TPS Eastern Africa posts KSh 230.8 Million HY loss, but optimistic in 2017

TPS Eastern Africa (Serena) has posted Ksh2.62 billion in its Half Year results ending 30 June compared to Ksh 2.66 billion in 2016.

Its half year loss before income tax recorded Ksh 230.8 million compared to a loss of 74.2 million last year.

“During the first half of 2017, the domestic and to some extent, the foreign leisure tourism segment in East Africa witnessed a slow but encouraging growth in business levels compared to last year,” Dominic Ng’ang’a, the Company Secretary says.

According to the company, its diversified portfolio in the region recorded satisfactory growth in the corporate segment, though ‘was at a slower pace than expected’ due to the activities revolving around the elections in Kenya.

Ng’ang’a further says there is increased interest in destination Kenya and current indications for the Kenyan safari segment look much healthier than the corresponding periods in the past  two years.

He also cited that the the Kenya coastal region continues to record low materialisation from the foreign leisure segment as a result of ‘lack of charters and international scheduled flights into Mombasa from source markets.’

“Current forecasts indicate that the outlook for the second half of 2017 for Serena Tanzania and Serena Uganda is promising and the gradual turnaround for tourism in destination Kenya is expected to be more positive than last year, “ says Ng’ang’a.

“Management looks at the second half with much optimism and with our tested and highly successful business model, the company will be insulated from revenue erosion,” he adds.

Read: 

• Nairobi sees 22pc boost in domestic air travel capacity
• Tourism in East Africa: Top Ten Tourist Destinations and why Revival in the Sector is Needed

TPS Eastern Africa  manages 15 hotels and resorts across East Africa under the Serena brand name.

The Company has appointed Nooren Hirjani as its Chief Financial Officer replacing Abdulmalek Virani who has retired effective August 16.