Tourism fund chopped in the 2021/2022 budget estimate

The treasury will cut tourism funding in the new financial year by up to 30%, challenging efforts to revive the sector that was hard hit by the Covid-19 pandemic. 

In the budget estimates for 2021/2022, the tourism sector, which saw the largest ever allocation in the ending financial year of Sh9.4bn, will receive Sh6.97 billion.

This chop, is a result of last year’s covid-19 restrictions, which saw limited movement locally and internationally as well as closure of facilities and thousands of job losses.  

At the same time, tourism promotion will see its budget chopped to Sh1 billion from Sh1.8 billion while infrastructure development funding is down to Sh2.96 billion from Sh3.56 billion.

Sincce tourism is the country’s leading foreign exchange earner, the budget cop could affect tax revenues.

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