Tourism - TPSEA & KQ
- Loss on inbound traffic into Kenya esp from Europe. KQ opened route to Paris in 2007 but it seems doom & gloom. The drop in passengers is frightening.
- Competition has pummeled KQ on the LHR-NBO sector. Add the clashes & it gets worse during KQ's "profitable" Jan-Apr period.
- Many N.Americans (2nd largest tourist market) have stopped flying to Kenya.
- KQ has suspended the LHR-MBA route since there are few tourists willing to come to Kenya on holiday. The Jo'burg-MBA sector has been suspended as well. Therefore, all flights have to pass through NBO.
- Weaker KShs means higher fuel & interest costs.
- KQ's saving grace are the W.Africa bound passengers.
- High oil prices makes it worse. All airlines will suffer (except the Mid East).
- If peace prevails, then KQ will see inbound passengers increase from August 2008.
- Replacement plane (767) delivery in Oct 2008 to ease current equipment "shortage". The SAABs will be retired.
- Weaker KShs will "boost" profits in KShs but the break-even factor has increased.
- Lucky for them, they expanded to include the Tanzanian portfolio of hotels & lodges. Some loss of Kenyan business has transferred to Tanzania.
- Serena Nairobi is normally 85%+ occupancy at this time. They are at 20%. Yes, only 20%. They are bleeding money.
- Serena's other lodges are almost empty. Most tour operators prefer the tourists fly but this can be prohibitive to middle-class tourists.
- Serena Mombasa may be shut down for "renovations" until tourism picks up!