State's double-speak as it blocks licence for top EU tour operator

Europe’s largest tour operator, TUI, has suspended its planned expansion in Kenya, including the development of new hotels, after being denied a crucial charter licence.  

The shock move by the tour operator deals a significant blow to Kenya’s tourism sector and President William Ruto’s ambitions to create new jobs and attract more visitors. 

TUI, a global tourism giant that had earmarked Kenya as a focal point for its sub-Saharan Africa expansion, expressed deep regret and frustration over the Kenyan authorities’ decision to deny TUI fly Netherlands the necessary charter licence for operations to and from Mombasa. 

“Despite full compliance with all regulatory procedures and strong support from Kenya’s tourism sector, TUI’s application was rejected without any explanation or justification,” Head of External Communications and Spokesperson at TUI  Petra Kok said in an exclusive interview with Weekend Business. 

Continued refusal

We could not immediately reach the Tourism Ministry or the Kenya Civil Aviation Authority (KCAA) for comment.

The Kenyan aviation regulator had earlier, in a gazette notice, announced the decision to deny TUI a licence without elaborating the reasons.  

Established in 2002, the Kenya Civil Aviation Authority (KCAA) oversees aviation safety and security, regulates air services, and provides air navigation, guided by international and national aviation laws. 

The tour operator also highlighted the continued refusal to grant scheduled traffic rights to TUI fly Netherlands, despite the airline being officially designated by the Government of the Kingdom of the Netherlands under the terms of the Bilateral Air Services Agreement with Kenya.  

TUI said it views this as a violation of Kenya’s international aviation commitments, severely disrupting its operations. 

“The arbitrary decision appears protectionist in nature. It not only undermines fair competition, but also sends a signal to international investors and partners,” Ms Kok stated. 

As a direct consequence of these setbacks, TUI confirmed it would immediately suspend planned growth initiatives in Kenya.  

These initiatives were extensive and aligned with Kenya’s Vision 2030, including the development of several new premium hotels in the coastal region and the launch of new flight routes designed to boost inbound tourism. 

This suspension comes as a particular blow to the Kenya Kwanza administration.  

Just recently, during a tour of the Coast region, President Ruto publicly promised to boost incentives for the coast tourism sector with the aim of creating more jobs for the youth.  

TUI said its cancelled projects alone would have “created thousands of local jobs, injected tens of millions of dollars into the economy, and aimed to elevate Kenya’s position as a growing tourism destination in East Africa.” 

TUI Group has been actively expanding its global footprint, viewing Kenya as a strategic gateway in sub-Saharan Africa to capitalise on the region’s growing tourism potential.  

This forms part of its broader strategy to diversify operations and enhance market presence in emerging destinations, leveraging Kenya’s unique cultural and natural resources. 

The company employs an integrated business model, encompassing tour operators, hotels, cruises, experiences, and its own airline, to collaboratively develop new tourist locales.  

This approach emphasises economic, ecological, and social sustainability, focusing on aspects like renewable energy, natural resource conservation, housing solutions for growing populations, and boosting local engagement through the use of local products and services.  

The TUI Care Foundation, supported by the Group, has also been active in various sub-Saharan African countries for years, including reforestation programmes in Kenya and Zanzibar. 

TUI has been successfully developing new destination clusters elsewhere in the region, mirroring its success in Cape Verde, where it transformed islands into a bustling holiday hotspot.  

Recently, TUI inaugurated The Mora Zanzibar, its fourth Group hotel on the island, with further initiatives planned to enrich its hotel offerings in the coming years, including the new Robinson Club.  

New hotels are also set to open in Senegal and The Gambia, and existing operations in Cape Verde are slated for further expansion. 

TUI, which has been a committed partner for the Kenyan tourism sector for many decades, concluded its statement by urging Kenyan authorities to reconsider their position. 

“As the recent decision is clearly not in the best interest of Kenya’s people, its economy, and its tourism industry, we urge the Kenyan authorities to reconsider their position. TUI remains open to constructive dialogue to restore trust and ensure sustainable growth of tourism in Kenya.”  

The unceremonious denial of a licence without explanation leaves a significant question mark over Kenya’s attractiveness for major international tourism investment, analysts and tour operators said. 

“We are addressing this matter with the authorities, typically charter flights have always been licensed and we have never had any issues for the simple reason that they are selling a tour package,” said Mombasa-based hotelier Mohammed Hersi in a public post shared on his social media.  

“Charter flights are what have kept most long-haul destinations globally going, including the Kenyan coast.

“I have no doubt in my mind that the charter policy is not about to change since that will totally kill international tourism at the Kenya coast, including feeding Tsavo and Amboseli in the absence of scheduled flights.”