Chances abound for global apartment hotels in Kenya

Local tourists enjoy a moment at the pool at Sarova Whitesands Beach Resort and Spa in Mombasa. FILE PHOTO | NMG

Kenya, through the Ministry of Tourism and Wildlife, recently launched a new Tourism Strategy (2021 – 2025) that will guide the growth of the country's hospitality sector over the next five years, and diversify offerings away from the traditional safari and beach which have been the mainstay.

A key component of the plan is to brand Kenya, as a multi-product destination with diverse offerings, to enable it to have a competitive edge against its neighbours and other emerging destinations and subsequently, diversify tourist inflows from the traditional European and North American markets, to emerging sources such as India and China.

As the Cabinet Secretary for Tourism Najib Balala puts it, for the Kenyan tourism sector to thrive and yield intended potential, "we have to invest, we have to innovate, and we will get our income from that innovation."

This is in realisation that, the tourism sub-sector, is a dynamic and competitive industry that requires the ability to constantly adapt to customers’ changing needs and desires, as the their satisfaction, safety and enjoyment are the most important factors.

The new strategy couldn’t have been launched at a better time, with the country’s hospitality sector rebounding from the effects of the Covid-19 pandemic as evidenced by the 53.29 percent growth in the number of international visitor arrivals to 870,465 in 2021, as compared to 567,848 in 2020.

According to the Tourism Research Institute, over the same period, bed occupancy rates recorded a recovery of 60.7 per cent to 4,138,821 as compared to 2,575,812 in 2020.

This year, sector players are optimistic that the recovery efforts will continue, and they anticipate international arrivals will surpass a million visitors, given the numerous initiatives that the government is implementing to ensure the revival of the hospitality industry.

Similarly, sector players in the serviced residences or apart-hotels sub-sector are poised for a huge growth in bed occupancy rates, given that masses have been vaccinated and international travel restrictions have been eased.

This sub-sector, which has recently gained popularity, driven by visitors seeking authentic experiences at an affordable cost, is about to be transformed with the entry of internationally branded apart hotel operators offering premium services and international standards.

Currently, there is a shortage of this type of product attracting multinational companies and discerning corporate travelers, looking for cost-effective alternatives to traditional, shorter-term hotel accommodation

Unfortunately, the sub-sector is awash with several operators offering poor services, and questionable housekeeping standards, which ultimately affects the reputation of the hospitality industry.

These operators are unlikely to attract the numerous multinational companies that have set up their African headquarters in Kenya and are thus seeking five-star, long stay accommodation for their staff and their families seconded to the country for periods of between three months to one year.

Such clientele prefer recognised brands that will not compromise on standards and service offerings. And it is for this reason that international branded apart hotel operators such as The Ascott’s Somerset Westview Nairobi, Radisson and JW Marriot have set up residences in Nairobi.

International branded Apart-hotels are also particularly suitable for individuals who are less likely to buy or commit to long-term rentals because they need flexibility and convenience in their daily endeavours. These visitors often require affordable transient accommodation, and the managed services of extended-stay apart-hotels offer a convenient solution.

Even though the idea of internationally branded apart-hotels is still new in Kenya, demand for this type of long stay accommodation is expected to rise as the country’s economy continues to grow and develop. This highlights the opportunities for international operators to enter partnerships with local developers to foster and improve the quality of long stay accommodation offerings in Kenya.

Vijayasekar is the general manager of Somerset Westview Nairobi [email protected]

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