How businesses are seeking Christmas boom amid the gloom

With just a week to the start of the Christmas and New Year festivities, businesses have intensified efforts to woo customers with a wide range of attractive offers featuring drastic price cuts on various goods and services. The season is traditionally a time of heightened consumer spending and despite a year marked by economic challenges that have hit many people's spending powers, businesses still consider it a golden opportunity to boost their sales and revitalise their struggling bottom lines. The rising cost of living squeeze, job losses, the lingering effects of the Covid-19 crisis and the wars in Ukraine and Gaza have placed significant pressure on households and businesses alike by suppressing economic growth and thus money in people's pockets and bank accounts respectively. Still, for many businesses, Christmas is not just a holiday; it is a critical time to recover from the financial setbacks experienced throughout the year. Retailers, hotels, restaurants, and service providers are all keenly aware of the potential that this season holds. With the right strategies, they can not only survive but thrive during this crucial period. In anticipation of the festive rush, businesses across various sectors have begun their preparations early. According to a spot check by Financial Standard retail stores are rolling out promotions and discounts to attract shoppers looking for gifts and holiday essentials. Many have also increased their inventory, ensuring that they can meet the expected demand. Naivas Supermarkets, for instance, has launched the Krisi Kikwetu promotion, which has seen the prices of household goods slashed. To sweeten the deal, the retail chain is also giving away over 200 goats to lucky shoppers during the festive season. Carrefour Kenya is another retain chain to slash prices under its Furahia Krisi promotion. For hotels, particularly in tourist hotspots such as Mombasa, Malindi and Naivasha, they have also come up with attractive packages to woo those who will be visiting for the festivities. Leading hotels such as Sarova Whitesands, Sarova Beach Hotel Diani, Vogayor Beach Resort, Pine Breeze Holiday Resort, Maasai Resort and Royal Shaza Suites in Mombasa are offering deals of up to 62 per cent reduction in the cost of accommodation. Tour and travel agencies have also not been left behind. Trippy Go Tour and Travel agency, for instance, is offering a five days and nights holiday bargain to Mombasa, Diani, Watamu and Malindi from as low as Sh46,000 per person sharing, inclusive of meals, return Standard Gauge Railway (SGR) train tickets, transfers and accommodation. In Naivasha, leading hotels offering packages for the festive season include Karmel Resort Naivasha, Lake Naivasha Resort, Dove Nest Lodge, the Great Rift Valley Lodge and Golf Resort and Panorama among others. "We are excited to see a surge in inquiries for accommodation and other activities from visitors and enthusiasts worldwide, especially as we approach the Christmas season. While our hotels are fully booked, we're looking forward to a festive time that will boost our sales," said Alex Mugo, director of Karmel Resort, a popular garden resort along the Naivasha-Kinangop Road, in an interview. The picturesque landscapes surrounding the lakeside town have for years drawn both local and international visitors giving stiff competition to other destinations mainly because of its distance from Nairobi. Naivas Supermarkets has launched the Krisi Kikwetu promotion, which has seen the prices of household goods slashed. To sweeten the deal, the retail chain is also giving away over 200 goats to lucky shoppers during the festive season. [File, Standard] As of late November, many hotels in the area reported being fully booked - a promising sign for the hospitality industry. This influx of tourists is expected to bring in much-needed revenue and create temporary jobs for locals. Many hotels are promoting special packages that include meals, guided tours, and festive entertainment. This not only enhances the guest experience but also encourages longer stays, maximising revenue. Local businesses, including restaurants and tour operators, also benefit from the influx of tourists, creating a ripple effect throughout the economy. The festive season is also set to boost the transport sector due to a surge in travel. Many families who intend to join their loved ones have already started to book transport in a bid to avoid the chaos that is usually experienced on Christmas Eve. Industry players say the demand this year is higher than in previous years despite many Kenyans taking a hit from the economic downturn experienced this year amid increased taxation. A spot check by Financial Standard revealed that many bus and shuttle companies plying the Western and Nyanza routes, among others, have their fleets fully booked until after Christmas Day. Nairobi residents have been scrambling from the few vehicles available, with many left stranded at various termini in the Central Business District (CBK) from last week. A passenger, Joel Sifuna, who was seeking transport to Bungoma called on PSV operators to reduce fares, noting that fuel prices have been on a downward trend. "The Energy and Petroleum Regulatory Authority recently reduced pump prices for super petrol dropped by Sh4.37 and diesel and kerosene by Sh3 respectively and PSVs should consider passing the benefit to passengers since many Kenyans are suffering as a result of the high cost of living and would appreciate if they can spare some money to buy food for Christmas," said Sifuna. He noted that the fare to Bungoma is currently almost Sh2,000 and is expected to go up as Christmas Day approaches. The Madaraka Express train service between Nairobi and Mombasa is also fully booked, with many people using it as it is cheaper than flying to the Coast. From Sunday, Kenya Railways (KR) introduced a night stopover in Voi, giving residents of Taita Taveta travelling from Mombasa three minutes to disembark. The move follows a recent appeal to President William Ruto during the recent commissioning of the Devki iron ore plant in Manga. "The Kenya Railways is pleased to announce that effective December 15, the 10pm Madaraka Express passenger service train to and from Nairobi terminus will now take a 3-minute stopover at Voi station," KR said. Various airlines have also added the number of flights to cater to the increased demand. Manufacturers of electronic goods such as phones have also unveiled special Christmas offers. For instance, Chinese manufacturer Tecno has unveiled the "Tecno Christmas Fiesta," which features slashed prices for various smartphones from December 1 to 31. While the rate of inflation continues to decrease, Kenyans will have to spend more to buy foodstuffs. According to the Central Bank of Kenya Agriculture Sector Survey, the balance of opinion (BOO) on expected price changes this month shows the number of items whose prices are expected to increase is almost the same as those with a downward price expectation. BOO is the difference between the proportion of respondents who express a positive opinion and the proportion who express a negative opinion. On balance, the BOO, however, points to an expected general decline in prices of several key food items one month ahead, that is, in December 2024, and expected increases in a few food items in line with seasonal factors. For instance, most respondents expect an increase in tomato prices as market supply is likely to be impacted by the October-December rain season. The expected increase in tomato prices is largely driven by seasonal factors as tomato supply tends to decline during the rainy season and increase when dry conditions set in. Respondents also expect an increase in prices of beans, green grams, green maize, maize grain - loose and garden peas in December 2024, largely reflecting seasonality.

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