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Contents

MICE Tourism And Kenya......................................................................................................................... 2

Global and regional MICE market overview ......................................................................................... 2

Kenya macroeconomics ....................................................................................................................... 4

Kenya Business Tourism....................................................................................................................... 6

MICE and Kenya................................................................................................................................... 8

Competitor Analysis............................................................................................................................. 9

Global Facilities ................................................................................................................................. 10

Top Kenyan Venues ........................................................................................................................... 10


MICE Tourism And Kenya
Global and regional MICE market overview
The global MICE tourism, valued at over USD 800 Billion in 2017, is estimated to grow at a CAGR of around
7.5% and cross 1.5 Trillion US dollars by 2025. The industry offering Meetings, incentives, conferences,
and exhibitions services, is further supported by Government initiatives to promote tourism across the
globe. If the US, Singapore, Germany, China, the UK, France, Italy, and Spain are leading the sector with
their robust tourism sector, then the emerging economies like India, Brazil have ramped up their
investments in the tourism sector to benefit the MICE events.

Over the past few years, Kenya has successfully hosted multiple international
meetings, conferences and exhibitions. In total, these events attracted over
100,000 delegates from every part of the world

According to the Cabinet secretary in charge, it is hoped and believed that the
country could make over Sh3.74 billion from such events every year,

In 2015 the country hosted 117,630 foreign arrivals taking part in MICE
activities, representing a 13% increase on the 2014 total, and 15.6% of the
total number of international tourist arrivals for the year

Close to 10,000 delegates visited the opening ceremony of the Meetings,


Incentives, Conferences, and Exhibitions (MICE) exhibition at KICC. It is
estimated that, every delegate spent about Ksh 374,000 on average

Year 2015 saw multiple conference taking place in Kenya like, Global
conference on Public Relations in Emerging Countries and 10th edition of
WTO ministerial conference in Mombasa, to name a few

Kenya has seen a steady rise in MICE tourist arrivals over the past few years. Clearly, the focus on MICE tourism is
working out well for Kenya already

Amongst these emerging and established economies, one more region, Africa, is depicting a positive trend
related to MICE activities. Increasing flight access and connectivity, favorable exchange rates, and an
opportunity for carrying out sustainability and CSR events, which further create a brand image around
sustainability, is driving market growth in the region. The Government of African countries is strategizing
to prepare East Africa as the next market-ready region for MICE.
The young population of Sub-Saharan Africa is supported by the African Union's Agenda 2063, with a plan
to increase tourism competitiveness, majorly into the business sector. Countries like Uganda have
developed National Convention Bureau (NCB), while Kenya and Ethiopia are up scaling their NCB to
increase the demands for MICE events in Africa. Kenya, with the strategic location of Nairobi and improved
infrastructure, is well placed to be the preferred regional hub for the East Africa Community, and continue
to enhance the growth of business travelers.

• Valued at over USD 800 Billion in 2017


GLOBAL
• CAGR of around 7.5%
MARKET • Expected to cross 1.5 Trillion US dollars by 2025
SCOPE

• Reduced political activity and beefed-up security


• betterment of infrastructure, connectivity, technology, KENYA
visual attractions, increased FDI
GROWTH
• new trend of "Bleisure" is rising in the country
CATALYSTS

• Improved Road Infrastructure


• Improved Transport Infrastructure KENYA
• Improved Railway Infrastructure
Initiatives

The Government of Kenya has understood the value of tourism for the country and has a mission to propel
Kenya to the top 50 MICE destinations globally and at least the top two in Africa by 2022. It came up with
the "Kenyan Tourism Agenda, (2018-2022)", which stresses the need to boost business tourism, for it is a
lucrative and fast-growing segment of the world's tourism.

Reduced political activity and beefed-up security have further necessitated increased bookings in the
Nairobi region, and the new trend of "Bleisure" is rising in the country. This, along with multiple futuristic
investment plans from the Govt of Kenya, including the betterment of infrastructure, connectivity,
technology, visual attractions, increased FDI, and others, have placed Kenya on the verge of being
recognized as one of the major MICE destinations globally.

Kenya Macroeconomics
Kenya has undertaken major political, structural, and economic reforms that, over the past decade, have
primarily driven sustained economic growth, social development, and political gains. However, poverty,
inequality, climate change, continued low private sector investment, and the economy's vulnerability to
internal and external shocks are still crucial challenges faced by the country.

