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COMMENTS BY MAHMUD JAN MOHAMED, GROUP MANAGING DIRECTOR, TPS EASTERN AFRICA (SERENA HOTELS) ON THE COMPANY’S 2011 RESULTS AND BUSINESS OUTLOOK FOR THE YEAR 2012

COMMENTS BY MAHMUD JAN MOHAMED, GROUP MANAGING DIRECTOR, TPS EASTERN AFRICA (SERENA HOTELS) ON THE COMPANY’S 2011 RESULTS AND BUSINESS OUTLOOK FOR THE YEAR 2012

COMMENTS BY MAHMUD JAN MOHAMED, GROUP MANAGING DIRECTOR, TPS EASTERN AFRICA (SERENA HOTELS) ON THE COMPANY’S 2011 RESULTS AND BUSINESS OUTLOOK FOR THE YEAR 2012

The Company for the fourth consecutive year successfully navigated through a rather challenging business landscape for the tourism industry in East Africa and I am delighted that TPSEAL recorded an impressive performance and higher growth levels compared to the previous year.

Despite the challenges associated with the global economic crisis and the recent Eurozone crisis, it has generally been observed that the Tourism Sector in East Africa witnessed a positive turnaround with traditional and new markets performing relatively better than year 2010. In the year under review demand for traditional safari and beach holidays steadily increased and this was complemented by increased activity within the East African corporate and domestic market segments.

It was however unfortunate that the leisure and corporate travel bookings to Kenya were negatively impacted during the last quarter 2011 as a result of the travel advisories issued by foreign government agencies due to the security risks posed by the Al Shabaab situation which continues to be of concern during the first half of year 2012.

The business landscape in East Africa continues to suggest a degree of caution in light of the adverse consequences of the Eurozone crisis combined with uncertainty weighing on the security and political environment due to the Al-Shabaab situation and the forthcoming General Elections in Kenya respectively. Management is cautiously optimistic that notwithstanding the challenging business environment, the Group has the inherent strength and business resilience to continue to focus on its long-term business strategies as it continues on its growth trajectory tempered by a balanced risk management approach.

Tourist arrivals to Tanzania and Zanzibar continue to improve with occupancy and rate levels for the year 2011 recorded at above year 2010 levels which is encouraging.

The Board of TPS East Africa Ltd has recommended for approval an increased dividend to Shs. 1.30 per share compared to Shs.1.25 per share in year 2010.

For the year 2011, TPS Eastern Africa recorded a Turnover of KShs. 5.5 billion compared to KShs. 4.5 billion in the previous year, a growth of 22.0%, and achieved a Profit Before Tax of KShs. 853 million compared to KShs. 693 million in the previous year, a growth of 23.1%. Within the overall context of a business environment that was challenging the results achieved are commendable and are considered satisfactory; further enhancing the Company’s financial fundamentals.

During the year, the company explored further opportunities to strengthen the East African Serena circuit within the context of our medium to long term business strategies. In the course of 2011, Lake Elmenteita Serena Camp located within the Soysambu Conservancy was commissioned and the refurbishment of Mara Serena Safari Lodge and extension of Sweetwaters Tented Camp is under implementation.

The Group continues to be a significant contributor to the revenues of the Governments of Kenya, Tanzania and Zanzibar and paid, in aggregate, the equivalent of KShs. 1,075 million (2010: KShs. 912 million) in direct and indirect taxes and equivalent of KShs. 199 million (2010: KShs. 180 million) to local authorities in royalty/land rent payments in the various jurisdictions during 2011.

 

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  • COMMENTS BY MAHMUD JAN MOHAMED, GROUP MANAGING DIRECTOR, TPS EASTERN AFRICA (SERENA HOTELS) ON THE COMPANY’S 2011 RESULTS AND BUSINESS OUTLOOK FOR THE YEAR 2012

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