NAIROBI: Kenya Association of Tour Operators (KATO), for the first time, painted the dim prospects of the hospitality industry in the face of rising terror threats.
“A total of 21,000 jobs have already been lost at the Coast and a solution to this has not been found yet,” KATO chairman Adam Jillo, revealed during a meeting between Kenya Private Sector Alliance (Kepsa) and business editors.
East African Affairs, Commerce and Tourism Cabinet Secretary Phyllis Kandie, confirmed that the number of workers losing jobs as hotels close down continues to increase every day.
“The numbers being reported are worrying. The negative travel advisories issued last year by key source markets is to blame,”said Mrs Kandie.
Hotel occupancy in the Coast, Kenya’s premier tourist destination, has dropped by 85 per cent. At least 20 hotels have closed. Hotels are now operating at between 15 per cent and 30 per cent occupancy, with the worst hit at the Coast.
More than 90 per cent of its hotel business has been lost to neighbouring Zanzibar, KATO says. It is projected that the dry spell could run beyond June, signalling a depressed year for the industry.
This dwindling number of holidaymakers is expected to have a negative impact on the economy. Players warn of total collapse of the industry, which employs more than 150,000 people.
“The situation is catastrophic and even after trying hard to improve the image, no meaningful results are being realised.
The consequences are huge, workers have lost their jobs and investors have closed down hospitality facilities,” said Mr Mike Macharia chief executive officer, Kenya Association of Hotelkeepers and Caterers (KAHC), the umbrella organisation that brings together hotels, lodges, restaurants, membership clubs and airline caterers.
Macharia says some charter airlines have cancelled flights to Kenya and the effects have even spread to other sectors such as agriculture, transport and construction.Kenya Tourism Board (KTB) MD Ndegwa Mureithi, said the situation is challenging.
