Africa: Kenya is second to Nigeria in hotel growth in Africa says Pwc Report
Tourist arrivals are projected to grow by nine percent this year boosting numbers to slightly above two million by the year 2022.
The hotel outlook report by PriceWaterHouse Coopers says more than ten hotels will start operations in the Kenyan market in five years, adding a total of 2,600 rooms.
The report further says an aggressive marketing campaign and the launch of direct flights to the US will aid in average occupancy rate which will rise to 58.1% in 2022, up from 47.3% in 2017.
The tourism sector defied political tension last year to register a growth of 10 percent raising arrival numbers from 1.3 million in 2016.
However, this was not enough to boost overall room revenue, which showed a 13.5% decline in 2017.
According to the report, tourists arrival in Kenya will increase by 9 percent this year rising to 2.06 million in 2022 from 1.47 million in 2017.
It further indicates the sector will benefit from a new policy that allows visiting Africans to obtain visas upon arrival in Kenya, making it easier and more convenient to travel to the country.
The report that features South Africa, Nigeria, Mauritius, Kenya and Tanzania Kenya will have the second fastest growing hotel room revenues after Nigeria in sub-Saharan Africa over the next five years.
In the next two years, more than five brands will open new hotels in the country adding some 1,800 rooms over this period.
The hotel outlook report predicts the average occupancy rate to rise to 58.1% in 2022, up from 47.3% last year but still well below the 62.3% rate in 2012.
The number of available rooms is set to increase from 19,100 in 2017 to 21,700 in 2022, a 2.6% compound annual increase.
Guest nights will total an estimated 4.6 million in 2022, a 5.4% compound annual increase from 3.3 million in 2017.
During the next five years, Kenya will benefit from a rebound in tourism, new hotels, and its growing prominence as an experience destination, infrastructure upgrades, and the expectation of political stability.
By O’brien Kimani