TOURISM

AFRICA TOURISM SECTOR PROFILE

The Tourism Sector still has VAST UNTAPPED POTENTIAL for Tourism Investment & Tourism Development Opportunities.

THE TOURISM SECTOR IN AFRICA HAS QUADRUPLED IN SIZE IN LESS THAN 15 YEARS. [African Development Bank (AfDB)]

A 4.4 million increase in international tourist was recorded in 2018 and arrivals reached 67.1 million for Africa – and 43.3 million for SSA (a 2.2 million / 5.4% increase from 2017).

This earned the Africa continent ±US$ 38.4 billion in international tourism receipts – and ±US$ 27.7 billion for the SSA region (a US$ 1.2 billion / 0.7%, increase from 2017).

 WHY TOURISM?

  • Africa’s strong performance makes it the world’s second fastest growing tourist destination. [World Tourism Organization (UNWTO)]
  • Tourism is a more efficient job creator than many other sectors due to the downstream effects.
  • Tourism’s main comparative advantage is that visitor expenditure have a “flow-through” or catalytic effect across the economy. [World Bank]
  • In some destinations, for every $4 spent by a tourist, $1 reaches the poor. [International Finance Corporation (IFC)]
  • In 2014, Africa recorded US $43.6 billion in revenue. According to the World Travel and Tourism Council (WTTC), the international tourism sector now accounts for 8.1% of Africa’s total GDP.
  • Tourism investments would act as a catalyst for small businesses these investments will strengthen the economic base for long-term growth in the local regions.
  • Approximately 20 million people working directly or indirectly for the tourism industry. The tourism sector accounts for 7.1% of all jobs in Africa.

THE HOTEL SECTOR IS EXPERIENCING PARTICULARLY RAPID GROWTH!

The October 2019 hotel pipeline data showed that the Africa hotel development pipeline for Africa also showed that 18,807 hotel rooms are in final planning stage and 22,629 new hotel rooms are planned for the near future.

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HOTEL PERFORMANCE INDICATORS FOR AFRICA

STR reported (25/02/2020) that Revenue per Available Room (RevPAR) for Africa hotels increased by +5.7% in January 2020, recording 92 months of consecutive RevPAR growth, amid a period of low supply growth, and strong demand in the Africa continent.

AFRICA January 2020 compared to January 2019

• Occupancy: +2.4% Increase to 54.7%
• Average daily rate (ADR): +3.2% Increase to US$119.59
• Revenue per available room (RevPAR): +5.7% Increase to US$65.41

AFRICA 2019 HOTEL PERFORMANCE [Pre-pandemic]

According to STR report (23 January 2020) the Africa hotel data for the 2019 year showed the following positive year-on-year growth for the three key performance indicators:

2019 vs. 2018 – U.S. dollar constant currency

1] Occupancy: 61.3% up +1.1% from 2018

2] Average daily rate (ADR): US$109.33 up +1.5% from 2018

3] Revenue per available room (RevPAR): US$67.01 up +2.6% from 2018

For more TOURISM information see also the TIDIA.world site: Tourism – TIDiA – TOURISM & HOTEL DEVELOPMENTS & INVESTMENTS in AFRICA