TPS Serena to Benefit from Tourism Upswing

It is clear that TPS Serena will cash in on the projected increase in number of tourists into the country. It is projected that the country’s annual tourism revenue will hit the Sh350 billion mark in the next 5 years from the current Sh56 billion. Kenya Wildlife Service (KWS) director Dr Julius Kipng’etich has also revealed that the number of tourists visiting the country will increase from the current 1.8 million to 5 million.

Influx of Tourists

The influx of tourists into the country has seen Tourism Promotion Services (TPS) Eastern Africa Limited, Serena, profits before tax for the half year ended June grow by 78.9% to Sh215 million. Turnover also grew by 14.7% to Sh16 million compared to Sh14 million during the same period last year. Earnings went up by 61% from Sh191 million the previous year to Sh309 million in the year ended December 2006 due to the integration of the firms unit into a single holding which saw the company bring together its Tanzania and Zanzibar units into a single business unit name TPS East Africa formerly TPS holdings. However, the Units in Rwanda, Uganda and Mozambique are not owned by the listed company.

TPS Shares

TPS (EA) is the only listed company in the tourism sector, has shown strong performance in the stock market and the continuous growth in the sector is expected to continue driving the company’s profits up. It is further expected that there will be an increase in the demand for the company shares after a slow demand during the first half of the year. The company’s share closed at a stable Sh77 on Friday having moved 9,800 shares, and the good results are expected to increase demand for the share among the investing public.

Serena Brand

AKFED's involvement in tourism development in South Asia and East Africa takes place under the aegis of Tourism Promotion Services (TPS), with companies incorporated in Kenya, Tanzania, Zanzibar, and Pakistan.Tourism Promotion Services operates under the “Serena” brand name and owns and manages 15 hotels in East Africa and Asia.

The Aga Khan Fund for Economic Development (AKFED)

This is an international development agency dedicated to promoting entrepreneurship and building economically sound enterprises in the developing world. AKFED focuses on building enterprises in parts of the world that lack sufficient foreign direct investment. It also makes bold but calculated investments in situations that are fragile and complex. AKFED operates as a network of affiliates with more than 90 separate project companies employing over 30,000 people, with annual revenues in excess of US$1.5 billion. The Fund is active in 16 countries in the developing world: Afghanistan, Bangladesh, Burkina Faso, the Democratic Republic of the Congo, India, Ivory Coast, Kenya, Kyrgyz Republic, Mali, Mozambique, Pakistan, Senegal, Syria, Tajikistan, Tanzania and Uganda. Read more

Fintrade's Verdict: Buy and hold for the long term