High hopes for tourism as airbnb, restaurants rise at coast

The year 2023 was good for the tourism sector and hoteliers in the Coast, tourism stakeholders have said.

They are optimistic that 2024 will surpass the positive outcome of last year.

In March 2020, the Coast witnessed the closure of more than 15 major hotels due to the Covid-19 outbreak.

It took more than six months for these establishments to gradually reopen, adhering to stringent government measures set to curb the spread of Covid-19.

The subsequent years, 2021 and 2022, were challenging due to the Covid measures and political uncertainties owing to the August 9, 2022 general election.

However, following a peaceful transition of power after the election and the easing of Covid-19 rules, the tourism sector began stabilising.

Towards the end of 2022 and throughout 2023, the Kenyan Coast experienced a surge in new tourism establishments, including restaurants and airbnb apartments along the beaches.

Notably, Nyali in Mombasa saw the emergence of high-rise apartments and upscale restaurants near the pristine sandy beaches.

Establishments like Charchoma, Toscana, Kingston and Maasai restaurants in Mombasa have continued to attract local and international tourists.

In Kilifi county, LichtHaus and Kilifi Pearl, both less than two years old, have gained popularity among local and foreign guests. 

The Kenya Association of Hotelkeepers and Caterers (KAHC) noted that this influx of new establishments is a sign of investor confidence in the region.

KAHC Coast executive director Dr Sam Ikwaye said increased investments will also lead to demand for more people to work in this new establishment, which will be a source for formal employment.

“Over the past year, we have witnessed an increase in several tourist arrivals into the region, which means they need places to go, and these new establishments are coming up at the right time,” he said.

“The tourism sector is a highly labour-intensive sector. The more the tourism numbers, the more the personnel to be employed as waiters, cleaners, room service, pool attendants and so many others.” 

 Ikwaye urged the Tourism Regulatory Authority (TRA) to ensure that the establishments adhere to the set standards.

TRA is responsible for developing regulations, standards and guidelines to ensure all-round quality services.

It is also responsible for the classification and grading of tourism accommodation and catering establishments in Kenya.

“As much as we are happy with the airbnbs, the new restaurants and hotel facilities that are coming up, we should also ensure that they are up to the required standards,” Ikwaye said.

He said last December most of the hotels in the region recorded a high number of bookings, but most clients were slow on spending.

“We had good numbers in terms of bookings, but the guests were not spending outside the hotels. This is maybe due to the hard economic times,” Ikwaye said.

He said most Kenyans did not fly out of the country for the December holidays because of the depreciation of the Kenya shilling against the dollar.

“In most foreign nations, most payments are in dollars, and the Kenyan shilling has lost more than 30 per cent of its value against the dollar. This means, it is quite expensive for Kenyans to holiday in other countries,” Ikwaye said.

Coast Holiday Homes chief executive officer Habel Mwakio said the exponential growth of high-rise apartments in the region is good for the tourism sector.

“We are yet to start rating airbnbs, but most investors who are putting up these furnished apartments are doing a fantastic job in terms of the interior furnishing,” he said.

Mwakio said most clients opt for the newly opened apartments as compared to the older ones.

“There are investors who have invested up to Sh2 million to furnish their apartment, a client will be more than ready to pay more,” he said.

In Nyali, a three-bedroom apartment will go for Sh15,000 a night, but those with quality interior are charging up to Sh25,000 per night, Mwakio said.

He said they are optimistic that more establishments will come up and the tourism sector will continue to flourish this year.

“Competition is good for growth,” he said.

Last year, the Port of Mombasa received six cruise ships, whereas the Moi International Airport, Mombasa, received an increased number of scheduled and charter flights.

The last cruise ship to Mombasa Port on December 28, Ms Bolette, which is operated by Fred Oisen cruise line, brought in 900 passengers and 659 crew members.

A month earlier, MV SH Diana docked at the Port of Mombasa with 57 passengers and 147 crew members.  MV SH Diana also docked in Lamu, which had not received a cruise vessel for more than 10 years.

Veteran hotelier and director at Pollmans Mohammed Hersi commended the open skies policy, attributing it to the increased tourist arrivals in Kenya in 2023 compared to 2022.

In one of his recent remarks on his official Facebook account, Hersi noted positive developments, such as expanded flight frequencies and permissions for new flights from airlines like Emirates, Qatar Airways, and Ethiopian Airlines into Kenya.

He said previously, the Emirates airline struggled to get more frequencies to Nairobi, but they already received permission for a second flight and a third one was in the pipeline. 

Qatar Airways frequency to the region is also being increased, and Etihad Airways, and Indigo from India were also resuming operations to Kenya, he said.

Hersi said the open skies policy is also being implemented in Mombasa and it is good for the sector.

“The good news is that Eurowings now has five flights a week from two to Mombasa. The other good news is that a charter flight Condor was allowed with ease to convert to scheduled flights without unnecessary red tape,” he said.

Hersi said Ethiopian Airlines is now flying twice daily into Mombasa making 14 flights a week, and this January Fly Dubai is expected to commence Dubai to Mombasa flight.

 “We are also certain that Qatar and Turkish airlines will also be allowed to fly into Mombasa very soon,” he said.

Hersi added Royal Dutch KLM was denied a licence last minute in December 2021 to fly to Mombasa, however, the government need to fast-track the process of reissuing the licence.

“Charters into Mombasa have been facilitated and we now have charters from Italy, Poland and many other emerging sources markets like Romania, and Bulgaria,” he said.