The January terror attack at Dusit hotel and office complex in Nairobi may temporarily affect the revival in tourist arrivals and guest nights that began in 2018, the PricewaterhouseCoopers (PWC) have disclosed in a report.
According to the report, terrorist attack may lead to a drop in tourism and guest nights for the remainder of the year.
“Thereafter, assuming confidence in overall security is not impacted, Kenya’s appeal as an adventure destination, with more flights, and new hotels will continue to grow,” noted the report released in Nairobi on Tuesday.
According to PWC, growth in air connectivity, visa-on-arrival policies, and a strong economy can again become a significant driver of tourism and business travel assuming a period of security.
“Kenya will benefit from growing demand for experiences and adventure, with mid-scale hotels being the main driver, but growth in Airbnb and the shared economy will cut into the hotel market,” noted the ‘PWC Hospitality outlook: 2019-2023.”
The outlook provides an overview of how the hotel industry in South Africa, Nigeria, Mauritius, Kenya, and Tanzania is expected to develop over the coming years. It details the key trends observed and discusses the challenges facing the sector, as well as considering its future prospects.
Overall room revenue in South Africa, Nigeria, Mauritius, Kenya and Tanzania rose 7.4percent in 2018, up from the 1.9percent increase in 2017, principally reflecting a 28 percentage point turnaround in Kenya, a 15.4 percentage point turnaround in Tanzania, as well as a 7.2 percentage point improvement in Nigeria.
Mauritius, according to the report, continued to grow at double-digit rates in 2018 but room revenue growth in South Africa fell to only 0.5percent.
JK/abj/APA