Positive Global Recognition Boosts Kenya’s Hospitality Sector

A global travel firm, The Travel Corporation (TTC), has listed Kenya as one of the top 10 transformative travel experiences in the world citing the 11-day East African Safari.

“Enchanting East Africa. This 11-day East African safari roams the game rich grassy plains of Kenya’s Maasai Mara and Tanzania’s Serengeti in search of predators and prey. Unique locations and lodging are followed by a blissful seaside stay on the exotic Island of Zanzibar,” noted TCC 2018 #TTCTOP10 list, showcasing several of their most transformative travel experiences.

This move proves the attractiveness that Kenya portrays globally.

Moreover, The United States revised its travel advisory warning against Kenya urging US visitors to exercise caution when visiting but retained its stance against travel to certain parts such as the Kenya-Somali border, Garissa and certain parts of Nairobi such as Eastleigh due to terrorism and insecurity.

This comes after the launch of direct flights to the US from Kenya where Kenya Airways will be operating daily flights to and fro New York and Nairobi, and will see the trip time reduce by about eight hours, to 15 hours from the previous 23 hours.

Read: Kenya Airways into Focus: How the Airline Has Been Performing at the NSE 

It is expected that this step will lead to increased daily tourist arrivals, especially for leisure as the move promotes Kenya as a leading travel destination.

According to the weekly report by Cytonn Investments, the hospitality sector is expected to rebound further as a result of aggressive marketing by the government and consistent media coverage aimed at making Kenya visible on the international stage, improved infrastructure such as the Mombasa ports and the SGR, and improved security measures in the country.

A report by PwC on the Hotel Industry Outlook for African countries from the year 2017 to 2021 noted that in total, 13 new hotels are expected to open by 2021, adding 2400 rooms and expanding the hotel capacity by 13 percent with a 2.5 percent compound annual increase in available rooms over the next five years.

With an increase in flights to Kenya, lower park fees, a stable economy, and ongoing growth in domestic tourism, PwC projects that guest nights will build on their recent momentum and rise at a 4.1 percent compound annual rate over the next five years.

From the report, average room rate growth, a measure of the average booking price per night for hotels, slowed in 2016. This contributed to the rebound in stay unit nights which is the accommodation capacity of a hotel.

However, room rates are expected to grow at moderate rates (projected to average 3.3 per cent annually through to 2021) as hotels look to sustain their recent expansion in the face of growing competition.