Hotels: reopening with restrictions intact is of no much help

The majority of hotel operators in Kenya agree that reopening the industry will not yield much if all restrictions and containment measures are still in place.

In a market perception survey conducted by Central Bank for the month of May, respondents pointed out that reopening, with curfews and lockdowns in Nairobi and Mombasa, and with airports closed would not be cost-effective.

In an attempt to assess optimism in the economic prospects of the country in the midst of Coronavirus pandemic, the survey requested hotel sector respondents to indicate monthly forward hotel bookings, if any, received so far for the period May to August this year.

Results showed that most hotels had all their bookings cancelled or suspended indefinitely with the onset of COVID-19.

Out of hotels that responded, 75 percent were in the process of reopening basically complying with the Government’s requirements for reopening, 19 percent had reopened, but with zero forward bookings and only 5 percent had forward bookings for the period.

“Respondents, however, pointed out that reopening with curfews and lockdowns in Nairobi and Mombasa, and with airports closed would not be cost-effective,” shows findings from the study.

Forward Hotel Bookings for May–August 2020 (percent of total capacity)