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    Tourism Earnings Projected to Hit KSh 560Bn in 2025

    Fred
    By Fred Obura
    - February 20, 2025
    - February 20, 2025
    Kenya Business newsTourismTravel & Leisure
    Tourism Earnings Projected to Hit KSh 560Bn in 2025

    Kenya earned Kshs. 452.20 billion from tourism last year compared to Kshs. 377.49 billion in 2023, translating to a growth of 19.79% as the sector recovered from the pandemic slowdown. 

    • •In 2024, Kenya experienced a notable increase in international tourist arrivals, welcoming 2,394,376 visitors compared to 2,089,259 in 2023.
    • •The United States led as the largest source market, accounting for 12.8% of total arrivals, followed by Uganda (9.42%) and Tanzania (8.49%).
    • •The government is projecting 3 million tourists and KSh 560 billion in earnings in 2025. 

    “The sector’s robust performance in cruise tourism, Meetings, Incentives, Conferences, and Exhibitions (MICE), and hospitality underscores the need for continued investment in world-class facilities and seamless connectivity,” says Tourism Cabinet Secretary Rebecca Miano 

    “As we look ahead, our vision is to elevate Kenya’s tourism sector to new heights by capitalizing on emerging opportunities and addressing existing challenges. Strengthening our presence in key international markets, enhancing service delivery, and promoting sustainable tourism practices will be pivotal to achieving this goal.”

    Meetings, Incentives Conferences and Exhibitions (MICE) accounted for 27% of the total tourism arrivals during the period under review. This is a 12.5% increase compared to previous year that accounted for 24% of the total tourist arrivals. In 2024 MICE recorded 37,405 international delegates in the year 2024 compared to 34,814 the previous year translating to a growth of 7.4%.

    The number of international delegates increased in the months of May and September 2024, attributed to high profile events such as annual meeting for the AFDB Group Board of Directors, IDA for Africa Heads of State Summit, Extra Requirement for Africa Fertilizer among others. On the other hand, MICE recorded 699,469 number of Local delegates in 2024, translating to growth of 3.3% growth from 2023.

    The bed- nights occupancy is estimated to have risen by 16% from 8.6 million in 2023 to 9.99 million in 2024. Occupancy by international visitors is estimated to have increased from 4 million in 2023 to 4.8 million in 2024 while domestic bed occupancy grew by 12%.

    In terms of source market increase, Tanzania was first with an increase of 42,133 from 161,157 in 2023 to 203,290 in 2024. The second most improved source market was China with an increase of 29,085, from 61,377 in 2023 to 90,462 in 2024. Notably, the United States of America came in third with an increase of 28,342 from 278,159 in 2023 to 306,501 in 2024. Other high- growth markets include Somalia (27,029), Italy, (19,926) and Uganda, (19,755).  

    For the East African Community, business and conference travel accounted for the largest share in most countries, with Uganda 46.7%, Tanzania 46.6%, and Rwanda 46.9% showing a particularly strong presence in this category. Visiting Friends and Relatives (VFR) was the second most common travel purpose, notably high in Burundi 48.6% and South Sudan 53.1%. Holiday and leisure travel vary significantly, with South Sudan 16.3% and the Democratic Republic of Congo (DRC) 14.7% showing relatively higher proportions compared to Burundi 8.3% and Rwanda 10.1%. Transit travel is highest in the DRC 14.0% and lowest in South Sudan 2.4%.

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