Leisure segment slows down tourism recovery

But KAHC, the industry lobby said there was no significant change in market share despite the increased room supply in the city.

“Bed capacity has increased fairly well in the past few years and there is potential for other entrants,” said Mr Macharia.

Destinations such as the Maasai Mara and the Coast where capacity has increased by about 30 per cent have been hit hard especially during the low season.

Players are currently enjoying business from the ongoing migration in the Mara but are faced with little business in the low months.

Since 2008, the government and sector players have invested billions of shillings to open new markets including South Africa, India, Russia, Netherlands, Tanzania, Uganda, China and the UAE.

Reduced travel

Traditional markets such as the UK and Germany, however are yet to realise full recovery due to the Euro zone crisis that has forced a change in travel trends as people opt to book their holiday’s last minute or pay for travel out of pocket or on debit cards as opposed to credit.

Staycation — travel that does not involve overnight stays — has in turn become popular in the continent as individuals or families opt to stay home or take trips near home or the region.

This form of travel was informed by the financial crisis and is continuing in Europe as the value of the Euro depreciates making holidays overseas significantly expensive.

French travellers are now opting to travel on debit as opposed to credit, while the Germans have reduced their travel all together.

Despite the financial woes in Europe the region accounted for 47 per cent of the tourists recorded in the first six months of the year.

Arrivals from Africa have been on the rise due to aggressive marketing and are expected to record higher numbers following the African athletic championships held in the country in July.