Kenya and Tanzania is expected to see an increase in hotel room revenue of 9.6% and 9.1% respectively, a PwC report has said.
According to the study titled ‘Hotels outlook: 2018-2022’, Kenya will benefit from a rebound in tourism, new hotels, its growing prominence as an experience destination, infrastructure upgrades, and the expectation of political stability.
Kenya experienced a drop in visitors following the national elections in August 2017 but recovery was already seen in December with an increase in visitor numbers resulting in 9.9% overall growth. However, this was not enough to boost overall room revenue, which showed a 13.5% decline in 2017.
“We expect tourist arrivals to Kenya to increase 8.8% in 2018, building on the pickup in December 2017. Going forward, assuming a period of relative stability, we expect tourism to Kenya to increase at a 6.9% compound annual rate, rising to 2.06 million in 2022 from 1.47 million in 2017.” The report stated.
According to Pietro Calicchio, Hospitality Industry Leader, PwC Southern Africa, tourism to the African continent has proven to be resilient in the face of economic and political uncertainty, impacts of droughts and other regulatory changes.
“The opportunities are aplenty for this industry to enjoy further growth albeit at a more modest pace. However, as we continue to see there are also a number of challenges facing each country. This is an industry that is reactive to the smallest change in political, regulatory, safety and sustainability matters.” He said
Tanzania’s hotel room revenue amounted to US$206 million in 2017, a decline of 5.5% over 2016 due to a drop in guest nights.
But the report paints a rosy picture of the economy projecting a growth of 10.2% for 2018.
“The hotels and tourism sectors in each of the countries in our report are all showing signs of continued growth over the forecast period. Tourism remains an important part of each economy. However, the smallest change or disruption can have a fundamental impact on the future growth of each market.” A staatement from PWC reads.
“It is therefore important that investors, hotel operators, tourism bodies and governments continue to work together to grow this important industry and ensure its sustainability so that all stakeholders derive the maximum benefit from it,” Calicchio concludes.
