Kilimanjaro International Airport records Spectacular Growth in Revenue, Traffic



By ADAM IHUCHA
The Kilimanjaro International Airport (KIA) has recorded a spectacular growth in revenues, thanks to an increase in passengers and flight movements in the year ending October 2013.

Revenue collection at KIA, an aviation hub for flora and fauna rich Tanzania’s northern tourist circuit, has soared by 22 percent in the period under review.

In real terms, the earnings at the facility has shot up from Tsh 12.99 billion ($8123,554) last year, to a record Tsh 15.9 billion ($9.92 million), the figures pegged on October to October financial year basis show.

Bakari Murusuri, Director of Finance and Corporate Affairs at Kilimanjaro Development Company (KADCO), a state-executive arm, entrusted to run KIA, says that the revenue jump was a result of an increase in passengers using the airport by 25 per cent.

“Passengers statistics from January to October for the year 2012 and 2013 are 550,264 and 687,525 respectively which reflects a growth of 25 percent” Mr Murusuri says.

The airlines operated at the airport for the year 2012, were 16, of which 10 were international scheduled, whereas two domestic scheduled and four non-scheduled airlines.

In year 2013 there were 18 airlines operating at KIA, eleven out of them were international airline operators, two domestic operators, and five non-scheduled airlines.

KADCO Business Development Manager, Christine Mwakatobe projected 10 percent growth in business in the next year ending October 2014, thanks to the ongoing overseas promotion blitz.

If all goes well, KIA anticipates raking in Tsh 17.5 billion ($10.94 million) in 2014, up from Tsh 15.9 billion ($9.92 million) in 2013, a 10 percent growth rate.

No wonder KIA in the period under review won two international industry prestigious awards.

According to KADCO Managing Director, Mattijs Smith, KIA was an overall winner of the Africa routes marketing award and the run up award – highly commended in the category of up to four million passengers.

Both awards were awarded by airlines for the exceptional performance in attracting and serving airline customers.

“Due to our successful airline marketing activities, KADCO has been able to attract new airlines, resulting in very high growth of traffic in the year 2013” Mr Smith explained.
However, with increased traffic, demands for customer satisfaction, security concerns and growing competition, KADCO has found it imperative to benchmark itself with pace setting organizations, meeting and overcoming emerging challenges along the way. 

Should plan goes well, KADCO will embark in a major repositioning of KIA mid-next year with an eye to elevate the facility into a truly tourists gateway.

A multi-million-dollars transformation plan will see all runways, apron, taxiways and passenger lounge refurbished in a bid to offer holidaymakers a hassle-free trip to the northern Tanzania’s tourist’s circuit.

Already, Tanzania and its Netherlands counterpart are in final talks for the former to secure a $46.9 million funds from the latter’s Orion Grant Facility.

Mr Murusuri says that a 57.14 per cent of the package is a concessionary loan and the remaining percentage is a grant.

“The real work of repositioning will take off June 2014 and it will take three years.  Idea behind is to give KIA a different outlook” he noted, adding that KADCO for two years now has been running the promotion blitz to the market overseas, seeking to attract major global airlines to operate from KIA. 

He said that during the renovation phase, the runway, taxiways and aprons of the airport would be overhauled and resurfaced.

“A new taxiway will be built to increase the capacity of the airport and the terminal building will be upgraded and expanded to accommodate the growing flow of tourists into Northern Tanzania.” Mr Murusuri noted.

Tanzania Association of Tour Operators (TATO) Acting Executive Secretary, Sirili Akko welcomed the move but said the KADCO should also develop other tourism-related infrastructure and recreation facilities to lure overseas tourists.

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