This archive report was first published on 10 June 2020.
As the COVID-19 pandemic continues to ravage the world, Kenya's hospitality sector is facing unprecedented challenges. The sector, which contributes significantly to the country's GDP, has been severely affected by the pandemic, with many hotels forced to implement salary cuts, unpaid leaves, and even sacking employees.
However, in a bid to stay afloat, some hoteliers have turned to creative solutions. One such innovation is the concept of 'hotel bonds', which allows customers to purchase a voucher for a future stay at a hotel, often at a discounted rate.
Planhotel Hospitality Group, a Swiss-owned company, is one of the pioneers of this concept. The company has launched a 'Holidaybond' scheme, which allows customers to purchase a voucher for a future stay at one of its three properties in Malindi. The bond is valid for two years and can be transferred or sold on.
According to Planhotel's general manager, Alexander Zissimatos, the primary beneficiaries of the Holidaybond scheme are the families and staff who have been with the establishment for the past four decades. The scheme is designed to support these individuals and help the hotel recover from the pandemic.
Other hotels are also exploring similar concepts, with the Tourism Cabinet Secretary, Najib Balala, hailing the initiative as a valuable one for the hotel industry. The government has also pumped in Ksh2 billion to cushion the sector, which is expected to face a ripple effect from the pandemic.
As the sector continues to navigate the challenges posed by the pandemic, it remains to be seen whether innovative solutions like hotel bonds will be enough to save the industry.
