Kenyan hotelier TPS Eastern Africa said it expects its profit for 2014 to fall by at least a quarter, mainly due to frequent attacks by Islamists that scared off tourists.
The attacks caused Western governments to warn their citizens against visiting Kenya, sending tourism, one of Kenya’s top foreign exchange earner, into a slump.
The Kenyan coast continues to experience an unprecedented business crisis
TPS, which operates the Serena chain of five-star hotels and luxury lodges, said the downturn in Kenya had created a ripple effect on its operations in other east African nations, which was further compounded by the outbreak of Ebola in west Africa.
“During the last quarter of the year 2014, the Ebola epidemic originating from west African countries negatively impacted all African tourist destinations,” the firm said in a statement published in the Daily Nation newspaper.TPS posted a pretax profit of 973 million shillings ($10.63 million) in 2013.It said the leisure segment was the worst hit by the travel warnings against Kenya, with the business segment taking a less severe blow.”The Kenyan coast continues to experience an unprecedented business crisis,” TPS said, referring to a circuit popular with holiday makers.The introduction of value added taxes on tourism services and […]