Budget And Related Cost Estimations

Kenya: As a tourist destination of choice

Budget and related cost estimations

Unit	Average costs (US$)	Quantities	Total (US$) Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper
Air Ticket (To and Fro)	2500	2 people	5,000
Visa Cost	100 per head	2 people	200
Travel expenses in Kenya	2500		2,500
Lodging expenses	40/ night	14 nights	560
Daily food expenses	45/ 3 Meals	14 days	1,260
Tickets to amusement parks	15	14 days	210
Museum entrance fees	10	14 days for 2 people	280
Entertainment venue	10 per head	14 days for 2 people	280
Boat trips	10	10 days	100
Diving fee	5 per head	10 days	50
Other Expenses			300
Total			10,740

Kenya is regarded as the East Africa’s paradise. It is among the best tourist destinations around the world. Besides the reach tourist attraction sites, the country the cost of the visits and related expenses are pocket friendly to minimum wage earners. A tourist seeking to visit Kenya can conveniently save for the trip over a desirable period of time. Just like an investment, the first step in determining a tourism country to visit is to determine the cost associated with just visits. Visiting Kenya for two weeks, at the present time, would cost an average of USD 10,740. However, the cost is likely to increase, in the future, because of the inflation rates (Deisser, 2016).

Kenya: As a tourist destination of choice

Kenya is regarded as the East Africa’s paradise. The country is filled with wildlife, beautiful mountains like Mt. Kenya, islands, fauna, flora and lakes. Kenya is an ideal tourist destination for a couple/ family holidays (Spilsbury, 2011). The best period to visit Kenya is between the months of September and March. Some of the best tourist attraction sites to visit in Kenya are;

1. The Masai Mara Game Safari: The Masai Mara national park is filled with wildlife habitat not forgetting the historical wildebeest migration from Serengeti National Park in Tanzania in the month of September. The Mara is full of culturally and environmentally tour guides who ensure that the tourists are provided with services worth their investment(Deisser, 2016).
2. The Masai Mara’s Hot Air Balloon Ride: The hot balloon ride over the Masai Mara provides tourists with a unique perspective of viewing the wildlife. It takes sixty minutes for the wind driven balloons to travel over the Mara which gives tourists unique angle to film or photograph the animals(TourTheTropics.com, 2018).
3. The Amboseli National Park: The national park is one of the most protected national parks after Masai Mara. Located southeast of Nairobi, Amboseli offer the tourists with the best opportunity of seeing the wild elephants, wildebeest, cheetahs, lions, impala, hyena, giraffes, wild dogs, buffalos among others. Besides mammals, Amboseli is a home to over 400 different bird species(Spilsbury, 2011).
4. Lake Nakuru: Lake Nakuru is located within a two hour drive from Nairobi in the Great Rift Valley. Tourists are attracted to Lake Nakuru because of rhinos, abundant flamingos and fantastic scenery.
5. Mombasa Island: The Island is full of palm trees and variety accommodations which provide tourists with relaxing place after tiresome travelling within the locality. Mombasa offers historical sites, diverse coral reefs, beautiful beaches and attractive scenery. The must visit sites while in Mombasa are the Old Town and Fort Jesus.
6. Nairobi: Nairobi is Kenya’s capital city. The city is surrounded by many tourists’ sites such as the Masai Mara and Nairobi National Park. Considering the country’s vibrant people, Nairobi is cultures filled and vibrant city full of fantastic restaurants, orphanages, national museums, and fascinating buildings(Cover, 2009).
7. Bomas of Kenya: The Bomas of Kenya offers services which are tourist focused. The tourist attraction site is located ten kilometers from the Nairobi City center. The entertainment sessions offered by Kenyans from different cultural background offer tourists with a glimpse of Kenya’s identity. The Bomas of Kenya was founded by the government of Kenya to promote and preserve the country’s culture as well as teach tourists about the country’s cultural identity. This is a must visit site for visitors who want to more about Kenya(Deisser, 2016).
8. The Jambo Kenya Deluxe: This a rail between Nairobi and Mombasa. It provides classic comfort to the tourists who have an opportunity to travel through the Kenyan communities and see how people go through with their normal life. The tourists also have an opportunity to pass through Tsavo and see the African wildlife.
9. Mount Kenya: Mount Kenya is the second largest mountain in Africa after Mount Kilimanjaro in Tanzania. At least 10,000 people visit the tourist site annually to see its scenic beauty. The mountain is also rich in different lakes, and animal and plant diversity(Spilsbury, 2011).
10. Food: Besides attractive sites, Kenya also boosts of delicious dishes. The diversified foods range in different flavours of the Kenyan dishes, African cuisines of Western foods(Spilsbury, 2011).

