Ladies and Gentlemen,

It gives me great pleasure to be with you today to exchange views on how we can strengthen the performance of the tourism sector. This forum is particularly important because of the challenges we faced in the early part of this year.

This meeting therefore signals our determination to ensure that Kenya's status as a tourism destination of choice is not only maintained, but also enhanced. It is also fitting that we are holding this meeting here in the coastal town of Mombasa, the heart of the tourism industry in Kenya.

As you all know, 60 percent of tourism activities in our country are concentrated here at the Coast owing to the region's wonderful attractions including white sandy beaches, marine parks, a rich historical and cultural heritage and above all, the renowned hospitality of the coastal people.

But of course, tourism is not only about welcoming people. Worldwide, it is a high value industry that provides employment for thousands of people directly, and hundreds of thousands more through its high multiplier effects.

Indeed, through linkages with other sectors such as agriculture, manufacturing, handicrafts, banking and insurance, it is clear that many of our people owe their livelihood to the tourism sector. It is therefore important that all of us do our utmost to protect this important sector.

Indeed, when tourism declines, it is not only Government that is affected by reduced revenue earnings, but also many families suffer when their breadwinners lose their jobs, suppliers lose markets for their products and even small scale traders find it difficult to sell their wares.

Clearly, the repercussions are many and far reaching. As government, we are directing priority attention to this important sector which has the capacity to respond quickly to positive policy initiatives, and also has the potential to create thousands of jobs for our young people. We have teamed up with the private sector and other development partners to undertake an aggressive marketing campaign to reassure tourists that Kenya is a safe destination.

I want to commend the Minister for Tourism for personally taking charge of efforts to market Kenya abroad. He has already led successful marketing tours to some of our key markets in Europe.

We have also managed to convince governments in countries that contribute the bulk of our tourists to lift the negative travel advisories that they imposed on us at the beginning of the year. Some of the countries have already cancelled the advisories and endorsed Kenya as a tourism destination of choice.

As we forge ahead in our recovery efforts, we should be inspired by the fact that tourism is a highly resilient sector. The tremendous growth in the sector following the downturn in 2002 is indeed a clear testimony to this fact. Between 2003 and 2007, we saw tourism earnings more than double from about 25 billion shillings to over 65 billion shillings. Indeed, the sector is now the leading foreign exchange earner.

Following the rapid and successful recovery of the tourism sector, the government identified it as one of the priority sectors to drive economic growth under VISION TWENTY THIRTY. For us to realize this Vision, you as tourism stakeholders are expected to play a central role in areas such as increasing bed capacity, enhancing quality of services and coming up with diverse and innovative products not only to capture new tourism markets, but more importantly to retain them.

Ladies and Gentlemen,

I am aware of the challenges facing the tourism sector. Our marketing budget, for example, is not adequate. We realize that if we are to really compete with other destinations and increase our market share, we have to invest more in marketing and promotion of tourism. I will therefore soon be announcing additional funding to the sector to strengthen and enhance the ongoing tourism promotion programmes. We are also in negotiations with our partners for additional support in this regard. In addition to these measures, my government is focusing on infrastructure development around the country.

The Government has already committed considerable resources to rehabilitate the main road links such as Mombasa-Nairobi-Kisumu, Mai-Mahiu-Narok leading to the famous Maasai Mara Game Reserve and by-passes that will ease traffic congestion in Nairobi and Mombasa. Here at the Coast, the government has re-carpeted the Mombasa-Malindi road, while construction of the Garsen-Hola road is to commence this financial year. Other projects that we are determined to implement in order to improve movement of traffic, include construction of the Dongo Kundu by-pass to the South Coast.

The government is aware that the roads we are building must be protected to ensure that they last longer so that the people can enjoy the benefits of the enormous investments we are making in this sector. Accordingly, in order to ensure that the roads are sustained for long, we are enforcing axle load regulations.

Ladies and Gentlemen,

Cities all over the world are becoming major tourist attractions, registering millions of tourists with huge economic impact. For instance, cities like Paris, London and Tokyo attract millions of tourists annually. However, this calls for careful physical planning, covering both infrastructure development and aesthetics. This is also the reason why I created the Nairobi Metropolitan Ministry to consolidate the planning and management of our capital city, as we endeavour to transform it into a world-class metropolis.

I am pleased to note that the Ministry has already come up with sound proposals and strategies to be considered for implementation. The strategies we are adopting for improvement of the Nairobi Metropolitan area, will no doubt be useful as we look into ways of modernizing Mombasa, Kisumu and other major urban areas in the country.

In the case of Mombasa, I believe that there are a few areas that we need to address urgently in order to improve its image. These include development of the road network, water supply, drainage system and ensuring proper waste disposal.

Accordingly, I hope that you, as stakeholders in the tourism industry will come up with innovative strategies aimed at re-modeling Mombasa city and the surrounding towns of Diani, Kwale, Mtwapa, Mariakani and Kilifi.

In doing so, I hope that you will endeavour to come up with a lasting solution to the problem of hawkers and other petty traders who operate along the beaches. On its part, the Government is investing in the construction of modern market centres for such traders. For instance, the Government recently acquired a strategically located piece of land in Bamburi area where a model centre will be constructed. Other centres will be established in all key tourism resort areas along the Coast.

The operations of the proposed market centres require your full support. There is no doubt that the success of small-scale traders who will operate from the markets will have a huge impact on the future of the tourism sector. We should never forget that it is through such small-scale operators that tourism benefits will trickle down to the local communities.

In concluding my remarks, Ladies and Gentlemen, let me emphasize that our commitment to establish a tourism training center of excellence at the Coast remains resolute. The facility will provide training opportunities for those who want to widen their knowledge and skills in order to enhance their productivity and benefit from the tourism sector.

I also wish to urge you to come up with holiday packages that are affordable to our Kenyan people. This will give them a chance to enjoy the wonderful natural heritage that God has given us. I personally had a wonderful experience at the Maasai Mara recently and would be happy to see more Kenyans having a similar experience.

Thank you and God bless You.