“When you look at the prices of fuel and power it is costing us a lot, it is too high for tourist hotels to operate, and therefore we will have no option but to increase tariffs so as to stay afloat,” he said. Speaking on the sidelines of the 2022 tourism symposium in Mombasa, Macharia asked the government to adjust the cost of energy to cushion the sector.
“Anything that you sell in the hotel must make a profit for the hotel owner, so with this rising cost of inflation, we will have no choice but to increase the cost of services,” he added.
Macharia said the government needs to rethink policies that will attract more tourists to the coast following a sharp decline in arrivals.
With open skies plans now a distant dream, passengers will continue to pay heavily for air tickets as countries move to protect their airspace in order to cushion their local carriers from the competition.
This happens as the hotel industry has been challenged to embrace new modes of marketing to tap into domestic tourists and stay afloat during this economically challenging time.
Labour chief administrative secretary Jackson Kalla said the sector is now experiencing an upward trajectory challenging players to diversify products. “You should be able to focus on marketing and advertising targeting the domestic market to tap into it so that people can spend on it,” said Kalla.
By Fred Odanga Azelwa.