According to a report by PricewaterhouseCoopers (PwC), a total of 13 hotels are set to open their doors in Kenya over the next five years. A sign of good things to come. Maybe Yes, Maybe No. The news of investors entering our Kenyan market is greatly welcomed by all involved players but the long run effect of new market players has both a positive and negative effect. More investors equals to more jobs, a much needed reprieve, especially after the just concluded elections. But many market players also equals market saturation.
The forecasted industry growth has been accelerated by the increasing number of domestic and international tourists attributed to the fact that Kenya has embraced lifting of travel advisories. Other incentives include elimination of VAT on park fees, removal of visa fees for children as well as the reduction in park fees by Kenya Wildlife Service.
This is certainly good for Recruitment and Search organizations. Summit Recruitment & Search has a strong Hotel and Tourism Department. We have worked with clients such as DusitD2, Eka Hotel, Hemmingway’s and Tune Hotel and we are ready to take on more. We helped them fill a wide variety of roles ranging from Entry Level positions to Executive positions from our database which has over 100,000+ candidates with over 20,000 being from the Hospitality Industry.
How is this bad for other market players? Tour firms will have a strenuous relationship with hotels such that they will look for different avenues to try and fill up their rooms. Competition will also go up as many other entrepreneurs may decide to join in the rush. Market rates may decline and thus profits too will be affected.
PwC is suggesting that there will be an improvement or rather a decline in the unemployment rate and a much needed boost for our ever struggling Hospitality Industry, but it is also trying to raise a warning flag to industry players to begin strategize in anticipation of things to come. It is important to note that, not only will recruitment agencies benefit but also tour companies, restaurants and conservancies. Probably it is time for businesses to embrace data and business intelligence and use it for their own benefit.