Moody's says city mall attack will hurt the economy
Tourists from Europe at the Moi International Airport. Moody’s rating agency says the country’s economy will take a temporary hit after the Westgate mall attack on Saturday, especially the number of leisure visitors. Rating agency says main impact will be a decline in number of leisure tourists.
Rating agency Moody’s says Kenya’s economy will temporarily feel the effect of the terrorist attack on Westgate Mall but has ruled out the possibility of it affecting foreign direct investment. It said the attack is not expected to affect Kenya’s first Eurobond.
Moody’s said the main impact would be a decline in the number of tourists coming for holidays, but expected the number of business travellers to remain relatively unchanged. “We expect the effect on arrivals to be concentrated in the leisure tourism sector, particularly from Europe, which accounts for about 45 per cent of arrivals,” said Edward Al-Hussainy, assistant vice president and analyst at the firm.
“We see no effect on foreign direct investment, which at around 1.7 per cent of GDP, is significantly below the median of 4.2 per cent for B-rated peers,” said the report indicating Kenya was less exposed to foreign factors than other East African countries. Data from the Economic Survey 2013 shows that both tourism earnings and the number of arrivals decreased in 2012 due to security fears and slow growth in the euro zone, Kenya’s single-largest market.
Tourism earnings stood at Sh96 billion in 2012, a two per cent decline from Sh97.9 billion earned in 2011.... Read the full, comprehensive news article and discuss at Business Daily AfricaSimilar Stories