Kenya | Tourism Sector

[èđđeůx]

Cabinet okays sale of stake in top hotels
Capital FM

The Cabinet on Thursday approved the sale of its stake in two international hotels as it seeks divest its interest in the hospitality industry.

A Cabinet meeting chaired by President Mwai Kibaki on Thursday gave consent to the sale of the Kenya Tourist Development Corporation’s shares in the Intercontinental Hotel and the Hilton Hotel.

They also approved offloading of its shareholding in Mountain Lodge Hotel.

The shares in the hotels are held on behalf of the government through the Kenya Tourist Development Corporation, a development fund that finances construction of hospitality facilities on concessionary terms.

The government has a 40.7 percent stake in the Hilton, 33.8 percent in Intercontinental Hotel and 39.11 percent in Mountain Lodge.

Proceeds from the sale are to be ploughed back into KTDC’s development kitty to fund other projects in the tourism sector.

The privatisation process of hotels has been an ongoing affair, with the government on several occasions failing to agree to sell its shares. It had earmarked 13 hotels from which it intended to divest its interests.

In March, Tourism Minister Najib Balala indicated that the ministry had come up with a new mechanism for the Cabinet to consider over the privatisation process. The proposal sought to exit investment in hotels, which had matured and where the government was not the majority shareholder.

This would give the government time to decide on an exit strategy from the remaining hotels.

Other hotels the government has an interest in include Golf Hotel in Western, Mount Elgon Lodge, Sunset in Kisumu and The Ark Lodge in Nyeri.

Mr Balala said for the remaining hotels, the government would get a strategic investor to make them competitive.

“Our plan is to consolidate all our shares to one big partner, get a strategic partner to manage the hotels so that they are up to international standards,” Mr Balala said on March 7.

[èđđeůx]

Kenya Coast hoteliers deny pollution claims
eTurbo News

The Kenya Water Resources Management Authority Chairman faced angry reactions from the coast branch of the Kenya Association of Hotelkeepers and Caterers following his allegations that over 90 percent of beach resorts were letting raw sewage "escape into the sea." Individual hoteliers and association leaders denounced the statement as misleading and lacking any facts, considering that each and every resort was operating within the guidelines of the National Environment Management Authority (NEMA).

Hoteliers say they hav been following the guidelines as per their licensing conditions, while in turn accusing the water authority and the Mombasa water company of not expanding their sewerage network. This lack of expansion is causing hotels and resorts to use intermediate storage pits, which require frequent emptying by special vehicles and transportation to the municipal water and sewerage works.

While a few hotels have set up their own sewerage treatment plants, others rely on municipal services to evacuate their sewerage in accordance with regulations. this was confirmed by contacting regular sources in Mombasa, which also condemned the broadside against hotels and resorts.

Hotel association Chair Mohamed Hersi said: "Hotels go through Nema certification before they start operations. These careless statements made through the media are damaging the tourism industry, because tourists worldwide read them and may get a different picture."

A source from the tour operating fraternity also added his voice by saying: "Some of our officials shoot off their mouth without thinking what damage they do. Overseas tourists look at destinations and find out about eco friendliness and green footprints. Making such allegations that over 90 percent of our beach resorts let sewerage flow into the ocean can destroy Kenya’s reputation abroad very quickly.

"Already travel agents abroad have picked [up] the story and are asking if this can be true. The Water Authority chairman must withdraw these wild allegations if he cannot produce evidence, and there is no such evidence, I tell you, that over 90 percent of our resorts are non-compliant."

[èđđeůx]

Western Kenya struggles to meet high demand for hotels as travellers increase
BDA

It is Friday in Kisumu town and chances of getting accommodation if you hadn’t booked in advance are slim unless you opt for the dingy rooms in the outskirts of the city.


This is the new face of Western Kenya where demand for houses and hotels has far outstripped supply with investors rushing to cash in on the yawning gap.

Some kilometres away from the town, Bruce Madetea has built the new Sosa Cottages, a high-end 58 bed capacity resort in Gambogi, Vihiga County. This is not the only new hotel, there are a few others under construction.

“There is great potential in Western Kenya and the market is ripe,” Mr Madetea said.

“There is an urgent need for the establishment of medium to high-end hotels in the region. Many times we receive visitors, but they cannot find proper accommodation and this experience puts them off,” he said.