These are just but a few sites which justifies how Kenya is a recommendable tourist destination. The millions of tourists that visit the country per year clearly shows how the country is an attractive destination to visit. The country provides an inclusive travelling cost

Analysis of the cost associated with day’s activity

• Air Ticket (To and Fro): A one-trip airline cost between Kenya and Australia range between US$ 1100 and US$ 1400 for one person giving an average of US$ 2500 in a two way travel for one person. Therefore the average travelling cost for a couple would be US$ 5,000.
• Visa Cost: According to the Kenya High Commission, any foreigner entering the country must have acquired a travelling visa. The average cost of a 30 day visa for tourists is US$ 100. Therefore, it would cost US$ 200 for a couple.
• Travel expenses in Kenya: Tourists would require tourist vans popularly known as the safari vans and taxis for local travelling.
• Lodging expenses: The average cost of lodging services for a couple goes for US$ 40 a night. Therefore a couple would spend $ 560 during a two-week visit.
• Daily food expenses: The country is rich of a wide range of delicacies. A day’s three day meal goes for US$ 45 which accumulates to USD 1260 for two weeks.
• Tickets to amusement parks: The average cost to access amusement parks is US$15 for a couple which is equivalent to US$210 for a two weeks visit.
• Museum entrance fees: The average cost to access amusement parks is US$15 for a couple which is equivalent to US$210 for a two weeks visit.
• Museum entrance fees: The average cost to access museums in Kenya is US$10 per head, which is equivalent to US$280 for a ten day visit for a couple.
• Entertainment venue: The average cost to access entertainment in Kenya is US$10 per head, which is equivalent to US$280 for a ten day visit couple.
• Boat trips: The couple would have to part away with US$ 10 for a single boat trip. The couple is planning to have ten boat trips which are equivalent to US$ 100.
• Diving fee: Diving fee at the Kenyan coast is $5 per head totaling to US$ 50 for the couple for ten days.
• Other Expenses: US$ 300 should be put aside to cater for unforeseeable and unaccounted for expenses.

Total cost considering a 2.5 % inflation rate per year in 10 years

			Total (US$)
Total Cost	10,740
Inflation rate	2.5% per year
Inflation cost per annum	10740	2.50%	268.5
Inflation cost for ten years	268.8	10	2688

The inflation cost per annum is US$ 268.8 which translates to US$ 2688 in ten years’ time. Therefore the total cost would be US$ 13,428 (10740 and 2688).

Monthly savings for US$ 13428 in 10 years

To attain the US$ 13428 after 10 years, the tourist must know the present value of monthly savings. The tourist intends to make monthly payments. Therefore, this investment should be calculated as an annuity. The present value interest factor a 10% annuity over a period of 10 years (120 Months) (Cover, 2009). Monthly savings can be calculated as shown below;

Present Value (PV) = Future Value * Present Value interest Factor (PVIF) 10%, 10 years

= US$ 13428 * 0.3855

= US$ 5176.4

An amount of US$ 5176.4 should be paid today to have US$ 13,428 in 10 years’ time. Dividing the amount by 120 months, a monthly contribution of US$ 43.14 should be made.

Total cost considering a 2.5 % inflation rate per year in 15 years

			Total (US$)
Total Cost	10,740		US$
Inflation rate	2.5% per year
Inflation cost per annum	10740	2.50%	268.5
Inflation cost for ten years	268.8	15	4032
Total amount	13428	4032	17460

Monthly savings for US$ 17460 in 15 years

To attain the US$ 17460 after 15 years, the tourist must know the present value of monthly savings. The tourist intends to make monthly payments. Therefore, this investment should be calculated as an annuity (Cover, 2009). The present value interest factor a 10% annuity over a period of 15 years (180 Months). Monthly savings can be calculated as shown below;

Present Value (PV) = Future Value * Present Value interest Factor (PVIF) 10%, 10 years

= US$ 17460 * 0.2472

= US$ 4,316.11

An amount of US$ 4,316.11 should be paid today to have US$ 17460 in 15 years’ time. Dividing the amount by 180 months, a monthly contribution of US$ 43.14 should be made US$ 23.98.

References

Cover, F. (2009). Managerial Judgement and Strategic Investment Decisions (Reprint ed.). Heinemann: Butterworth-Heinemann.

Deisser, A.-M. (2016). onservation of Natural and Cultural Heritage in Kenya. London: UCL Press.

Spilsbury, L. (2011). Travel and Tourism. New York City: The Rosen Publishing Group, Inc.

TourTheTropics.com. (2018, August 17). The Top 25 Tourist Attractions in Kenya. Retrieved from https://tourthetropics.com/guides/top-tourist-attractions-kenya/