Business
Kenya: Little negative impact expected to economy due to Mall attack
Some near-term business interruptions and losses are a given, but a sustained economic shock is unlikely. The attack may end up being most costly for the tourism sector.
Tourism accounts for just over 10 percent of gross domestic product (GDP). The country earned US$1.2 billion last year and the sector employs 150,000 people.
The numbers of visitors to Kenya’s beaches and wildlife safaris plunged in 1998 after al-Qaeda agents blew up the U.S. embassy, and after Islamist militants tried to shoot down an Israel-bound airliner in 2002.
Mindful of the impact, President Uhuru Kenyatta asked foreign governments not to issue travel warnings – advisories that usually mean higher insurance premiums for travelers.
Mohammed Hersi, chief executive of the luxury Heritage Hotels Kenya chain, predicted some fallout but said the industry was learning to get up and dust itself off faster with every attack.
“It is still too early to say whether it will affect us but it is not good when it comes to tourism,” Hersi said.
“Terrorism is an international problem and Kenya shouldn’t be treated in isolation. For countries which are claiming to be sympathetic with our situation and supporting us to issue travel advisories amounts to betrayal and double-speak.”
