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Kenyan tourism hit by Egypt discounts

Price-cuts 'create competition' between African holiday spots, says major hotelier

Reuters, Saturday 26 Mar 2011
Views: 1292
Views: 1292

Tourism in Kenya will suffer this year after Egypt slashed hotel rates by up to 50 per cent to draw back visitors after weeks of political unrest, a major Kenyan hotelier said on Friday.

Mahmud Janmohamed, managing director of hotel group TPS Eastern Africa, said Egypt's discounts would divert traffic from Kenya's beaches and safari parks. The north African country's economy came to a halt after protests which toppled President Hosni Mubarak and stalled the vital tourism industry.

"People may think events in Egypt will impact us positively. But as far as I am concerned they are creating competition because they have dropped rates by 40-50 per cent," Janmohamed told Reuters in an interview.

Kenya's tourism sector earned a record 73.68 billion shillings in 2010, up 18 per cent from a year earlier,

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