The Kenyan hospitality sector is expected to record improved performance in 2019 supported by improved air transport operations and continued marketing of the country as an experience destination.
Cytonn investments through their latest review of Q1 of 2019 noted that other factors that could boost the hospitality sector in Kenya include improved security and political stability, which have continued to boost tourists’ confidence in the country and thus making it a preferred travel destination for both business and holiday travelers.
The Kenya National Bureau of Statistics (KNBS) released their December 2018 issue of Leading Economic Indicators 2018, highlighting a 13.0 percent growth in the number of tourist arrivals at the Jomo Kenyatta International Airport (JKIA) and the Moi International Airport Mombasa from 0.86 million during the period between January and November 2017 to 0.97 million during the same period in 2018.
As per the Cytonn Market Outlook 2019, the company expects the number of arrivals to increase to 1.5 million during the same period in 2019.
“However, the sector experienced a setback earlier in the year following the Riverside-based Dusit Hotel terrorist attack, that saw the United Kingdom and United States (US) state department caution its nationals to be vigilant in Nairobi, resulting in fewer arrivals during that period. However, with improved security measures in the country, we expect continued demand for hospitality services, with serviced apartments expected to record relatively high occupancies of above 80.0% in 2019, and hotels at approximately 55 percent,” read part of the report.
