Hoteliers to access cheap loans for facelifts

Hoteliers will access cheap loans at interest rates of nine per cent to give facelifts to their facilities, in a plan meant to boost the country’s image and attract more visitors.

The Ministry of Tourism said it had sought the funds from the World Bank and the French government, to be managed by a yet-to-be determined commercial bank.

The hotel refurbishment fund will be used to renovate and expand existing facilities.

“We are having talks with the World Bank and French Embassy to put the funds in one of the banks to be issued at rates of between six and nine per cent,” said Tourism Principal Secretary Fatuma Mohamed.

“Most of the resort hotels were built in the 1970s hence the need for upgrade," she said.

HALF INTEREST

The nine per cent interest on the loans is half the prevailing average rates of about 18 per cent that commercial banks are charging.

The government-owned Mombasa Beach Hotel, which has not been refurbished for 30 years, is one of the facilities earmarked for a facelift.

Tourism is a key foreign exchange earner for the country but has been in a slowdown following the crippling effects of travel alerts issued by Western nations due to terror attacks on key holiday destinations.

The US and Britain have since lifted their travel advisories on the coastal getaway towns of Mombasa and Malindi following improved security, raising hopes that the sector would be revived.

Kenya is now racing to diversify its tourism portfolio on top of its traditional game drives in wildlife parks to include gastronomy (food festivals), cultural festivals, conferences and meetings, according to the PS.

The country has also intensified campaigns to attract more charter flights.