25pc of hotels unsure about full recovery- CBK

NAIROBI, Kenya, Dec 6 – A survey conducted by the Central Bank of Kenya indicates that 25 percent of hotels are still unsure about full recovery despite improved recovery in the sector informed by the lifting of COVID-19 containment measures.

The  poll which was administered among  70 hotels across the country, ranging from the top rated 5-star hotels to the small-scale ones attributed the continued uncertainty to rising cases of infections in Europe that could spread to the country with possibilities of enhanced restrictions

The regulator, in the survey conducted between November 17 and 19 noted that another 35 percent of hotels expected to resume normal levels of operations by end of 2021, an increase from the 14 percent recorded in the September survey.

“The respondents believe that they economy is still recovering and requires some times for the sector to start benefiting from the recovery,” the November 2021 Monetary Policy Committee Hotels Survey noted.

Overall, 78 percent of the respondents noted that their businesses had improved with lifting of curfew and other restrictions reporting that the short operating hours due to curfew had affected the restaurants and entertainment activities especially bars.

“On average, bed occupancy improved from 38 percent in September to 52 percent in November, There was a slight decline in bed occupancy in November from the levels reported in October particularly in Mombasa and Nairobi Hotels,” the survey added.

Six percent of respondents felt that the lifting of the curfew had no impact on their business while about 8 percent of the respondents stated that the sector was hardest hit and requested that the government support in form of stimulus, levies and tax waivers.

“In addition, some respondents cited challenges with payments of pending bills by county governments and taxation as issues of concern. Other respondents noted harsh economic conditions as well as a competition, and high operational costs as key concerns for their businesses,” the survey noted.