Leisure segment slows down tourism recovery

The tourism sector is on course for a record year in arrivals with the exception of the leisure segment that has seen chartered planes and cruise ships stay away in the face of hard financial times in source markets.

International arrivals for the first six months this year are the highest recorded, having surpassed the 2007 levels, the sector’s best performing year.

Some 482,950 international tourists arrived in Kenya by June, a 17 per cent growth compared to the same period last year and 5,270 more than the same period in 2007.

The growth has mainly been driven by business and conference tourists as the leisure market still struggles to recover, hurting destinations like the Coast region.

“The leisure market is still down. Though this is the high season and beds are filling up we have not recovered,” said Mr Mohammed Hersi, the general manager of Sarova Whitesands.

In 2007, the industry’s benchmark year, leisure tourism was the main driver of numbers.

“Tourism has the potential to record 40 per cent growth over 2007 if the leisure market improves its performance”, said Mr Mike Macharia, the chief executive of Kenya Association of Hotel Keepers and Caterers (KAHC).

The Coast region relies heavily on charters with 30 currently serving the circuit compared to 40 in 2007.

The poor performance by cruise tourism to Kenya, mainly due to piracy on the Gulf of Eden has also led to fewer leisure tourists coming into the country.

Central Bank data shows that no cruise ships docked at the Coast between January and April this year compared to 11,809 visitors who arrived by the luxury vessels during the same period last year.

The leisure segment is also grappling with an increase in bed capacity in major game reserves and parks, such as Maasai Mara.

“Numbers might be up to 2007 levels, but hotels are not at the same business rate due to increased room supply in the market,” the managing director of Serena Hotels, Mr Mahmud Janmohamed, said.

Nairobi, however, was an exception as the increased supply was quickly being taken up.

The short supply of bed capacity in Nairobi has seen investors take a keen interest in tapping into its growing popularity as a business and conference hub.

Sourced=businessdailyafrica