Budget and Financial Plan for a Vacation Trip in Kenya

Plan your vacation trip to Kenya with this budget and financial plan. The article provides a detailed analysis of the cost associated with visiting Kenya's tourist attraction sites, lodging, food, and other expenses. It also includes the monthly savings required to attain the total cost after 10 and 15 years, considering a 2.5% inflation rate per year.

Running head: BUDGET AND FINANCIAL PLAN 1
Budget and Financial Plan
For a Vacation Trip in Kenya
Name
Institution

BUDGET AND FINANCIAL PLAN 2
Budget and related cost estimations
Unit Average costs
(US$)
Quantities Total
(US$)
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;

BUDGET AND FINANCIAL PLAN 3
a) 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).
b) 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).
c) 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).
d) 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.
e) 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.
f) 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).

BUDGET AND FINANCIAL PLAN 4
g) 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).
h) 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.
i) 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).
j) 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

BUDGET AND FINANCIAL PLAN 5
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.

BUDGET AND FINANCIAL PLAN 6
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.

BUDGET AND FINANCIAL PLAN 7
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.

BUDGET AND FINANCIAL PLAN 8
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/