This archive report was first published on 18 June 2020.
Kenya's hotel sector has been severely impacted by the COVID-19 pandemic, with over 90 percent of employees laid off in April 2020, according to a new study.
The Monetary Policy Committee Market Perception Survey for April 2020 revealed that the majority of workers affected were on casual, permanent, and contracted duties.
Industry moguls expected hotels to remain closed for 3-6 months, with 95 percent of hotels experiencing over 90 percent cancellation of bookings for April, May, and June.
As a result, 60 percent of industry players projected over 90 percent loss in 2020 due to cancellations and closures.
However, the government's efforts to reopen the sector have been slow, with only 19 percent of hotels reopening by May, according to the Monetary Policy Committee market perception survey.
Those surveyed reported zero forward bookings, with only 5 percent having forward bookings for the period.
Despite the challenges, 75 percent of respondents said they are in the process of resuming operations amid slow economic activities witnessed in the country.
Reopening the sector with curfews and lockdowns in Nairobi and Mombasa, and with airports closed, has been deemed not cost-effective by industry players.
