@BusinessDaily

Kenya hotel sales tipped to rise fast

2 months ago, 9 July 06:19

By: Geoffrey Irungu

Kenya will have the second fastest growing hotel room revenues after Nigeria in sub-Saharan Africa over the next five years, a projection by audit and financial advisory firm PricewaterhouseCoopers shows.

Local hotel revenues are annually expected to grow by an average of 9.6 per cent, rising from Sh39.8 billion last year to Sh63 billion by 2022. Nigeria’s will likely grow by 12.6 per cent during the five-year period beginning this year but the absolute amounts – rising from Sh13.2 billion to Sh34.7 billion in 2022—will remain lower than Kenya’s.

The major reason for the increased revenues for hotels in Kenya is continued rebound in tourism, new hotels, improved infrastructure and political stability.

The analysts also cited the growing prominence of the country as an experience destination, indicating it is able to offer beach, bush and city or urban tourism experiences.

“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,” said PwC in the report titled Hotels Outlook: 2018-2022.

Among the five countries considered in the report, Tanzania was classified as having the third highest annual compounded growth rate at 9.1 per cent over the five-year period.

The report adds to the growing projection of Kenya as a major beneficiary of global tourism with credit rating agency Moody’s having forecast an increase in Chinese tourists to Kenya in a separate analysis released early last week.

The domestic tourism industry recovered in 2016 when earnings rose to Sh99.69 billion from Sh84.6 billion in the previous year. The performance was even better in 2017 when the total earnings hit Sh119.9 billion with hotels alone earning Sh39.8 billion of the amount. In 2015, the total industry earnings had fallen compared to 2014 when they stood at Sh87.1 billion.

W Hospitality Group recently said there are about 20 major hotel brands lined up to locally open shop in the next five years.

Of the 20, at least 14 are set to commence operations by next year. Best Western Group tops the list of the hotels planning to start operations, with six properties under construction.


Read More


Category: business news lifestyle corporate opinion economy markets

Suggested

4 hours ago, 00:17
@StandardMedia - By: Macharia Kamau
Telcos lose control of agents as unregistered SIM cards rocket

Rush for sales sidesteps regulations on customer identification and exposes subscribers to fraud. ...

Category: topnews news business
4 hours ago, 00:17
@StandardMedia - By: Moses Omusolo
Vivo wraps up Engen deal for Sh20 billion

Pact will see firm take over rival’s outlets in eight countries, including Kenya. ...

Category: business news
11 hours ago, 17:19
@DailyNation - By: Lynet Igadwah
Mobile firms given 2 days to switch off illegal subscribers

Mobile operators have until Friday to remove unregistered subscribers and those listed using fraudulent documents from their networks or face fines of up to 0.2 per cent of their annual sales. ...

Category: topnews news business
11 hours ago, 17:08
@BusinessDaily - By: Jenny Lues
It’s time to rethink our expenditure plans

Kenya finds itself at a crossroads. It needs a better future, in terms of health and education, and lives lived. But in our modern world that depends on money, and money is made by business. ...

Category: business news markets economy lifestyle opinion
17 hours ago, 11:37
@DailyNation - By: Constant Munda
Treasury sees growth hitting seven-year high

The imposition VAT on fuel has triggered widespread fears that the economy is bound to deeply suffer. ...

Category: topnews news business
11 hours ago, 17:19
@BusinessDaily - By: Nasibo Kabale
Medics in strike threat over Pumwani saga

Doctors have threatened to go on a countrywide strike if the suspended colleagues from Pumwani hospital are not reinstated. ...

Category: business economy news corporate

@BusinessDaily

Kenya hotel sales tipped to rise fast

2 months ago, 9 July 06:19

By: Geoffrey Irungu

Kenya will have the second fastest growing hotel room revenues after Nigeria in sub-Saharan Africa over the next five years, a projection by audit and financial advisory firm PricewaterhouseCoopers shows.

Local hotel revenues are annually expected to grow by an average of 9.6 per cent, rising from Sh39.8 billion last year to Sh63 billion by 2022. Nigeria’s will likely grow by 12.6 per cent during the five-year period beginning this year but the absolute amounts – rising from Sh13.2 billion to Sh34.7 billion in 2022—will remain lower than Kenya’s.

The major reason for the increased revenues for hotels in Kenya is continued rebound in tourism, new hotels, improved infrastructure and political stability.

The analysts also cited the growing prominence of the country as an experience destination, indicating it is able to offer beach, bush and city or urban tourism experiences.

“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,” said PwC in the report titled Hotels Outlook: 2018-2022.

Among the five countries considered in the report, Tanzania was classified as having the third highest annual compounded growth rate at 9.1 per cent over the five-year period.

The report adds to the growing projection of Kenya as a major beneficiary of global tourism with credit rating agency Moody’s having forecast an increase in Chinese tourists to Kenya in a separate analysis released early last week.

The domestic tourism industry recovered in 2016 when earnings rose to Sh99.69 billion from Sh84.6 billion in the previous year. The performance was even better in 2017 when the total earnings hit Sh119.9 billion with hotels alone earning Sh39.8 billion of the amount. In 2015, the total industry earnings had fallen compared to 2014 when they stood at Sh87.1 billion.

W Hospitality Group recently said there are about 20 major hotel brands lined up to locally open shop in the next five years.

Of the 20, at least 14 are set to commence operations by next year. Best Western Group tops the list of the hotels planning to start operations, with six properties under construction.


Read More

Category: business news lifestyle corporate opinion economy markets

Suggested

4 hours ago, 00:17
@StandardMedia - By: Macharia Kamau
Telcos lose control of agents as unregistered SIM cards rocket

Rush for sales sidesteps regulations on customer identification and exposes subscribers to fraud. ...

Category: topnews news business
4 hours ago, 00:17
@StandardMedia - By: Moses Omusolo
Vivo wraps up Engen deal for Sh20 billion

Pact will see firm take over rival’s outlets in eight countries, including Kenya. ...

Category: business news
11 hours ago, 17:19
@DailyNation - By: Lynet Igadwah
Mobile firms given 2 days to switch off illegal subscribers

Mobile operators have until Friday to remove unregistered subscribers and those listed using fraudulent documents from their networks or face fines of up to 0.2 per cent of their annual sales. ...

Category: topnews news business
11 hours ago, 17:08
@BusinessDaily - By: Jenny Lues
It’s time to rethink our expenditure plans

Kenya finds itself at a crossroads. It needs a better future, in terms of health and education, and lives lived. But in our modern world that depends on money, and money is made by business. ...

Category: business news markets economy lifestyle opinion
17 hours ago, 11:37
@DailyNation - By: Constant Munda
Treasury sees growth hitting seven-year high

The imposition VAT on fuel has triggered widespread fears that the economy is bound to deeply suffer. ...

Category: topnews news business
11 hours ago, 17:19
@BusinessDaily - By: Nasibo Kabale
Medics in strike threat over Pumwani saga

Doctors have threatened to go on a countrywide strike if the suspended colleagues from Pumwani hospital are not reinstated. ...

Category: business economy news corporate
Our App