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Kenya: Hoteliers Bank on Safari Rally to Rev Up Business

Just three weeks to go until the next edition of the World Rally Championship (WRC) gets underway in Naivasha, from 24 to 27 June the organisers of the multi-billion shilling global motorsport event are pulling all the stops to offer a unique experience to visitors and rallying enthusiasts during the event that is returning to Kenya after a 19-year hiatus.

And the business community and residents in the lakeside town of Naivasha have high hopes for a busy month to help overcome the financial pain inflicted on the resort town famous for its hospitality by the coronavirus pandemic.

The tourism industry in Kenya has been one of the hardest hit by the Covid-19 pandemic, which has resulted in lockdowns and travel bans to prevent spread of the virus.

A spot check revealed that the majority of hotels in Naivasha and surrounding areas are fully booked in the run up to the World Rally Championship’s Kenyan round to accommodate the vast number of rally participants, management and Government officials.

The countdown to the near week-long event has fans scrambling for accommodations in Nakuru County, where prices for the few available hotel rooms have skyrocketed.

5,000 participants

The organisers of the rally expect a record 5,000 participants to grace the event and they hope this will be a boon for the hospitality industry.

Due to the Covid 19 pandemic it is not yet clear whether spectators will be allowed to attend the event, say the organisers.

The Safari Rally will be making a return to the WRC circuit for the first time in 19 years. The competition runs from June 24 to 27.

The event will inject a minimum of Sh6 billion to the Kenyan economy, according to Phineas Kimathi, who is the chief executive of the WRC Safari Rally.

Already tour operators, car hire firms, travel and tour firms are reporting massive early bookings and expect brisk business on the big day. National carrier Kenya Airways is expected to record a surge in bookings.

Mr Kimathi was a well-known rally driver at the peak of his rallying career before he took charge of managing motor sports in Kenya as a member of the Kenya Motor Sports Federation.

He notes that hundreds of millions of shillings have already been pumped into infrastructure projects in the lakeside town. But the majority of the funds will be injected directly into the local economy in Naivasha, the rally organisers say.

For instance between 50 to 55 rally cars are expected to grace the event. For WRC teams, the working crew is enormous. For instance auto giant Hyundai is expected to have 70 crews at the event.

“The return of the WRC Safari rally is a significant milestone to Kenya,” says Mr Kimathi. “It will bring the eyes of the motor sport world back to Kenya after the 19 year hiatus selling Kenya as a tourist destination.”

The event is expected to attract 70 million television viewers around the world from a host of 300 TV stations that will stream the event in 150 countries offering Kenya a massive opportunity to market itself as a tourist destination.

Green garden resort

For hoteliers like Joseph Okello who manages the upscale Karmel Resort Naivasha Hotel, there will be huge economic implications to the area residents as rally enthusiasts and visitors descend within days to the town to witness the event.

“All those fans need to be housed and kept refreshed. It’s the best news ever coming after the pandemic,” Mr Okello told Smart Company on a recent afternoon at the lushly green garden resort located along the Naivasha-Kinangop road. “The lake town city is going to be really popular this month and we hope to offer our best in terms of hospitality.”

Mr Okello, like several dozen other hoteliers in the lakeside town, is hoping holidaymakers and rally enthusiasts will treat themselves to what the local hospitality venues have to offer.

His views are shared by travel consultant Geof Mayes who said visitors to the lakeside town would provide a welcome boost for the local economy.

“At present all hotels are fully booked,” says Mr Mayes.

To cash in on huge demand, some hotels reportedly cancelled earlier bookings and raised their rates by up to 300 percent to capitalise on the coming global event. Travel guides like Mr Mayes see this alleged profiteering as unhealthy.

“As recently as March 2021 one hotel, in particular, dumped all of their prior bookings without warning to re-sell their rooms at a 300 percent inflation,” he said

Mr Kimathi expects the event will significantly impact the country with dividends trickling down to small traders.

“There will be a massive impact of people attending the rally event and they will purchase items from small traders,” says Mr Kimathi.

Naivasha residents also expect to see several non-economic benefits as a result of the rally event. These include enhanced social cohesion and the opportunity for local human resources to improve their skills as they can gain experience from an international event, according to local businessman and retired head teacher David Mugo.

“It’s time for us to put our best foot forward,” he says. “The WRC event will raise the profile of Naivasha and Kenya in general on the international stage.”

The lakeside town of Naivasha has in recent years become attractive to companies and parastatals who want their employees to hold out-of-office meetings, emerging as a preferred destination for incentives, conferencing and exhibition tourism.

Moi South Lake Road itself has become a hospitality industry hotspot featuring, among others, Enashipai Resort, Sawela, Sopa and Simba lodges, Fisherman’s Camp and Lake Naivasha Country Club.

“The WRC is a global masterpiece event that will command global attention for Naivasha and Kenya in general,” says Mr Kimathi.

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