Africa's hotel sector has the potential to grow over the next five years - report
Africa’s hotel sector has the potential for further growth over the next five years, according to a report by PricewaterhouseCoopers (PwC).
The study noted that a rise in foreign and domestic travellers, as well as the expansion of hotel chains on the continent, is helping to highlight the potential of the region’s hotel sector.
Looking at the hotel sector in South Africa, Nigeria, Mauritius, Kenya and Tanzania, PwC’s report noted that tourism "remains an important part of each economy," with continued investment in each country seeing additional hotel rooms openings over the next five years.
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In the eighth annual edition of its Hospitality outlook 2018-2022 report, PwC predicts that hotel room revenue for these five markets as a group will increase at a 7.4% compound annual rate to R50.5bn in 2022 from R35.2bn in 2017.
“Tourism to the African continent has proven to be resilient in the face of economic and political uncertainty, impacts of droughts and other regulatory changes,” said Pietro Calicchio, Hospitality Industry Leader, PwC Southern Africa.
“The opportunities are aplenty for this industry to enjoy further growth albeit at a more modest pace.
“However, as we continue to see there are also a number of challenges facing each country. This is an industry that is reactive to the smallest change in political, regulatory, safety and sustainability matters.”
Over the next five years, PwC predicts that Nigeria will be the fastest-growing country, with a number of new hotels scheduled to be opened in the coming years.
Kenya, Tanzania, and Mauritius will follow suit, with compound annual increases of 9.6%, 9.1% and 7.2% respectively.
In the report, PwC highlighted the significance of the hotel and tourism sector to each of the country’s economies but noted that any disruption could hinder the market's potential for growth.
“It is therefore important that investors, hotel operators, tourism bodies and governments continue to work together to grow this important industry and ensure its sustainability so that all stakeholders derive the maximum benefit from it,” Calicchio concluded.