Kenya is striving to revive its tourism industry but high hotel prices could stand in the way. Hotels in Nairobi are among the most expensive in the region, according to a survey published by hospitality research firm, STR Global.
With an average room rate of US$122.30 per night, hotels in Nairobi charge almost double the rates of hotels in Johannesburg, where travellers pay $72.90 per night. This is despite low occupancy due to security concerns and travel advisories.
Thomas Emanuel, Director of Business Development, STR Global, said: “In the face of the recent terrorism incidents in Kenya, Nairobi's hoteliers have chosen to maintain rates but they have suffered with lower occupancy.”
However, tour operators say that, despite high hotel prices, Kenya is not necessarily pricing itself out of the market. Onne Vegter, CEO of Wild Wings Safaris, says Kenya remains high up on the list for many international tourists who are looking for an African safari, despite the fact that Kenya doesn’t benefit from a strong dollar and weak local currency as South Africa does.
For the inbound, high-end market, Kenya’s prices also don’t form an obstacle to travel, says Rowena Robartes, Specialist Travel Consultant for Boundless Africa. “I am not seeing a drop in bookings to Kenya for either price or safety reasons. Top-end properties are as expensive as those of the same calibre in Tanzania and Botswana and even, in some cases, in South Africa.”
Both Vegter and Robartes say government taxes and park fees are a bigger challenge for the country’s tourism industry. “High taxation on tourism services and airport taxes are perhaps the most detracting elements to mid-range tourists,” says Robartes.
Vegter says although he feels Kenya’s pricing is on a par with the rest of East Africa, in the context of the country’s current challenges to attract tourists, it would make sense to reduce prices. “The government could assist in the form of reduced taxes and park fees, if they were really serious about turning things around for Kenya’s tourism.”
Kenya has some of the highest costs of ticket taxes and access to international air transport services for visitors, according to new data released from the World Economic Forum. The taxes and levies imposed on hospitality establishments across the country are prohibitive, according to the CEO of the Kenya Association of Hotel Keepers and Caterers, Mike Macharia.
