Nipate
Forum => Kenya Discussion => Topic started by: Omollo on May 10, 2015, 02:54:07 PM
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My friend just wound up his car rental in Mombasa. He specialized in providing rental cars for tourists visiting the coast. That was his main business. He also earned a little from GoK and domestic tourists who rented from time to time. After the Somalia thing he recons it was just descent to bankruptcy.
He sold many of his cars at a loss to pay off the car loans and cancelled any new orders. He says by the time he paid the last owed coin, he was technically bankrupt. He was lucky to hand over his staff to another company that was starting in TZ to transport tourists from the border to spots in TZ. So he escaped being blackmailed by trade union leaders who were already paying him visits. He settled with casual workers and terminated contracts with tyre suppliers, repair workshops and insurance companies.
I had one car in his fleet, he parked it wrote the mileage and directed the parking and service bill to me. I asked him to sell it if he gets a good offer.
He says he escaped lightly compared to hoteliers and apartment owners who had taken huge loans to invest in tourism. He says what is now being lost is the capacity. It is shrinking to the extent that if it goes on for another 2 years, it would need a decade to restore it. If some of those hotels change hands and get altered to factories or other things, the chances of re-conversion will decrease.
Most damaging is the loss of qualified staff. Most have joined colleges and retrained for other jobs and will not return to the uncertainty of the hotel industry
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If we suffered in 98 and 01 Nairobi and Kimbalala..just imagined what the hell is going on now in the tourism sector. The GoK reckons we have lost 20% (this year) while the industry claims it more than 50%. When I was last in Mombasa around Nov last year...I rarely saw any tourist (white man or woman) roaming the streets.
Until we are done with Alshabaab..tourism will continue to bleed to death.
When can be realistic get done with Alshabaab..nobody now. Best now to ran to TZ if you're interested in tourism.
My friend just wound up his car rental in Mombasa. He specialized in providing rental cars for tourists visiting the coast. That was his main business. He also earned a little from GoK and domestic tourists who rented from time to time. After the Somalia thing he recons it was just descent to bankruptcy.
He sold many of his cars at a loss to pay off the car loans and cancelled any new orders. He says by the time he paid the last owed coin, he was technically bankrupt. He was lucky to hand over his staff to another company that was starting in TZ to transport tourists from the border to spots in TZ. So he escaped being blackmailed by trade union leaders who were already paying him visits. He settled with casual workers and terminated contracts with tyre suppliers, repair workshops and insurance companies.
I had one car in his fleet, he parked it wrote the mileage and directed the parking and service bill to me. I asked him to sell it if he gets a good offer.
He says he escaped lightly compared to hoteliers and apartment owners who had taken huge loans to invest in tourism. He says what is now being lost is the capacity. It is shrinking to the extent that if it goes on for another 2 years, it would need a decade to restore it. If some of those hotels change hands and get altered to factories or other things, the chances of re-conversion will decrease.
Most damaging is the loss of qualified staff. Most have joined colleges and retrained for other jobs and will not return to the uncertainty of the hotel industry
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If there is a property bubble in Kenia and it bursted, it would start with coast/Mombasa
It has a silver lining; the average negro can afford watching Wildebeest migration. You have no idea how many 'offers' and packages hit my inbox from desperate tour operators
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Imagine how many people have lost jobs in this debacle.
BTW, you will get more for your money in TZ than Mombasa, but am not sure about services.
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Tourism in Kenya died in 2014. Just waiting for official burial ceremony.
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I think it died with West Gate...that should be somewhere in 2013. Any industry strong coupled with tourism sector (including KQ) should be busy diversifying.
Tourism in Kenya died in 2014. Just waiting for official burial ceremony.
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Thats why KQ is loosing money faster than anyone else
I think it died with West Gate...that should be somewhere in 2013. Any industry strong coupled with tourism sector (including KQ) should be busy diversifying.
Tourism in Kenya died in 2014. Just waiting for official burial ceremony.