The Kenyan hospitality sector continues to attract global hotel chain companies as they seek to expand and secure market share in the hotel industry, where players continue to cash in on leisure and business travel, creating a high demand for accommodation.
At 10 percent contribution to the country’s GDP, the hospitality sector takes up a major fraction of the economy, and foreign exchange – second only to Agriculture. Kenya’s T&T total GDP contribution falls notably higher above the continent’s average score of 8.1 percent.
According to the weekly report by Cytonn Investments, the South Africa’s hospitality group, City Lodge, announced its plans to open a 171-room hotel at Two Rivers Mall in November 2017.
This hotel will be an addition to its existing exposure in the local market through Fairview Hotel on Bishop Road, Upper Hill, Nairobi and Town Lodge along 2nd Ngong Avenue, Upper Hill, Nairobi.
In addition, hotel revenue growth in Kenya is projected to increase by 3.5 percent, 6.2 percent and 8.9 percent in 2017, 2018 and 2019, respectively, according to PWC’s African Insights Hotels Outlook: 2017-2021 Report.
Supporting this growth are a number of factors, namely:
- Aggressive marketing by Kenya Tourism Board, which has helped restore confidence in key international markets such as Europe, USA and the new emerging markets in Africa and Asia as well as the domestic market. As part of marketing, the industry has also embraced e-commerce, which has translated to more booking convenience,
- Increase in a number of local tourism and international tourism arrivals. According to Kenya National Bureau of Statistics’ Economic Survey 2017, the country experienced an increase of 13.5 percent in international visitor’s arrival in the year 2015/2016, with the number of local and international conferences expanding by 17.4 percent and 4.1 percent, respectively, mainly attributed to improved security in the country and aggressive marketing in the domestic and international markets,
- Conference tourism (MICE), which is valued at 30 Billion shillings, with hotels accounting for 60 percent of this total value, according to the Kenya Hospitality Report, 2017 by Jumia Travel, and Kenya ranking as the second best destination for conference tourism in sub-Saharan Africa after South Africa by the International Congress and Convention Association (ICCA).