According to real estate agents in Western Kenya, demand for accommodation and business travel packages is far outstripping the current supply, undermining the region’s marketing drives that seek to raise its profile as a business and leisure travel destination.

However, analysts say high barriers to entry coupled with poor regulatory frameworks are hindering investment in hotel business.

Over the last two years, tourists numbers have risen with airlines flying to the region increasing.

Among the airlines on this route include Fly 540, Jetlink, Kenya Airways, East African Airlines and Aircraft Leasing Services, a move that has made possible for business travellers and tourists to easily access the region. In addition to these, there are some transport firms and individuals who operate chartered flights.

According to Joseph Okumu, the Kisumu airport manager, over 360,000 passengers went through the airport in 2009. “This number increased by 50 per cent last year to stand at 540,000,” he said. “Most of these arrivals were investors, eyeing business opportunities in the Western region,” he said.

This number is set to increase further when the upgrade of the airport to international standards is finally completed in the next few weeks.

For operators who are already established in the region, however, business is booming and the available capacity has been stretched to the maximum.

Most of these operators are attributing the growth to an increased uptake of domestic tourism that has seen a surge in more local visitors.

According to Dr. Hezron McObewa, the owner of Le Savanna Resort, earnings from domestic tourism have greatly boosted the establishments in the region.

“Nowadays we see an increased awareness and tendency of Kenyans to take expeditions to far districts and counties outside their locations,” he said. The region is poised to win big with the opening of the Kisumu International Airport which is expected in the next few weeks. The hotel and tourism industry is expected to be one of the greatest beneficiaries of the new facility.

[Kenguy]

Its time for proper resorts and marinas around the lake. I understand KQ has increased the number of daily flights to Kisumu.

[kijana]

and now with the international flights soon to make its way to kisumu, who knows what could happen, but its good for kisumu, because it will act as a motivation to modernize and improve infrastructure.

[Mkenyasili]

Way to go Kisumu, this will surely open Western Kenya to more investments.

[èđđeůx]

Kenya tourist arrivals hit record high
BDA

Kenya’s tourism sector is on the road to solid recovery with an impressive record high arrivals in the first half of 2011.

Statistics released by Kenya’s ministry of Tourism indicate that 549,083 tourists visited Kenya in the first six months of 2011, surpassing the previous high hit in 2010 by 13.6 percent. (See Tourism earnings pick up as global recession eases)

Visitors from Britain led the way accounting for 14.3 percent of arrivals, followed by the United States on 9.3 percent and then Italy, Germany and India.

The tourism industry is projecting to earn Sh81 billion this year on the back of an expected increase in tourist arrivals helped by the ongoingrecovery of key source markets, players said.

Last year, the tourism sector fetched the country earnings of Sh73.7 billion but fell far below the Sh100 billion target which players said was exaggerated.

While releasing last year results, Tourism minister Najib Balala said the industry had adjusted its targets to reflect some of the challenges in the international market.

[èđđeůx]

Kenya expects 1.2 million international tourists in 2011
eTurbo News

International tourist arrivals are expected to hit a record 1.2 million by the end of the year.

This has been bolstered by the soaring number of holidaymakers from emerging markets of Eastern Europe and Asia.

Last year, tourist arrivals were the highest ever at 1,095,945 compared to 952,481 in 2009.

Hotels at the coast, lodges and camps in Maasai Mara and the Tsavo National Park are packed with guests as holidaymakers pour in for beach, wild safaris and conference tourism.

The country has also gained popularity with the arrival in recent times of international celebrities like Real Madrid coach Jose Mourinho, US tennis player Serena Williams, Hollywood stars Bradd Pitt and Angelina Jolie, the Prince William and Kate Middleton, among others.

Mr Ndegwa noted that the board’s diversification of source markets have paid dividends as a large number of tourists arrive from China, India, Middle East, Russia and South Africa.

[èđđeůx]

Kenya park fees rise
eTurbo News

Visitors to Kenya’s national parks now pay US$80 per person, per day to enter into the prime national parks across the country, as a new set of tariffs became effective earlier in the week.

The new rules appear to have discontinued the low and shoulder season tariffs of US$60, and raised the year-round fees to the high season level of US$80, a move not generally welcomed by the tourism fraternity.

