Hospitality Sector Remains Stable Despite the General Elections Taking Place

The hospitality sector in Kenya continued to show resilience despite the fact that the country was undergoing an electioneering period.

Last week the Cabinet Secretary for Tourism Hon. Najib Balala announced during a tourism stakeholders’ forum that the Kenyan tourism sector had recovered by almost 18 percent since 2015 with a possibility of a 20 percent increase in tourist arrivals by the end of 2017.

According to the weekly report from Cytonn Investments, Balala noted that hotels in Diani and Maasai Mara had recorded full occupancies on the eve of the election and this is expected to continue due to the wildebeest migration in the Mara; the migration marks the peak season for the sector.

This was affirmed by data from the Kenya National Bureau of Statistics (KNBS), which indicated that between January & May 2017, the number of international visitor arrivals increased by 10.97 percent and 8.5 percent at Jomo Kenyatta International Airport and Mombasa’s Moi International Airport from 288,905 and 35,388 to 320,588 and 238,397, respectively compared to the same period in 2016.

The Kenya Tourism Board Chairman attributed the growth to aggressive marketing, which has helped restore confidence in key international markets such as Europe and the USA and the new emerging markets in Africa and Asia as well as the domestic market.

Cytonn expects bed occupancy to improve supported by the continued marketing, the growing position of Nairobi as a regional and continental hub and the relatively peaceful elections just held, restoring investor and tourist confidence.

To further support the tourism sector, the Kenyan government announced plans to construct a 5.5-billion-shilling cable – car to lift tourists from Mombasa Island to Diani. Diani, which is a popular destination for holidaymakers, has had transport challenges such as congestion at the Likoni channel where travelers rely on ferries to cross from Mombasa Island to the South Coast.

Cytonn noted that the move is a step in the right direction as it will improve the travel experience of visitors leading to an increase in tourist arrivals.

The hotel industry at the coast also received a boost after the announcement of the formation of a new lobby group dubbed “The Tourism Management Company” next year.

The company whose mandate will be marketing the region’s beach destinations shall be owned by private sector players and the government with 70 percent and 30 percent stakes, respectively.