Hotels hardest hit by Covid-19 to get Sh3bn bailout – VIDEO
By Stanley NgothoThe Tourism Finance Corporation (TFC) will disburse Sh3billion stimulus package to the hardest Covid-19 hit hotels to boost the tourism and hospitality industry.
The sector has borne the brunt of the viral health pandemic since March 13 when the first case was reported, quickly followed by movement restrictions which starved hotels of customers.
Most establishments shut down and laid off hundreds of their employees in a bid to contain their expenses.
But after easing restriction in July, the government is now banking on the Sh3 billion package to help the sector’s recovery.
According to TFC Director Jonah Orumoi the package will be disbursed from early next month to hotels and lodges.
Five per cent interest
Speaking at Amboseli National Park when the corporation drummed up support for domestic and regional tourism over the weekend, Mr Orumoi said the recipients will be charged a flat rate of five per cent interest repayable in period of between five to 10 years.
“The government is committed to revive the hospitality industry. Most hotels have since shut down and require a boost to turnaround. The industry must embrace restructuring and embrace domestic tourism,” said Mr Arumoi who met different hospitality industry stakeholders during the tour.
He added that the corporation was working on a plan to extend the package to tourism related small business enterprises. Besides the funding he said stakeholders are also receiving free advisory on recovery from the corporation.
Domestic focus
“To ensure sustainability of the tourism industry, various players must develop modern business models that are flexible and cost cutting. The corporation is ready to partner and provide advisory services,” he added.
Within Amboseli wildlife circuit with more than 11 hotels and lodges only Oltukai Lodge is in operation after months of closure.
Dr Keziah Odemba, director Ministry of Tourism who accompanied Mr Arumoi said the government was eying sustainable tourism laying more emphasis to domestic tourism.
She said with the stimulus package, hotel will be able to offer discounts to their guests to entice more locals.
Oltukai Lodge General Manager Kennedy Were said most hoteliers had been hard hit by the pandemic saying the stimulus package will boost the industry.
“We are optimistic the industry will turn around. The government stimulus package will help most hotels to reopen and provide much needed employment to our people,” said Mr Were.
Oltukai is currently operating at full capacity under Covid-19 guidelines. Most hotels have had to revise their rates, offering as much as 30 percent discounts to woo clients.
A spot check at Amboseli National Park showed Kenyans are embracing domestic tourism with local visitors streaming in. There were also a few international guests.