"Our recovery is still ongoing; there are many factors out there which can set us back this year. We are ahead in arrivals compared to 2010, but there are storm clouds again over the fate of the world economy we cannot ignore. I personally feel that this change in tariffs with immediate effect was not in the best interest of the tourism industry; they should have consulted, and if at all, given long notice of the rise in fees to cater for it in quotations and our pricing," said a regular source from Nairobi in an email communication overnight.

Other stakeholders dismissed the claims by government that Kenya Wildlife Service (KWS) needed to raise revenue, citing the favorable exchange rate development. "Last year, KWS got a little over 70 Kenya shillings for the dollar, and now they get over 90 Kenya shillings for the dollar - that is almost 30 percent more they now get into their accounts. Still they raise their tariffs with no notice, which is bad practice and makes a mockery of their ‘partnership’ with the private sector," wrote another source from Mombasa.

[èđđeůx]

Conference tourism set for major takeoff
The Standard

The much-hyped Mombasa International Conference Centre might be in operation by end of next year.

There are also plans to put a conferencing facility in Kisumu, whose proposed name is Lake Victoria Conference Centre.

These are among the plans aimed at further tapping into conference and business tourism, which is among the growing segments the sector.

Experts say the two centres are part of plans to diversify tourism product offering in the country that has in the past been termed as tired and no longer attractive, especially for repeat travellers.

Tourism minister Najib Balala said Government had already undertaken preliminary studies for the 5, 000 capacity centre in Mombasa and is now moving on to do an in-depth study to establish the cost of the facility.

The centre will be put on a 15-acre piece of land that has been donated to the Government by cement manufacturer, Bamburi Cement.

It is aimed at increasing the number of tourists to the coastal city by diversifying its product offering by fusing its current status as a holiday and beach destination with conference and business tourism.

The Kisumu facility is still at its initial stages.

Balala said the proposed name—Lake Victoria Conference Centre—would appeal to a larger clientele that is familiar with Lake Victoria as opposed to Kisumu as well as market the facility as a regional centre.

[èđđeůx]

Cancellations see Lamu tourism take a big hit
eTurboNews

Information received from sources in Kenya speak of a wave of cancellations for beach resorts in and around Lamu, arguably accelerated by a directive from the tourism ministry "not to close" establishments even when occupancies drop to near zero, which sent further jitters down the spine of both the tourism industry and potential clientele.

Airlines flying to Lamu on scheduled services from Nairobi’s Wilson Airport and operating charters from Mombasa and Malindi have also been watching the developments with apprehension. While the global media hounds are presently still flocking to Lamu, the airlines do depend on a regular flow of tourists, and with this gone, they will have to take a close look at both aircraft size and the number of flights they can viably operate, thus expanding the fallout of the two abductions from the hospitality sector to the aviation industry.

Tour operators in Mombasa are also seeing a massive drop in demand for day visits to Lamu following the wide publicity the travel embargoes by diplomatic missions in Nairobi have received, a trend aided by clauses in travel insurance packages that trips to such places might not be covered under the insurance policy and might, in fact, void it altogether.

Major layoffs are now looming on the horizon for resorts in and around Lamu, as well as for those further south along the coast but remotely located over fears that more abductions could be planned by militants in Somalia, if not worse. Such cowardly action is aimed to hit Kenya’s thriving tourism industry in a "proxy retaliation" against Kenya’s support on many levels for the Transitional Federal Government in Mogadishu and their determined fight against Islamic militancy in the region.

[Malaika254]

They really need to stem piracy else our tourism sector in the coastal area is doomed.

[èđđeůx]

Kitili Mbathi appointed Kenya Tourist Board Chairman
eTurboNews

Well known banker, and during his successful time in Uganda, CEO of Stanbic Bank, a close acquaintance of this correspondent, Kitili Mbathi was yesterday afternoon introduced to the public as the new Chairman of the Kenya Tourist Board (KTB) by Najib Balala, Minister of Tourism in the Kenya government.

Kitili succeeds Michael Joseph, who prematurely left this appointment within half a year after bagging a highly lucrative World Bank appointment, leaving KTB in the proverbial lurch.

