The case examines the situation faced by the eco-friendly resort through the eyes of Rohan Patel, the third-generation family member freshly graduated from his MBA degree in Europe who had just returned to join the family firm. First on his list of priorities was how to deal with the occupancy problems at Larsens Camp - one of the three properties that made up Wilderness Lodges, the company's luxury hospitality business. The tourist trade in Kenya had been hit by the double whammy of political violence followed by the credit crunch and global recession, both of which had been nothing short of disastrous for the hospitality business.
The tourism crisis, in turn, led to a renewal of public debate around the sustainable management of Kenya's natural resources. Some operators saw an opportunity to push for a relaxation of existing rules for establishing hotels and resorts in and around nature reserves, which would create new jobs and increase tax revenues for the state and local councils. However, nature preservationists and environmental NGOs wanted to protect the animal sanctuaries and the local communities that often lost their ancestors' lands to the nature reserves without getting much in return.
Rohan needed to tackle a wide collection of challenges: How could the group rebuild a stronger value proposition for tourists and restore occupancy rates at Larsens Camp? What was the best way to restructure the company to ensure financial stability? How could it find the proper balance between its business and the environment, thus ensuring the future of its resorts?
Author: Benoît F. Leleux, Hegarty Aoife
Institution: IMD
Industry: Hospitality, Lodge Management
Discipline: Ethics and Social Responsibility
Number of pages: 21
Language: English
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