KENYA: Kenya Hotel Performance Drops Compared To Other African Countries

Kenyan hotels recorded an average 48 per cent occupancy last year, trailing the Africa average even as new establishments boosted Kenya’s total bed space amid a rise in tourist arrivals.

A new report by realtors Knight Frank shows that the overall African hotel occupancy rate, as reported by hotel data provider STR Global, was 58 per cent, up from 54.9 per cent in 2016.

Kenya was beaten by Tanzania, which recorded a 54 per cent rate with South Africa posting a 64 per cent rate.

Last year the Kenyan economy was ngatively affected because of politics, which disrupted business in the larger urban centres following disputed over poll results.

Mauritius at 80 per cent and Seychelles at 73 per cent were 2017’s top-performing markets, in terms of both occupancy and room rates.

Both markets are dominated by luxury resort hotels, and have been relatively immune to the security concerns that have impacted resort locations elsewhere in Africa, said the report.

Past data from the Tourism ministry shows the contribution of visitor arrivals from East Africa helped grow Kenya’s overall tourism arrivals to 1.47 million last year, up from 1.34 million in 2016 although the numbers remained well below a peak of 1.83 million in 2011.

Revenue from tourism, one of Kenya’s main hard currency earners alongside tea and horticulture, totalled Sh120 billion for 2017, Tourism secretary Najib Balala said early February.

A report by PricewaterhouseCoopers (PwC), Hotel Outlook 2017, estimates that a total of 13 hotels are set to open in Kenya over the next five years, growing the bed space by over 2,400 rooms.


Tourism Observer