KTB more recently also saw new board members being introduced, beefing up competence at the board level, and some of the new faces like Serena’s CEO Mahmud Janmohamed, Mombasa Air Safari’s CEO Capt. Johnny Cleave, and widely-respected audit guru Abdul Samji from Mombasa are likely to bring a fresh wind and professional perspectives to the organization during their term of office, fully understanding what it takes to market Kenya’s attractions abroad.

Kitili’s appointment comes at a trying time for Kenya tourism, suffering of negative publicity over the abduction of two foreigners from remoter parts of the coast – far away from the mainstream tourism resorts of Malindi and Mombasa – but it will take a combined effort of persuading the overseas tour operators that security measures now finally taken will "stick" and not sizzle out all too soon, before the Somali situation has been brought under control.

[xJamaax]

Originally Posted by Malaika254

They really need to stem piracy else our tourism sector in the coastal area is doomed.

And the borders with Somalia too!

[èđđeůx]

some good news....
Tourist bookings in Coast rise despite Lamu safety fears
BDA

Hotels in Mombasa and the south Coast have recorded impressive tourist bookings following security concerns in Lamu.

Hotel managers said the sector was not hit by cancellation of bookings by international tourists after Somali gangs kidnapped a British couple and a French woman in Lamu over the past month.

On Wednesday, diplomats said the French Woman had died in the hands of the kidnappers, believed to be al Shabaab militia.

“Some hotels in Mombasa and the south Coast have recorded impressive bookings despite the Lamu security worries,” said Mombasa and Coast Tourist Association chairman Mohamed Hersi.

Mr Hersi, the general manager of Sarova Hotels and Lodges at the Coast, said most hotels had bed occupancy of between 70 and 90 per cent. The tourist high season peaks during Christmas and New Year holidays.

He said hotels were now marketing their services and Kenya as a destination through social websites such as Facebook.

“New bookings are trickling in as our customers in the West know that Kenya is safe for holidays and they understand that cases of kidnappings can happen anywhere in the world,” he explained.

He, however, called on the government to heighten security in the tourist destinations to root out insecurity.

“When tourists come on holiday their safety is of paramount importance. The government should therefore accord its people and visitors adequate security for sustainable tourism,” he said.

In the south Coast, Baobab Beach Resort director Bimal Thaker said the hotel had a 90 per cent bed occupancy with 85 per cent being guests from Europe. Mr Bimal, however, added that some visiting tourists were still worried about their safety and called on the government to ensure that no more cases of kidnappings happen in the country.

“We have a lot of international tourists on holiday an indication that visitors feel secure,” he said.

“We support the government’s efforts to root out insecurity in Lamu.” Serena Beach hotel general manager Tuva Mwahunga said the hotels’ bed occupancy had improved from 69 per cent last month to 74 per cent this month.

Mr Mwahunga added that this was an indication that the industry was still vibrant despite the Lamu worries.

However, he said, some customers had called the hotel to inquire about the security situation. Travellers Beach Hotel marketing manager Carollyne Kurumei said the hotel had bed occupancy of 71 per cent compared to 60 per cent last year.

Ms Kurumei added that the hotel had 40 per cent of international tourists while the rest were from the East African region. Last year, the country recorded the highest number of international tourists ever at 1,095,945 compared to 952,481 in 2009.

[xJamaax]

The number of charter airlines from Europe flying to Moi International Airport in Mombasa has reached 32, raising prospects for more arrivals from the leading tourism source market.

Airport manager Yatich Kangugo said 29 chartered aircraft plied the route last year when the airport handled 1.4 million passengers.

“We expect the number of European airlines to hit a record 35 by the year end as more new airlines have shown interest in bringing passengers to Mombasa,” he added. The chartered airlines usually make weekly flights to a destination.

Mr Kangugo said the flights could increase the arrivals by 100,000.

The airport has a capacity of 2.5 million passenger traffic per year.

The latest addition is Yes Airways of Poland, which made a maiden flight from Warsaw to Mombasa with more than 200 passengers.

Finair from Finland and Novair from Sweden are expected to make inaugural flights to Mombasa between next month and December.

Alitalia from Italy is also expected to make a comeback by year end, followed early next year by Transavia from Russia and 1time airline from South Africa.

Ethiopia, Rwanda and Uganda airlines have scheduled flights to the tourism hub as well as Precision Air from Tanzania. Kenya Airways, Air Kenya, Jet Link, Fly540 and Mombasa Air Safari have daily flight schedules to Mombasa.

