Players want action to fix tourism industry as report shows hope in the future

NAIROBI, KENYA: High taxation and duplicating requirements for developers continues to hurt Kenya’s hospitality industry.

Players in the industry say high taxation especially during low season causes strain on the industry, as major tourism products and services are subject to VAT, therefore forcing dealers to raise prices.

“This does not help especially with declining domestic travel and thinning international arrivals,” says Hilary Siele Manager, Nanchang Hotel in Nairobi.

“Duplicating requirements for developers such as having to adhere to both building and occupational permits also catapults the cost of business operations,” he noted adding that this affects numbers.

The last two years were quite challenging to the hospitality industry due to both external and internal factors including the Ebola outbreak in West Africa, clashes in the coastal region and rampant terrorist attacks.

The industry is however slowly and steadily getting back on track; the lifting of the United Kingdom ban on nonessential visits (July 2015), President Obama’s visit and scheduled conferences by Africa Travel Association are great endorsements on the country’s security which has been a major issue.

To further improve on the fortunes of the industry, Estelle Verdier Managing Director, Jovago East and Southern Africa says there is still room to grow the local tourism industry to match that of inbound tourism.

“Kenyans are still not frequent travelers but there is notable growth in the local tourism sector with a growing number of Kenyans now going to getaway destinations such as Naivasha for weekend trips. You will also find the Kenyan coast fully booked by Kenyans over Christmas; however this is still a nascent trend,” she says.

“It is paramount that travel agents, the hotel industry, and the public sector work together to shed light on many of the unknown destinations; thereby supporting the growth of local tourism.”

She was speaking during the launch of report on latest trends in the hospitality industry by Jovago, an online hotel booking company.

The Jovago hospitality report reveals a major interest in three star hotels for both leisure and business travelers across the listed cities; while WiFi, swimming pools and air conditioning lead on the amenity list respectively.

This aptly reveals that, while most tourists will not necessarily change their desired holiday destination based on price factors, balancing the costs with the amenities provided is a key driver on the hotel of choice.

Diani leads in the search for 3 star hotels at 44 per cent followed by Nairobi at 40 per cent and Naivasha at 38 percent. It’s interesting to note that Nakuru, the epicenter for Rift Valley explorers defies this trend with a 43 percent lead searches on 2 star hotels. Location demand by customer, which basically takes into account the destinations sought after by the Kenyan traveler again points to predominance by Nairobi at 29.1 percent while Diani Beach attracts 2.92 percent of total searches.

The report further outlines the place of Travel and Tourism on the global map, as well as stating both challenges and opportunities in the sector. Of note is the fact that in spite of the difficult years that have led to its current recovery period; tourism still takes lead share in generating employment at 9.2 per cent.