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Hon. Catherine Afeku –Minister For Tourism, Arts &Culture
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The hospitality sector in Africa’s emerging markets looks set to profit from foreign investment and an influx of foreign travelers. The emerging markets are set to post faster growth in revenue than their counterparts in developed countries, making them integral to the expansion strategies of some of the world’s leading hotel developers.
Hospitality & Gaming Industry leader for PwC Southern
Africa, Pietro Calicchio said “The growth potential of Africa is high mainly
because of the rapid economic growth in some economies, a growing middle class
and an increase in visits from foreign visitors. “The emerging markets are a
sought after destination for foreign investors – it is in these markets where
there is continued economic growth and a need for additional infrastructure. In
addition, governments and policy makers are introducing a range of tax
incentives and other incentive schemes to foreign investors.”
Although the potential for foreign investment has
improved substantially in Africa over the past several years, it is not without
a number of challenges. Some of these challenges include a drop in oil prices
and other commodities, social unrest, unstable electricity supply and the
impact of one of the most severe droughts across the African continent.
These
are some of the highlights from PwC’s 7th edition of the ‘Hotels
Outlook: 2017-2021’ report. PwC’s report features information about hotel
accommodation in South Africa, Nigeria, Mauritius, Kenya and Tanzania. This
year, the report took a step further and looked into Ghana and Ethiopia as
emerging hotel markets.
Ghana
The hotel sector in Ghana has remained resilient
despite recent global economic challenges. Following the collapse in the oil
price and that of other commodities, the government has taken steps to
diversify the economy, including promoting the hospitality and tourism sector.
Ghana’s hospitality industry grew 1.2% from 2015 to
2016. The World Travel & Tourism Council (WTTC) expects Ghana’s
tourism industry to expand by 5.6% in 2016 and maintain an annual growth rate
of 5.1% per annum from 2017 through to 2027. A number of
internationally-branded hotels are based in Accra. As at May 2017, there were
2, 723 hotels and lodges in Ghana.
This is expected to increase the number of business
travelers to the country as the government embarks on a number of initiatives
to stimulate economic growth. The government is also making improvements in
transport infrastructure, with the construction of a third terminal at Accra’s
Kotoka International Airport and allocation of funds for the repair of roads to
popular tourist destinations.
The hotel industry is expected to grow 1.1% in 2017,
2.1% in 2018 and 2.3% in 2019.
“Having regard to the investment by foreign
investors in the industry through the establishment of high-rated hotels, and
an increasing number of tourists and business travelers, it is expected that
there will be continuous growth in the industry,” Calicchio said.
Ethiopia
In the east, Ethiopia is set to boost investment in
the hospitality sector in order to generate more foreign earnings. While the
economy in Ethiopia continues to enjoy substantial growth, the hotel sector is
poised to benefit from an increase in the number of inbound travelers with the
expected opening of some international hotel brands.
Currently there are five international hotel brands
under construction. International visitors in Ethiopia come from a wide range
of sources. It is a diverse market catering for both business travelers and
tourists. Total tourist arrivals in Ethiopia from 2015 to 2016 increased from
817 860 to 868 780. Tourist arrivals in 2017 are forecast to increase by 5.7%
on the previous year to 918, 010.
Despite the country’s bid to bolster its earnings
from the hospitality sector, political unrest broke out in 2016 which slightly
impacted the industry. Government plans include expanding Ethiopian Airlines’
footprint of regional and international routes and Addis Ababa international
airport is also undergoing expansion that will enable it to service 20 million
passengers a year by 2019. Addis Ababa will continue to grow as a regional
business hub, supporting expansion in the hotel sector.
Hotels in the city currently have a 60% occupancy
rate. Addis Ababa is host to numerous conferences. This is mainly because it
has the third-largest diplomatic community in the world, after New York and
Geneva. Calicchio said, “The growing presence of international brands in the
country demonstrates confidence in Ethiopia’s tourism growth, particularly
opportunities linked to business and diplomatic travel.”
Source: Joyfm online-Ghana
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