“The entry of new airlines from South Africa, Poland, Finland, Sweden and Russia indicates that the number of passenger traffic is on a high,” said Kangugo, adding that the airport looks to attract cargo airlines to boost trade.

=>Business Daily

[desert burner]

Nairobi’s status as a conference and business travel hub has attracted six new top-end hotels, promising to add 800 beds to the circuit that has been grappling with limited capacity.




Hemingways Collection, SAMCO Holdings, Simba Group, Rezidor Group of Hotels, and the Red Cross are some of the investors who are putting up new properties that would add at least 800 beds into the market.

The new hotels are looking to cash in on the growth in the tourism that has led to an increased demand for bed capacity in the city, mainly driven by conference and business.

“The demand is high in Nairobi,” said Mr Mike Macharia, the chief executive of Kenya Association of Hotel Keepers and Caterers. “The increased capacity is welcomed, especially in the three to five star qualities.”

Investors in the sector are targeting conference and business travellers as well as leisure tourists who come into the country via Nairobi on their way to other tourist destinations.

Nairobi has become a major hub in the region connected by international airlines. Multinationals have in the past couple of years shown interest in the city setting up offices in Nairobi, raising its profile as a major business destination.

Business travel accounts for about 20 per cent of all arrivals in the country, second to leisure, which contributes 55 per cent.

Kenya Tourist Board statistics show the number of visitors increased by 32 per cent to 549,083 in the first-half of the year.

Earnings grew by 32 per cent during this period to Sh40.5 billion.

This year is expected to be the best for the sector despite the current security fears that has seen an international conference cancelled.

Share This Story

6Share




The new facilities are expected to increase competition in the market, even though players say there is enough demand to sustain the new properties. The current occupancy hotel rate in the city ranges between 60 and 80 per cent, said Mr Macharia.

“Nairobi still has room for more.”

The EKA Hotels, by SAMCO Holdings, will put into the market 170 rooms in February 2012 and four conference rooms.

The property, which is betting on its location on Mombasa Road to attract business, seeks to tap local conference market and business travellers.

Mr Charles Kikuvi, the EKA Hotel’s sales and marketing manager, said that conference business is expected to account for about 50 per cent of its business. The hotel also targets leisure travellers on a one-day stop in the city.
“Demand is increasing as the city grows,” he told the Business Daily at the hotel’s construction site.




The Belgium based Rezidor Hotel Group is expected to open the five star Radisson Blu in Upper Hill early 2013, according to its website. The hotel, which is owned by Elgon Road Development, will put in the market about 240 rooms.

Rezidor this year signed an agreement with AMS Hotels to build a 126-bed boutique hotel in Westlands.

The Park Inn by Raddison is expected to open its doors towards the end of 2013.

“Our business is managing hotels.

In line with our strategy over the past 10 years, we have completely divested ourselves of real estate and own no properties,” said Mr Andrew McLachlan, the Rezidor’s business development vice president for Africa and Indian Ocean Islands, earlier in the year.

Hemingways Collection, whose property in Karen is expected to open in August next year, and will add 45 luxury suites in the market.

The company, which owns other luxury properties across the country, is looking to add the city unit to its circuit.

Stream of income

In 2008, the Red Cross opened up Red Court Hotel to boost its stream of income and is looking at opening a second unit, The Boma, in the next few of months. The property will have 148 beds.

Share This Story

Share




Simba Group, which is expanding its business into the hospitality industry, is set to invest no less than Sh2 billion in a five-star flagship property of about 200 rooms.

The hotel, on Chiromo Road, is expected to open in the first quarter of next year.

Currently, the key players in the city’s hotel industry are Intercontinental Hotel, Fairmont Norfolk Hotel, Nairobi Serena Hotel, Hilton Hotel, Safari Park Hotel, Windsor, Laico Regency, Sarova Stanley, Holiday Inn, Nairobi Safari Club, Sarova Panafric and Panari Hotel. With the newer ones: Tribe, Sankara, Ole Sereni, and Crowne Plaza already recording growth in business.
http://www.businessdailyafrica.com/C...b/-/index.html

[Rongai]

Nation to Track Tourism Revenue

http://allafrica.com/stories/201111220391.html

The debate on how much revenue the tourism industry contributes to Kenya's economy is likely to end if a proposal on the development of a data collection system gets funding.

