18.0 TRADE IN SERVICES

18.1 Tourism Development

It is recognised that global tourism is one of the largest service industry. The DP recognizes the important role that tourism plays in the economic development although it is currently under performing compared to our Regional competitors. It is a source of foreign exchange earning, employment and income. Kenya has beautiful beaches, wildlife, culture, sports, historical sites, and beautiful Countryside landscapes that attract tourists. Tourism in the Country has generally improved. The flow of tourist has gone up by 12% and 15% over the last three years. Tourism income recorded a remarkable growth from Ksh. 21.735 billion in 2002 to 56.200 billion in 2006. The number of tourists has grown from 1,001300 in 2002 to 1600600 in 2006. The revenue earned also continued to grow and stands at Kshs.52.6 billion in 2006 as compared to Kshs.48.9 billion in 2005. this is in contrast to the Budget allocation of Ksh. 37 million for marketing This growth is attributed to measures undertaken by the Kenya Tourism Board and the Kenya Tourism Development Corporation (KTDC) to market the service. Constraints to the tourism industry include threats of terrorist attacks, political instability, environmental degradation, poor infrastructure, high cost of jet fuel etc. The DP Government will implement the following measures:

1. Develop the tourism infrastructure to world standards, especially the roads, railway and airports system.

2. Build capacities of the tourist police.

3. Encourage investments into the sector through incentives and entering into partnerships with foreign investors to build tourist facilities

4. Develop a tourism Policy that will define the rights of both human and animal life and compensation as result of wildlife/human conflict.;

5. Give incentives to SMEs in the sector to enhance ecotourism.

6. Ensure that the communities living around tourist attraction areas benefit from the tourism industry.

7. Diversify the tourism products and markets.

8. Develop sports, cultural, historical and geographical tourism to go along with the beach and wildlife tourism that we currently market.

9. Build capacities of KTB, KTDC, KATO and other tourism development companies and agencies to be encouraged to get into the international markets and open up self funding and income generating tourism offices in foreign countries.

10. Set up seven Star hotels and lodges facilities in the Country to cater for the very rich tourist.

11. Increase planned Countrywide accommodation facilities

12. Expand tourist attraction activities including bird watching, mountain climbing and up Country fishing

13. Expand the infant Western tourist circuit and develop the Northern Circuit

14. Integrate sports and tourism.