Sarova Hotels on how COVID-19 is impacting of Kenya’s hospitality industry

The hospitality industry in Kenya, like many around the world, has been significantly impacted by the COVID-19 pandemic. The sharp decline in tourism numbers due to travel restrictions has forced many hotels and resorts to suspend operations. Jimi Kariuki, the Managing Director of Sarova Hotels and Resorts, recently shared insights on the state of hospitality in the country in an interview with CNBC Africa. Reflecting on the unprecedented situation, Kariuki highlighted the abrupt halt the industry faced as the virus spread globally. The early months of the year, particularly January and February, had shown promise with strong bookings and optimistic forecasts. However, the declaration of the pandemic by the World Health Organization led to a substantial number of cancellations and a drastic drop in bookings. Currently, Kariuki estimates that around 90% or more of hotels and tourism businesses in Kenya are closed, resulting in a complete cessation of revenue inflows. Amid these challenges, Kariuki emphasized the hotel's focus on preserving jobs and ensuring the well-being of employees. He mentioned the closure of two properties under management contracts, emphasizing that they were temporarily halted rather than permanently shut down. The decision was driven by the need to mitigate costs during a period of zero revenue and adjust operations in line with government regulations. As the industry navigates this unprecedented crisis, government support has been limited by the lack of revenue. While fiscal measures such as reduced VAT rates and tax reviews have been implemented, the impact on businesses without income has been minimal. Kariuki acknowledged the government's focus on managing the health crisis and expressed ongoing engagement with authorities to explore gradual reopening plans for hotels and restaurants. Looking ahead, Kariuki addressed the shift towards domestic tourism as a potential avenue for recovery. While acknowledging the financial strain on individuals and businesses, he emphasized the need for innovative approaches to make travel more affordable and appealing. Collaborations with stakeholders in the tourism sector, such as National Parks and airlines, are seen as vital to creating attractive packages and experiences that cater to changing consumer preferences. In conclusion, the road to recovery for Kenya's hospitality industry remains uncertain. While the prospect of a bounce-back in tourism is promising, the lingering economic effects of the pandemic may dampen travel demand. Sarova Hotels and Resorts, like many in the industry, are adjusting their strategies and offerings to adapt to the new normal and revive interest in travel post-COVID.