Real GDP Growth (%) Real GDP per capita growth


8 6.5
(%)
6.2
8
4.1 3.9
4
4

0 0
2018 2019 2020 2021 2018 2019 2020 2021

CPI Inflation (%) Budget Balance (% of GDP)


8 0
4.7 5.2 2018 2019 2020 2021

4 -4.8
-4
-7
0
2018 2019 2020 2021 -8

Macroeconomic Indicators of Kenya (Source: African Development Bank)

To mitigate these challenges and support its population, the Government has come up with Vision 2030,
which desires to improve its infrastructure, including road and rail. The overall investment needed for
these regions is $20bn to meet the basic standard of the region's transport infrastructure, and the
inadequate funding continues to impede the speedy implementation of desired projects. However, this is
not stopping the Government from making investments to improve the necessary infrastructure,
including-
 Road Infrastructure: Recently invested in the improvement of Northern Corridor worth 368km
length. Ongoing construction of the 27km JKIA to Westland four-lane expressway at the cost of
$650mn, including BRT plan, aimed at improving public commuter service and easing congestion
 Transport Infrastructure: Multiple
regional investments, including a
$23bn multi-modal transport
corridor dubbed "Lamu Port-South
Sudan-Ethiopia Transport"
(LAPSSET) corridor, aiming for
better integration of Kenya,
Ethiopia, and South Sudan, with
links to a new port at Lamu in
northern Kenya. Another ongoing
construction of the 158 kilometers
Arusha-Voi road is scheduled for
the completion of December 2019.
It is funded by the African
Development Bank (AfDB) and
Kenya and Tanzania's governments
for $232mn. A second 460 km road
between Malindi and Bagamoyo is
scheduled to start construction in
2020 at a $751 million cost
 Railway Infrastructure: The World
Bank is providing $300m in
financing to develop the three commuter rail projects. Under the LAPSSET Railway component, a
high-speed standard-gauge railway built on the LAPSSET Corridor will move at an average speed
of 150 kilometers/hr. At this speed, it will mainly increase the efficiency of trade in bulky and
perishable goods in the region
Although the Kenyan Economy is dealing with Pandemic and Locust's impact, it is still estimated to
recover, and GDP shows growth of over 5% by July 2021. This growth is complemented by the fact that
Kenya has ample Airports, Seaports, and different ports that are well poised to give it an advantage for
trade or MICE tourism. The Government of Kenya is doing its best by investing in these ports, technologies,
and other tourism attractions to make themselves known in the world of business tourism.

Kenya Business Tourism


The fact that the Government of Kenya is pushing hard to establish the country amongst the top 50 MICE
destination in the world is supported by the number of investments they are making to improve the
infrastructure. In fact, recently, Kenya's President Uhuru Kenyatta and French President Emmanuel
Macron in Paris signed three bilateral agreements, out of which two were agreements for the
development of the Nairobi central business district (CBD) to Jomo Kenyatta International Airport (JKIA)
commuter railway line and the 400kV Menengai-Rongai electricity transmission line. The Nairobi CBD to
JKIA commuter rail link will help enhance travelers' movement between the city center and Kenya's
foremost international airport. The project is estimated to cost USD 189.6 million and is co-financed by
the Bank Group (84.4%) and the GoK (Government of Kenya) (15.6%). The construction period is 30
months. The beneficiaries include some 80 million people from Kenya and East Africa directly served by
the hub airport. Expanded airport infrastructure is envisaged to improve connectivity between Kenya and
the World, thereby facilitating high-value exports and imports, increasing tourist earnings, and advancing
Kenya's economy towards a middle-income level. These investments are made keeping the Vision 2030
in-sight, which will help increase business tourism in the country

Even though the tourism was massively hit by the Pandemic and few months of this year saw negligible
tourists arrival in Kenya, and the Ministry of Tourism has estimated the MICE sector will lose
approximately Ksh 163.56 billion due to the Pandemic. Still, with its strategic location in the region and
facilities like KICC, which boasts international standards and the Kenya National Convention Bureau, it is
expected to increase Kenya's global profile in the MICE sector. This is further strengthened by the fact
that various flagship projects like KICC expansion, building MICC Mombasa, NICC Bomas development,
Kenya Signature Wildlife parks, Mombasa Waterfront Development, Ronald Nagala Utalli college
establishment, Little theatre development, and Building Cruise terminal, are all planned to take MICE
tourism to the next level in Kenya.
All these investments and the Government vision is based upon a well thought off strategy supported by
the fact that MICE is increasingly recognized globally as a critical component of healthy tourism industry.
And the below tourism facts for Kenya place it very firmly on the map of MICE tourism at the global level:

Najib Balala, Tourism Secretary in Kenya, is the person credited for an African tourism achievement
of $1.6 billion.

