Kenyan Hotel Occupancy Hits 70% In 6 Months

The performance of hotels in the first half of 2022 has significantly improved as the sector gradually recovers from the devastating effects of covid 19 pandemic.

For instance, at the coast, hotels recorded an occupancy rate of more than 70 percent during the period under review, compared to the same period last year. The occupancy rate increase has been attributed to the increased number of foreign investors in the coastal regions.

The number of foreign investors has reached a high of 430,000 in the first half of 2022, compared to about 220,000 visitors recorded in the same period last year. This comes as a boost to hotels in some towns in the coastal regions including Diani, Watamu and Kilifi, and Malindi.

Despite the improved performance, The Kenya Association of Hotelkeepers and Caterers Coast executive officer Sam Ikwaye says the disruption of the school calendar occasioned by the covid 19 pandemic and the political activities in the country have affected leisure in the region.

Even though the numbers are said to be satisfactory, the sector would have recorded a better performance if it were not for the occurrence of activities including the Russia-Ukraine war, as well as the inflation in most tourism markets.

The Russia-Ukraine disruption rounded off the projection by the ministry of tourism that the number of Ukrainian tourists would increase to at least 5,000  by May 2022.

In November last year, the county government of Mombasa entered into a tourism agreement with 22 major cities in Ukraine, intending to increase the number of tourists to the Kenyan coastal hotels to boost returns in the tourism sector.

The high cost of living is also a major concern as it has affected revenue from Kenya’s key tourism markets, hence the dwindling returns. Revenue from key tourism markets such as the United Kingdom is expected to decline as a result of the high cost of living.

Last year Kenya recorded more than 53,000 tourists from the United Kingdom, making it the fourth top market region for tourism. The USA was the top source market for tourists with 136,981 arrivals. Uganda came in second with 80, 067 arrivals followed by Tanzania and UK with 74,051 and 53,264 arrivals each.

International visitor arrivals stood at 870,465  from 567,848 in 2020, with Jomo Kenyatta International Airport being the leading entry point.

The soaring prices of basic commodities in countries such as the United Kingdom are said to prompt reduced leisure travel cutting Kenya’s revenue.

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