TPS trims half year net loss to Sh557 million
TPS Eastern Africa, the operator of Serena brand of hotels, has trimmed its half year loss marginally to Kes557.3 million from Kes641 million loss suffered at a similar period last year as the business battles economic fallout from the pandemic.
In the half marked by lockdowns and travel restrictions due to Covid-19, TPS revenues from contracts with customers remain largely unchanged at Kes1.1 billion.
Despite the largely unchanged dip in earnings, TPS says the performance should not be extrapolated to a full year forecast as operating the conditions improve following the devastation of the COVID-19 pandemic.
Global tourism suffered further setbacks in the beginning of the year as international and regional source market countries tightened travel restrictions in response to outbreaks of the more virulent variants of the virus, TPS note to investors said in part.
The US and UK, which are key visitor sources for Kenya, have maintained level four travel alerts on the country for months on end, subsequently causing decline in the number of international visitors.
Read also: International arrivals on the rise but US, UK travel advisories shackle growth
Kenya National Bureau of Statistics leading economic indicators report shows that the number of visitor arrivals through the Jomo Kenyatta International Airport and Moi International Airport dropped by 7.5 per cent to 113,307 persons in the three months to June from 122,498 persons in recorded by March this year
“As anticipated by the board and management of the company, the devastating impact of the Covid-19 pandemic on global tourism carried on into the first half of the year 2021,” added TPS.
For over 18 months and still counting, mandatory testing, quarantine, and in some cases complete closure of borders have all slowed down the resumption of international travel, a key driver of growth in the hotel industry.
