The Kenya Association of Travel Agents (KATA) on Tuesday called upon the government to act urgently in shielding the travel industry from the economic effects brought on by the coronavirus pandemic that has caused global devastation.KATA Chariman, Mohammed Wanyoike stated through a brief update on the ongoing devastating impact of the Coronavirus on the travel industry in Kenya, that the industry is currently witnessing a grounding due to the announcement that international flights have been denied entry into Kenya effective midnight on Wednesday.
“We are witnessing the shutdown of the travel industry. The economic effects are getting worse by the day and could become more permanent if the government does not act now.” he said in Nairobi.
The travel sector has continued to witness a drastic decrease in travel owing to the travel restrictions put in place by the Governments of Kenya, USA, UK, and European Governments, Middle East and Asia including India.
As such, mid of March, some airlines canceled their scheduled operations into Kenya. These airlines include Air India, Etihad Airways, South African Airways and RwandAir.
National carrier Kenya Airways has suspended flights to and from key business and tourist destinations within their network.
“During the month of February 2020 the Travel Industry in Kenya recorded a decline in passenger number bookings of 50%, followed by a drastic cancellation of flight bookings, conferences and events resulting in a revenue loss to the sector of 85%. Over 95% of forward bookings for the month of April 2020 have also been cancelled since Europe, America and the Middle East issued lock down notices for non-citizens,” he said.
“The Travel industry has recorded Zero bookings this week and the forecast for April to June 2020 is the same. This is an unprecedented occurrence, and travel agents have no cashflows to support their employees in the coming months should the government fail to intervene,” he added.
According to KATA, the full impact of the crisis is expected to last at least three quarters, with the second quarter of 2020 being the low point.
The travel industry has over one thousand travel agencies, and it is projected that a majority of the travel agents are facing an imminent risk of collapse.
The association is pushing for immediate intervention saying that it is imperative that the Government steps in to provide immediate relief measures for the industry.
KATA is the national umbrella body for Travel Agents in Kenya, with a growing membership of […]