Americans like to travel to Kenya, as for this East African country, the United States remains
the largest source of western tourism, followed by the United States (UK), India, China,
Germany, France and Italy.

Global visits to Kenya came to 2,048,334 in 2019, 1,423,971 to Nairobi, 128,222 to


Mombasa. Twenty-seven, four hundred and fourty-seven tourists entered other airports
by ground

Total arrivals in 2018 were registered at 2,025,206-Kenya’s growth in 2019 was 1,167%.

Together with the overall growth of 1,167%, Jomo Kenyatta International Airport and Moi
International Airport showed significant growth of 6.07% and 8.56% respectively.

The majority of the entry points showed a decrease of -12.69% in arrivals at the land borders.
This suggests that the growth of international access to Kenya will continue to be powered by
air connectivity

In 2019, Kenya improved five positions to 56 in worldwide, with investors ‘attractiveness up from 61
in 2018, the World Bank ranked Kenya as easy-to-use market.

Amidst all these facts, it is also essential to note that 27% of visitors are searching for a new destination,
while nearly a third (32%) are looking for a new resort or town that is more adventurous. Gastronomy is
becoming an increasingly central component of the tourism experience, instead of being a good
experience. Innovative food is required, organic and special diets are provided, and hygiene standards are
high. One simple fact is, the better the experience, the higher are the chances of repeat tourism. And
Kenya, an East African country with an Indian Ocean coastline. Savanna, Lakeland, Great Rift Valley, and
mountain ranges are all in it. Wildlife, like lions, elephants, and rhinos, is at home as well. Safaris explore
the Maasai Mara Reserve from Nairobi, the capital, and the national park of Amboseli, providing views of
5,875 meters of the Mt. Kilimanjaro of Tanzania. All these factors and technology offer tourists almost
everything they need for their comfortable and happy "Bleisure" stay.
MICE and Kenya
Even though Kenya is losing out to Rwanda on the MICE front as the International community is shifting
its focus towards hosting the conference in neighboring countries. However, with the Vision 2030 and the
plan to put Kenya on the top 50 MICE destination by 2022, is witnessing multiple investments being made
to better the infrastructure and develop new world-class conference centers in Kenya. With KICC, Kenya
possesses an International level conference center with all the potential and technologies to compete or
attract business tourists. Improving the road conditions, privatization of airports, investments in ports,
railways, and other basic amenities, help better the traveling experience of business tourists. This, when
combined with the natural beauty that Kenya has in offering make it one of the preferred destination to
"Bleisure" for which tourists are now looking to explore new destinations for more adventurous
experiences. And with expected improvement in GDP in the coming years, Kenya is set to become and
possess the ability to meet MICE tourism requirements.
Competitor Analysis

Competitors Maximum Capacity (Pax) by Events The Safari park hotel has
the maximum capacity i.e.
54
450 200
10000 for Theatre seating
2500 5000 500
500 400
type while the least is 30
300
for Boardroom seating in
350 Meeting Hiton and Golden Tulip
1100 450
respectively. The average
4000 10000
700 800 600 Banquet
300 seating is around 1500-
Reception 2000 with least numbers in
Cocktail Golden Tulip and Highest
in Safari Park. All these
hotels serve Bliesure
packages

The Safari park hotel has Competitors Maximum Capacity (Pax) by Type
the maximum capacity
250 30 50 30
i.e. 10000 for Cocktail 250
230 200 110
300
120
5000 100 100
events while the least is 160
40
3200 300 300
54 for Meeting Events in 420
350 150
430 150
Golden Tulip. Most of
Board
these Hotels provide a
sgregation in meeting 10000 700 600 U-Shape
4000 660 700 300 250
650
type namely Cocktail, Class-room
Reception, Banquet and Theatre
Meeting. Hilton has
categorised itself into
single event type i.e.
Banquet while only
Golden Tulip has Meeting

The three main centers of Kenya very evidently takes up the maximum capacity for all the events and
types of events. With Kenyan centers being ahead in the competition and the Government of Kenya
staying focused on increasing tourism, it is only a matter of time till the world would see Kenya rising to
the top MICE destination in the world.
Global Facilities

Mice Global Statistics 2015

MICE Industry is dominated by the US and Europe, wherein the key players focus on acquisition and
expansion as the prominent strategy to overcome competition and maintain and improve its market share
in the global MICE industry. The industry includes top Global players, namely-

Maritz, BI Worldwide, Ltd., ITA Group, Inc, One10, LLC, Meetings and Incentives Worldwide (M&IW),
Creative Group, Inc., ACCESS Destination Service, 360 Destination Group, CSI DMC, Carlson Wagonlit
Travel, IBTM, BCD Group, Cievents, ATPI Ltd, Conference Care Ltd, The Freeman Company, and The
Interpublic Group of Companies, Inc.

