Dollar Depreciation Hurts Hotels and Restaurants


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there geneva;”>This was attributed to a 2.5 percent decrease in the average prices for accommodation services and a 6.4 percent increase in the average prices for catering services over the period under review.

In accommodation services, prices of short stay residence rooms and suites dropped by 3 percent on average while the prices of conference facilities rose by 8.2 percent in the third quarter of 2013 compared to the third of 2012.

The catering services, overall prices for foods and snacks rose by 8.0 percent while the prices of drinks increased by 4.9 percent over the twelve months period.

Dick Wanasolo Wadada, a statistician shows that, quarter to quarter changes indicate that the overall average prices for the hotel and restaurants sector decreased by 3.0 percent in the third quarter of 2013.

The above trend is attributed to a 0.3 percent drop in the average prices of accommodation services and a 0.3 percent rise in the prices of catering services.

The decrease in short stay accommodation prices observed in the second quarter of 2013 was attributed to the general fall and stability of the dollar price observed as some hotels charge in dollars.

“Conference facility prices increased due to high demand for these services and there was no dollar pricing effect on these services since rates are normally quoted in shillings,” Wadada notes.

The marginal food price increase is explained by the general stability in average food prices observed during the quarter.


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