This archive report was first published on 3 September 2019.
According to a recent industry report, Kenya's hospitality sector is poised for continued growth, supported by a 37.7% increase in international tourists' arrivals to 2 million in 2018, up from 1.5 million in the previous year.
However, the report notes that security concerns, following the Dusit D2 attack in early 2019, may hinder growth in the sector.
Released last month, the report by Pricewaterhouse Coopers (PWC) highlights the sector's resilience, with available rooms increasing by 5.2% to 20,100 in 2018, the largest growth in the last five years.
"This was a result of new hotel openings such as City Lodge, Hilton Hotels, and Movenpick," the report states.
Additionally, 3,700 rooms are expected to enter the market from the hotel pipeline, which includes hotel brands such as Pullman, Radisson, Novotel, Protea, and Hyatt.
Despite the sector's growth, average daily rate income dropped from Sh13,500 in 2017 to Sh13,100 in 2018, attributed to a decline in room rates.
However, the report paints an optimistic picture, with average daily rate expected to grow by 3.8% to Sh13,600 in 2019, before increasing to Sh15,900 by 2023.
Hotel room revenue is expected to decline marginally by 1.6% to Sh500 million in 2019, down from Sh510 million in 2018.
"This fall in guests could be attributed to a precarious security situation," the report notes.
