[ad_1]
JOHANNESBURG – The hotel sector in Africa has the potential to continue growing over the next five years, according to a PwC report. The increase in the number of foreign and domestic travelers as well as the expansion of several hotel chains on the continent reinforce the untapped potential of the hospitality sector for the growth of the company.
The eighth edition of PwC's "Hotel Outlook: 2018-2022" includes information on accommodation in South Africa, Nigeria, Mauritius, Kenya and Tanzania. Hotel room revenues for the five markets as a group will grow at a compound annual rate of 7.4% to reach $ 3.7 billion in 2022, up from $ 2.6 billion in 2017.
" Tourism to the African continent has shown resilience in the face of economic and political uncertainty, the impacts of drought and other regulatory changes, "said Pietro Calicchio, the leader of the world's tourism industry. hotel industry at PwC Southern Africa. "There are plenty of opportunities for this industry to continue to grow, but at a more modest pace, but as we continue to see, there are a number of challenges for each country as well. of policy, regulation, security and sustainable development. "
The South African hotel chambers' business figure is expected to reach $ 1.6 billion in 2022, up 5, 6% per year in 2017. The growth of hotel rooms in South Africa remains similar to that forecast in the 2017 Hotel Outlook, with the addition of an additional 2,900 rooms over the next five years. We also expect that occupancy rates will continue to grow over the forecast period and reach 62.5% in 2022.
The number of international visitors to South Africa continued to grow with e overall increase of 2.4%. The outlook for 2018 remains positive but at lower percentages than in 2016. The report predicts that the number of foreign visitors and domestic tourism will increase by 5.3% in 2018. The total number of travelers in South Africa is expected to reach 19.5 million in 2022, an annual increase of 4% from 16 million in 2017. "There is also a debate on further easing visa requirements for international visitors, which could impact our growth. planned, "said Calicchio. In 2016, visitors from China to South Africa dropped by 17% in 2017. Indian travelers recorded a modest growth of 2.7% in 2017, well below the increase of 21.7% recorded in 2016. Among non-African countries, the United Kingdom remains the main source of visitors 447,901 in 2017, contributing to overall growth of 7.2% of visitors from non-African countries in 2017. Among African visitors, the largest number is from Zimbabwe to two million, followed by Lesotho in 1 While South Africa's tourism fundamentals remain favorable, favored by improving the global and local economy, other factors such as that the water shortage in Cape Town affect it. As there are few historical precedents, it is difficult to project the impact of the drought on tourism. Although bookings dropped in Cape Town, overall tourism in South Africa held up well during the holiday season and even resumed in the first quarter of this year. Cape Town hotels take a number of steps to conserve water. If winter precipitation continues at the current rate, the scope of the crisis may be limited.
Nigeria is expected to be the fastest growing country in the next five years. A number of new hotels must be open during this period. Continued improvement in the domestic economy will also lead to faster growth in overnight stays
Kenya, Tanzania and Mauritius are expected to be the next to grow the fastest, with annual increases of 9.6% , 9.1% and 7.2% respectively. South Africa is expected to be the slowest market with an annual increase of 5.6% in its turnover.
Overall, the hotel room business figure in South Africa grew from 4.6% to $ 1.2 billion in 2017 in the market in 2017, to 79.5% . While the average growth of daily rates (ADR) of five-star hotels has slowed in 2017 ($ 129,000), as for the overall market, the 8.8% increase remains significantly higher than that of hotels three and four stars, Reflecting the impact of the high occupancy rate of five-star hotels
With the opening of several four-star hotels in 2017, rooms available rose by 1.8%, the first increase since 2013. Most planned hotel openings over the years will be four-star hotels, which will result in a projected annual increase of 2.4% of the four-star rooms available over the next five years – 76% of the total increase of rooms available for all hotels in South Africa. The three-star hotels account for 31% of total hotel room business in 2017.
The hotel markets of Nigeria and Mauritius continued to perform well in 2017 with a double-digit growth. For the entire forecast period, the number of rooms available in Nigeria will increase from 9,700 in 2017 to 12,600 in 2022, representing a compound annual increase of 5.4%, the largest expansion ever recorded in Nigeria. The report.
in Mauritius increased by 12.7% in 2017 and the country continues to experience a growth in the number of foreign visitors. The annual revenue of hotel rooms is expected to increase at an annual compound rate of 7.2% until 2022.
Kenya experienced a drop in visitors as a result of the national elections of the year. August 2017, but a recovery has already been observed in December. % of overall growth. However, this was not enough to increase overall room revenues, which decreased by 13.5% in 2017. Tourism in Kenya is expected to grow at a compound annual rate of 6.9%, from 1, 47 million in 2017 to 2.06 million in 2022
The business figure of Tanzanian hotel rooms rose to 206 million dollars in 2017, down 5.5% compared to 2016 due to a decrease in overnight stays. However, overnight stays are expected to increase this year and expected revenue growth is expected to be 10.2%.
The hospitality and tourism sectors in each of the countries in our report all show signs of continued growth over the forecast period. Tourism remains an important part of every economy. However, the slightest change or disruption can have a fundamental impact on the future growth of each market. "It is therefore important that investors, hoteliers, tourism organizations and governments continue to work together to develop this important industry and ensure its sustainability so that all stakeholders get the maximum benefit," said Calicchio .
[ad_2]
Source link
