As holidaymakers search harder for value and developers build more sophisticated properties, renting a private home at the coast is emerging as a preferred alternative to a hotel stay, according to tourism businesses.
Top Beach hotels have recorded decreases in bed occupancy, while self catering facilities such as Blue Bay Cove - a 12-unit home development for holiday rentals in Watamu developed by Hello Properties Limited – have registered rising occupancy levels.
In the year 2010, coastal hotels recorded only a 2 per cent increase in bed occupancy from 56.8 per cent in the year 2009, even though tourist numbers rose by 15 per cent over the same period.
The fall in hotel bookings even impacted the peak December/January season this year, with less than full occupancy over Christmas and New Year, reported hotels and the Kenyan Association of HotelKeepers and Caterers Coast (KAHCC). Stakeholders in the industry attribute the continued dipping in hotel occupancy to the rising demand for relatively cheaper self catering accommodation.
“The difference between the rising tourism arrivals and the numbers staying in hotels is a result of the uptake in self-catering options offering top settings and facilities at much lower prices,” said Friso Abbing, Director of coastal resort developer Hello Properties.
The ongoing trend towards self-catering holiday accommodation is presenting interesting investment opportunities for real estate investors. This is especially so on the back of continuing tourism growth. Kenya recorded a 16 per cent growth in tourist arrivals from January to October 2011 by air and sea which closed at 1,039,852 compared to 896,228 in the same period in 2010.
KAHCC Chariman Mr. Titus Kangangi recently commented on the decreased spending power of holiday makers during last year’s Christmas season, saying a rising number of tourists are now seeking out self catering homes and small hotels, rather than large expensive beach hotels.
Previously, staying in private accommodation at the coast was popular only among an exclusive group of well informed local travelers and overseas tourists planning to stay for longer periods at the coast.
However, many tourists are now beginning to understand the lifestyle benefits of renting a serviced private home that is flexible and suited to families and group holidays. Through its fully serviced, penthouses, garden and junior suites, Blue Bay Cove (BBC) offers a 5 star luxury coastal break at a fraction of the cost of 5 star hotels at the coast.
“At BBC, we have private chefs, house maids, nannies, messengers to do guest shopping and an experienced site manager to make our guests lives as comfortable as possible. Also our innovative online booking and payment platform on the Blue Bay Cove website gives our guests a hassle free way to book and pay which is proving very popular” said Friso Abbing, Director of Hello Properties Limited, the Blue Bay Cove developer.
A three bedroom home at Blue Bay Cove rents for Sh18,500 midseason accommodating 6 people or more, leading to a cost per person of less than Sh3,100 per night. Add to this cost some food costs and Blue Bay Cove delivers a 5 star accommodation experience at a total of Sh4,250 a night, or roughly a third of the equivalent hotel price.
By comparison, beach hotels near to BBC in Watamu typically cost a Sh13,000 per person per night for accommodation and half board, which covers breakfast and dinner, but not lunch.
“By renting private accommodation, tourists are able to create their own 'home away from home' and it is a relatively inexpensive way of staying in Kenya for families or groups of friends,” said Mr. Kimutai Ngeno, Assistant Public Relations Manager at the Kenya Tourism Board.
Mr. Ngeno adds that due to its cost efficiency, the concept is boosting the numbers of domestic tourists by making coastal holidays more affordable.
This rise in popularity of renting private accommodation at the coast is furthermore creating interesting opportunities for real estate investors looking for higher yielding assets compared to the Nairobi market. Blue Bay Cove now has just 2 of the 12 homes left for sale, and it is delivering strong rental yields from its now fully established holiday rentals service for its home owners.
For More Information contact:
Japhet Kirimi
020-354 6834/0729 649 561
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