Number of UK holidaymakers coming to Kenya and other markets is projected to fall by a high of 5 percent in the short-term on a landmark decision by British citizens to leave the European Union.
International Air Transport Association (IATA) predicts number of UK air passengers could be 3-5 percent lower by 2020, driven by the expected downturn in economic activity and the fall in the sterling exchange rate.
The sterling pound has weakened by 6.7 percent to strengthen the shilling, significantly lowering purchasing power for UK holiday makers.
By close of market on Friday, the pound plunged by 10 units to Sh 139.55, an average for commercial banks in the country.
This means UK tourists will dig deeper into their pockets to book hotels, entry fee to National parks and Safaris.
Yesterday, the pound traded at Sh 149.50 against the shilling, firmed up to Sh 150.50 before the final verdict of a highly divisive exit vote.
Arrivals from Britain to Kenya dropped by 15.9 percent last year from 128,600 in 2o14.
“The near-term impact on the UK air freight market is less certain, but freight will be affected by lower international trade in the longer term,” said IATA’s Director General and CEO Tony Tyler.
The UK also faces a trade-off between accessing the European Single Aviation Market and having the policy freedom to set its own regulations.
