Moody's predicts the attack will cost Kenya's economy $200 to $250 million in lost tourism revenue, estimating it will slow growth of Kenya's GDP by 0.5 percent. Kenya's 2012 GDP was $41 billion.
“Evidence would seem to indicate that 2013 could well be a very difficult year for the local tourism industry,” according to a report released Tuesday by Business Monitor International, which revised its 2013 outlook for Kenya's tourism growth from 3 percent down to 1.5 percent.
Tourism is Kenya's largest earner of foreign exchange after tea and coffee exports, generating $4.7 billion in 2011, according to Moody's and the World Travel and Tourism Council.
Kenya is Africa's fifth largest tourist destination, welcoming approximately 1.8 million visitors each year. Nearly half come from Britain and Europe, while visitors from the United States became an increasing share of the total during the past two years, according to Kenya's Ministry of Tourism.
The anticipated toll on tourism is expected to magnify the decline in tourist arrivals caused by the massive fire to Nairobi airport's arrivals terminal in August.
