Effect of Terrorism on Five Star Hotels in Nairobi, Kenya

Abstract

Terrorism can negatively impact growth, performance and strategies. This research study was aimed at identifying the effects of terrorism on five star hotels in Nairobi, Kenya. The issue of global terrorism has assumed a frightening and dangerous dimension across the globe to an extent that an individual’s safety in a nation cannot be absolutely guaranteed, Kenya in the recent past has experienced its share of terrorism and terrorist related activities with big magnitudes reported in Nairobi County and its environs. Terrorism raises the risk and cost of doing business irrespective of the nature of business. The main objectives of this research were to understand the effect of terrorism on five star hotels in Nairobi, Kenya and to seek out possible strategies to deal with terrorism. The value of the study is to assist the five star hotels in the analysis of direct and indirect effects of terrorism on performance variables in order to come up with business continuity plans, business resilience strategies, crisis management programs and disaster planning and recovery measures for the business survival in the event of and after the acts of terrorism. The study used a descriptive survey research design to explain how terrorism has impacted on performance by five star hotels operating in Nairobi, Kenya. The target population was five star hotels operating in Nairobi, Kenya. The researcher targeted 23 five star hotels whose list is attached as appendix three. The researcher got a sample size of 5 five star hotels. The researcher also used systematic random sampling to come up with a sample size. Structured questionnaires were used to collect primary data. The questions format was based on a five point Likert scale. After distributing and collecting the questionnaires, they were coded and edited for completeness using SPSS. The study observed that performance variables and strategies of five star hotels were clearly affected by the level of terrorism acts in the country. Tourists were more likely to visit hotels in countries that did not prove a threat to their safety.