The government has started a project to rehabilitate old hotels at the Kenyan Coast.
In what appears to be a big boost to the tourism industry, Tourism CS Najib Balala has announced that talks between his ministry and the African Development Bank are on.
More than $100 million (approximately Sh10 billion) will be used to resuscitate the ailing industry.
"We are currently in talks with the bank and we should have some
feedback soon. But it is only the old hotels and not new ones, that will
be privileged to access the funds, once available," Balala said.
The funds, he said, will be under the Refurbishment Fund, with its primary role of ensuring old hotels are revamped.
Balala said hotels that qualify for the fund will refund the money with an interest of between five-six per cent, to ensure others benefit from the service.
The CS spoke at the State House in Mombasa during the Tourism Summit.
Balala said there is need to designate the beach destination as the Swahili Riviera-coastal region with subtropical climate and vegetation.
He said the ministry has identified 10,000 acres for investors to create jobs and build new tourism facilities.
"We have a good product - beach and safari - but innovation is needed. We need to review what we are giving as a product and service to clients," Balala said.
The CS said the 24-hour economy should have a ripple effect with counties working with the government and create economic activities around hotels.
Some of the initiatives the ministry is undertaking are setting up of a Tourism Promotion and Development Fund.
Heritage Group of Hotels CEO Mohammed Hersi said Kenya and the African governments should play a big role in promoting tourism and conserving the environment.
Kenya Tourism Board acting MD Jacinta Nzioka said the board has invested in advertising for brand awareness campaigns.
"We were going out to the market to ensure visibility, since you have to be in the eyes of the client. KTB has started a strategy of digital platform and social media to advertise Kenya," she said.
The officials said reinvestment in the current hotels is part of product development.