Top Kenyan Venues


Kenyatta International Conference Centre (KICC)

Standing proudly at 30 storeys tall, the Kenyatta International Conference Centre (KICC) was constructed
in 1969 specifically for conference tourism. KICC has 8 meeting halls and delegated exhibition centers to
accommodate a large number of delegates. KICC is rich in MICE heritage, having organized conferences
such as the 2nd East African Invk estment Conference, World Bank, COMESA, World Women Conference,
3rd Global YES conference, 56th Commonwealth Parliamentary Conference, ISOCARP Conference, among
others. Equipped with cutting-edge technology and the latest equipment, KICC continues marketing itself
and Kenya as a MICE center.
The Panari Hotel

Located just 10 minutes away from the Jomo Kenyatta International Airport and 7km away from the city
center, The Panari Hotel is situated in an ideal location for corporate and casual travelers. The hotel hosts
12 meeting rooms and state of the art audiovisual equipment and is designed to meet every MICE event's
needs. The hotel also provides decor, catering, entertainment, and secretarial support services to help
event organizers through the planning process.

Safari Park

Situated in Nairobi's heart, the Safari Park Hotel is sprawled across 50 acres, surrounded by natural
landscapes. The hotel boasts of 20 meeting and conference rooms equipped with the latest technologies
in terms of connectivity. They offer to help organizers with technical and recreational services help
organize and manage the events to provide services such as airport transfers, excursions, registrations,
meals, etc.

Radisson Blu

Situated in Nairobi's fast growing business district, Radisson blu is located 20 minutes away from both the
Nairobi National Park and the airport. The 271 rooms and suites are fitted with free WiFi and a minibar. It
also boasts 14 meeting rooms and boardrooms that can accommodate up to 800 people. The meeting
and events staff aims to help the organizers successfully organize and adapt the venue to suit their needs.

Hilton

Situated near the financial center in Upper Hill, the Hilton is one of Africa's tallest developments. With 6
meeting rooms and 287 guest rooms, and an open-air solarium, the Hilton offers a natural touch to the
corporate events. The offer an executive boardroom with rentable A/V technology and multi-lingual staff
to accommodate the delegate's needs throughout the events.

The Nairobi International Convention and Exhibition Centre (NAICEC)

It will be developed at the Bomas of Kenya. NAICEC is a 15,000 ultra-modern convention facility that is to
be developed through a long-term lease arrangement of a private concessions company
The Nairobi
Kenyatta Mombasa
International
International International
Convention and
Conference Centre Convention Centre
Exhibition Centre

The Nairobi Hospital


The Panari Hotel Hilton
Convention Centre

Safari Park Radisson Blu

Key African Venues

Mombasa International Convention Centre (MICC)

It is one of the most ambitious projects for the Government of Kenya and is called Kenya's Vision 2030
flagship project to uplift the tourism at the coast. It will introduce about 15,000 conference capacity to
the region. MICC will raise 10,000 conventional capacity to the coastal region. Plans are underway for the
Kenyan Government to construct a 5,000-seat international convention center in Mombasa

The Nairobi Hospital Convention Centre (TNHCC)

It is the Home of Extraordinary Experiences as a multi-purpose conference and exhibition center in


Nairobi's business and entertainment center hub. It combines the passionate dedication of its capable
personnel with an extensive range of premium venues, services, and facilities. This innovative venue offers
a comprehensive array of international and locally-based services, playing host to prominent global
conferences, trade shows, concerts, and celebrated stage productions.

In East Africa, the Top Investment Hospitality Markets are Kampala, Addis Ababa, and Dar es Salaam,
while the bottom is Nairobi (oversupply) and Kigali (oversupply and limited demand). This means Kenya
has a lot of catching up to do, and it has been well crafted in the Kenyan Government's mind, which is
highly evident in their vision and investments in infrastructure. With a subtle upgrade in infrastructure,
technology, and completion of the ambitious conference projects, Kenya is well placed to lead the MICE
tourism in Africa very soon.

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