CORPORATE INTELLIGENCE AFRICA ISSUE 0024

Sun N Sand Site Map business and it appears that a substantial number of tourists arriving for long holidays now prefer staying in apartments rather than in hotels. This trend has also seen hotels including Milele Beach Hotel, owned by the PCEA Church pump an estimated Ksh1 billion towards the construction of their own apartment s to remain relevant in the industry. Mombasa and Coast Tourist Association executive officer Millicent Odhiambo said apartments are not a new concept but have gained popularity recently. She said some tourists especially those on long stay with their families prefer checking into apartments since they are affordable than hotels. “We see most of them coming and asking for apartments, saying they can stay for longer at cheaper rates in the apartments compared to when they seek accommodation in hotels. A family comprising of three children, house help and their parents have to be booked in double rooms,” she said, adding that apartments can house as many people as possible. “Apartments also provide a home experience far from home,” she explained adding that most tourists like privacy unlike in hotels where there are too many activities as business operations go on, such as seminars, and group luncheons. “Since these people are here for holiday, they want to roam around and even enjoy outings with locals. This means those who prefer the apartments would rather come back at their own time without inconveniencing the management,” she said. Vision 2030… The Ocean Seven is a public-private supporter of Vision 2030, where Kilifi county has been identified as one of the three areas singled out for significant growth and investment in infrastructure for the economic blue print. “In line with Vision 2030, we are stepping up every aspect of development at Ocean Seven and are using truly international benchmarks of design, construction, engineering – including green technologies and the latest in luxury fixtures and fittings to create something which really leads the way on Kenya’s development future” said Mr Visram. , Although reports indicate a rise in tourist arrivals, many of the hotels which have been in the industry for decades have proved that they too can be scathed by competition currently being experienced in the hospitality industry. Players in the industry abreast with trends and operations of hotels say that several investors have gone the hotel way, creating little space for level play. And as some of the hotels close down to venture into apartments business, which is seemingly growing faster, other hoteliers are venturing into different lines of business, far from the hospitality sector. Others say they have lost flavour and can no longer maintain the earlier demeanor and luxurious appeal offered before. Some investors also say returns from the hotel business do not tally with the investments put into it, meaning that the returns are lower than expected. Hotel business is under pressure from quickly growing apartments THE CORPORATE INTELLIGENCE AFRICA FOR AUTHORITATIVE AND EXTENSIVE BUSINESS INSIGHTS www.corporateintelligenceafrica.net 41

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