TOURIST NUMBERS DEPRESSED WHILE POACHING OF WILDIFE,

UNCLAS SECTION 01 OF 02 NAIROBI 000373

STATE PLEASE PASS USAID/EA AND USTR FOR PATRICK DEAN COLEMAN AND
WILLIAM JACKSON

POSTS FOR REO AND ESTH OFFICERS

ADDIS ABABA FOR REO KIRSTEN BAUMAN

INTERIOR FOR US FISH AND WILDLIFE SERVICE

AGRICULTURE FOR US FOREST SERVICE

COMMERCE FOR BECKY ERKUL

SENSITIVE

SIPDIS

E.O. 12958: N/A
TAGS: SENV ETRD KCRM KSCA ECON KE
SUBJECT: TOURIST NUMBERS DEPRESSED WHILE POACHING OF WILDIFE,
ESPECIALLY ELEPHANTS, WORSENS IN KENYA

REFS: (A) 08 NAIROBI 1971 (B) 08 STATE 84626
(C) 08 NAIROBI 1821 (D) 08 NAIROBI 1712


1. SUMMARY: Kenya Wildlife Service, Ministry of Forestry and
Wildlife, and Ministry of Tourism officials are concerned by a
sudden spike in the numbers of elephants, especially in Amboseli and
Tsavo East National Parks, apparently poached for their tusks. At
the same time, they along with counterparts at the Kenya Tourist
Board are dismayed that international tourist arrivals remained
sharply down throughout the high season; receipts and arrival
numbers were off over 30%. End Summary.


2. Kenya Wildlife Service (KWS) and Kenya Tourist Board (KTB)
officials concede that the hoped for jump in international tourist
arrivals and receipts did not materialize during the recently
concluded high season, which is marked by the annual wildebeest and
zebra migration across the Mara River in the Maasai Mara Wildlife
Reserve. Rather tourist arrivals, according to the KTB, ended the
year down 32% from a historic high of 1,048,738 in 2007 to 710,804.
Receipts were also off over 30%. The number of American visitors
nosedived from 116,800 to 74,532. German, Italian, and French
visitors were noticeably frightened away by the January-February
2008 post-election violence. In 2007 they accounted for 454,000
visitors; in 2008 a mere 100,936. Unsurprisingly, numerous hotels
and lodges in Kenya have cut staff. Over 20,000 Kenyans working in
the hospitality industry lost their jobs in 2008.


3. KWS told consul February 20 that it expects the global financial
crisis to have a more significant negative impact on tourism than
post-election violence did a year ago. KTB and Ministry of Tourism
officials are also worried that 2009 will witness a further decline.
That said the Kenyans are not resigned to a bad year. Industry
leaders are lobbying the government to reduce its visa entry fee
from $50 to $25 and provide a visa waiver for children under the age
of 16 as ways to spur arrivals. They are also asking KWS to
reconsider its recent decision to raise park fees from $40 to $60.
They have also suggested to the Ministry of Transport to lower the
airport landing fee of $3500 to help reduce ticket prices.


4. KWS continues to foster strong relationships with international
investors interested in entering Kenya's hotel/tourism sector
despite the economic downturn. There are already ongoing projects
at some of the premier animal parks such as Amboseli and Maasai
Mara. According to KWS Director Julius Kipng'etich, long-sighted
investors view the strong dollar and the established brand name of
the country as good opportunities, and so he and KWS remain
confident that the tourism industry will rebound within a few
years.


5. According to the KWS director, 40% occupancy is the break-even
level for parks and hotels to function. KWS believes that domestic
demand remains strong. To get through the economic slump, KWS, the
Kenya Association of Hotel Keepers and Caterers, and tour operators
will cater more to potential homegrown consumers through marketing
and more attractive packages with lower prices than they have in the
past. They predict resident rates on safari and beach vacation
packages will likely decline sharply in April and May to generate
more interest among Kenyan tourists. In order to help the tourism
industry rebound, Kipng'etich informed consul that KWS and its
sister government agencies involved in tourism promotion intend to
ratchet up their advertising campaigns targeting the local market.
But at present, the sector is in the doldrums.

--------------
Elephants under Attack?
--------------


6. Adding to the glum news is a just released report, "Elephant
Poaching and Ivory Trade in the Amboseli Area," issued by the
Amboseli Trust for Elephants, which charges that poaching of
elephants in Amboseli, Samburu, and Laikipia by groups rumored to be
linked to Chinese buyers has dramatically increased since last
summer's CITES decision to allow a one-off sale of legal ivory to
China (reftels). The trust claims that 18 elephants were slain in

NAIROBI 00000373 002 OF 002


Amboseli (home to an estimated 1,550 elephants) and another 80 in
Samburu and Laikipia for their tusks. Patrick Omondi, the
co-coordinator of KWS's elephant program, confirms that 80 elephants
have been killed in the past year. He and KWS concede that poachers
killed six elephants in Amboseli in recent weeks, but maintain that
the other 12 were victims of human-wildlife conflict and not killed
for their tusks. Nevertheless, to stem incidents of cross-border
poaching, KWS has joined with the Tanzania Wildlife Division and its
Wildlife Research Institute to conduct joint cross-border law
enforcement operations.


7. Tsavo East National Park, home to a large number of animals,
particularly rhino and elephants, is Kenya's most vulnerable park in
terms of poaching due to its proximity to the Somali border. Armed
Somali poachers, after walking roughly 500 miles, trespass the park
to slaughter both for horns and tusks. Rhino horns sell for a
minimum of $5000 and can fetch upwards of $12,000 in Dubai and other
high-end destinations. Rhino horns range from 3-7 kg per animal.
KWS believes that the profits from poaching are likely being used to
fund illegal activities. KWS has intelligence and anti-poaching
units scattered along the known routes being taken by these Somalis.
There have several armed confrontations; one in late May 2007 left
three KWS rangers dead and one badly wounded in a firefight with
poachers, four of whom were killed.


8. On five separate occasions since mid-2008 Kenyan airport
security officers and Customs agents have interdicted Chinese
attempting to smuggle raw ivory or finished ivory products out of
Kenya. The Kenyan authorities, including KWS officers, are so
concerned about the Chinese that they are now screening passengers
on all flights to Asia (China in particular) for illegal possession
and attempted export of animal products. Notwithstanding the KWS
director's assertion that his officers do not "profile," Chinese
embassy officials have gone to great lengths to assure Kenyans that
Chinese living and working in Kenya are law-abiding and not involved
in poaching. Ironically, the Ministry of Tourism and KTB have
significantly bolstered their advertising campaigns targeting
potential Chinese tourists.

Ranneberger