Kenya and East Africa’s value proposition faces pressure amid rising tourism costs

Kenya and other East African countries face increasing pressure on their tourism industry due to rising travel and operating costs, according to a World Economic Forum report published on September 25, 2026. The report's Travel & Tourism Development Index revealed that price competitiveness declined in three-quarters of the 110 economies analyzed between 2024 and 2026, causing the global average to drop by 3.1 percent.

Rising costs in areas such as labor, food, energy, fuel, and transportation pose challenges to tourism businesses, which must decide whether to absorb these expenses or pass them onto customers. While affordability remains important, the report emphasizes that travelers are now also considering factors like accessibility, quality, reliability, and the overall experience when comparing destinations.

For Kenya and East Africa, the report highlights that affordability alone is not enough to sustain tourism growth. Instead, destinations must focus on delivering value through improved infrastructure, connectivity, service quality, and unique experiences. The report indicates that while international tourist arrivals reached 1.5 billion in 2025 and 101 economies improved their tourism competitiveness scores between 2024 and 2026, the sector is now more concerned with managing growth sustainably and resiliently.