Corporate News
TPS Eastern Africa's Mara Serena Safari Lodge in the Narok County.
Kenya's tourist industry has been buffeted by security worries. FILE
PHOTO | EMMA NZIOKA
By GEORGE NGIGI
In Summary
- The company is pegging its hopes for a better second half on the seasonal nature of tourism industry but analysts are not as optimistic.
The slump in tourist numbers visiting the country
showed in the performance of Serena Hotels and Lodges, whose after-tax
profit for the first six months of the year dipped 71 per cent to Sh41
million.
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Terror attacks, especially in the coastal region and travel
advisories by major markets such as the United States and UK have hurt
tourism business in Kenya.
TPS Eastern Africa,
the owners of Serena Lodges, recently said its survey showed business
on the important coastal tourism circuit has fallen by between 30 and 50
per cent on last year.
“The group faced a challenging business landscape
in Kenya during the first half of year 2014,” said TPS in a statement
following release of its half-year results.
The tour operator disputed official figures from
the Kenya Tourism Board indicating that visitor arrivals had dropped by
four per cent, terming it a gross under-statement.
Its survey also showed inland trips to destinations
such as to the Maasai Mara game reserve and Mount Kenya had fallen by
20 per cent.
The company’s income dropped by seven per cent to
Sh2.7 billion compared to a similar period last year. TPS, which also
operates in Rwanda and Mozambique, said its Tanzania and Ugandan
businesses delivered good performances.
TPS Eastern Africa said the introduction of value
added tax on tourism services and park fees in Kenyan had made the
country uncompetitive relative to similar destinations.
The company is pegging its hopes for a better
second half on the seasonal nature of tourism industry but analysts are
not as optimistic.
“Going forward, in 2H14, we expect the company to
continue grappling with low tourist numbers which have been a challenge
across the tourism industry,” said Standard Investment Bank.
Thursday the company’s share at the Nairobi
Securities Exchange lost Sh0.50 to trade at 36.75 per unit with 2,200
shares changing hands.
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