The country has presented a proposal to the Indian Ocean Rim Association for Regional Cooperation (IOR-ARC) that concluded its seating in Bangalore, India, last week.

In the proposal, Kenya is seeking support in setting up a system to collect data in the tourism industry using the Tourism Satellite Account (TSA) instrument.

TSA is a United Nations World Tourism Organisation (UNWTO) tool developed to help countries measure contribution of tourism to an economy.

Marketing campaign

The Kenyan case was presented to the 11th Council of Ministers of IOR-ARC forum by Prof Festus Kaberia, Kenya's High Commissioner in India.

Once deployed, the system can capture all the aspects of tourism activities with a view of bringing out the value of the sector's contribution to gross domestic product (GDP).

"It provides an accounting framework that adopts concepts, classifications, and definitions that are internationally acceptable by a wide range of institutions that deal with tourism.

"It is also recommended by the United Nations Statistical Commission in the System of National Accounts (SNA 1993)," Prof Kaberia told Smart Company in Bangalore.

TSA comprises a set of tables which are filled through undertaking in-bound (international tourists), out-bound (domestic tourists), and tourism business surveys in an economy.

Increased income

Data on tourism, Prof Kaberia said, has to be collected through a series of surveys, processed, and analysed to give tourism information.

But as Kenya seeks to streamline her tourism records, this could also strengthen its tourism base if its marketing campaign makes major forays into the Indian sub-continent, where millions of people go overseas for leisure.

According to statistics, 11 million Indians, mainly middle-income earners, travel outside the country for leisure.

The spokesman for India's Ministry of Foreign Affairs, Vishnu Prakash, said on the sidelines of the meeting that with the increase in incomes for millions of the middle-class population, there has been a significant increase in the number of people travelling outside as tourists.

"We have been witnessing major economic growth in the past few years and we are projecting that by 2030, India's economy will grow by over 10 per cent and make us a moderately developed country.

"With the current figure of middle-income earners standing at 200 million, we are expecting the number of tourists from India to increase considerably, thus providing leading tourist destinations, especially those within the Indian Ocean rim, an opportunity to tap into," said Mr Prakash.

According to India's High Commissioner, Mr Sibabrata Tripathi, Kenya currently receives only 20,000 tourists from India, a figure he says could increase significantly if marketing also targets the East, which is emerging as a major source market for visitors.

Marketing the nation

The envoy said the advantage that Kenya has is the historical ties and business relations between the two countries.

"Indian tourists are getting attracted to Kenya, especially with the game parks, but this now calls for fine tuning of the packages that include food menus to attract Indian guests.

"Kenya also needs to pump resources in marketing the country to non-traditional destinations such as Europe and America because growth of economies in Asia has opened windows for increased overseas travel," said Mr Tripathi.

[Kisumu Ndogo]

Iam very impressed by the developments on this front.

[èđđeůx]

Kenya's tourist numbers up 16 percent
eTurbo News

The number of tourists visiting Kenya in the first nine months of this year rose 16 per cent to 1.04 million, as compared with the same period a year ago, Tourism Minister Najib Balala has said.

The minister also said that the estimated tourism receipts for the period ending October closed at Sh81.96 billion as compared to Sh56.72 billion during a similar period last year, an increase of 44.4 per cent over last year.

"The year 2011 is expected to be the best year in tourism. Total arrivals for January to October by air and sea closed at 1,039,852 compared to 896,228 in the same period last year," he said.

The minister attributed improved tourist arrivals to ongoing efforts to diversify tourism markets and partly to depreciation of the shilling against the dollar, which made Kenya destination more affordable.

He, however, said Europe remained the main regional source market during the quarter with a market share of 47 per cent.


The United Kingdom maintained the top position in the market share terms, with 15.8 per cent of all inbound arrivals by air and sea followed in the third position by Italy at 7.5 per cent.

Regionally, Uganda has maintained its lead in the arrivals from Africa, recording 36,030 inbound visitors, 36.5 percent growth compared to the same period last year.

Following closely was South Africa that recorded 31,355 arrivals, a 13.5 per cent growth compared to the same period last year.

Tanzania came in third place, with 28,435 arrivals, a 11.3 per cent growth.


Balala said he expects tourist numbers to reach 1.3 million by end of this year.