Increased room supply, intensive marketing, domestic tourism as well as international conferences are some of the main factors that will drive the hospitality sector in 2018.
Analysts at Cytonn Investments project continued double digit growth in the sector buoyed by improved security and budgetary allocation towards recovery efforts in the sector.
According to the latest macro-economic report by Cytonn Investments, the number of conferences held in the country increased by 16.5% in 2016 compared to a 3% increase in 2015, driven by the positioning of Nairobi as a regional hub, improved security and political calmness.
Nairobi will host several international conferences in 2018 including the second African Quaternary conference.
This is expected to result to an increase in demand for accommodation and conference facilities.
The Hospitality industry will be banking on increased room supply and bed capacity, with Nairobi alone set to register the opening of at least 751 additional rooms in hotels, some of which include City Lodge, at Two Rivers Mall, Movenpick Hotel in Westlands and Hilton Garden Inn along Mombasa Road.
This is expected to raise hotelier standards as hotels aim to maintain their market presence in an increasingly competitive market.
Completion of infrastructural projects such as the expansion of the Malindi International Airport, to enable it to accommodate more travellers and completion of the Dongo Kundu By-pass allowing ease of travel to the South Coast is a game changer for the industry in 2018.
Going forward analysts at Cytonn Investments retain a positive outlook for the hospitality sector in 2018 driven by factors such as stabilizing political situation, sustained international business and travel tourism as well as the Growth of MICE
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