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What’s fueling the rapid hotel growth in West Africa?

The Radisson Blu Sea Plaza Hotel in Dakar, Senegal Today, Africa is seen as one of the most promising regions for hotel developers. Aside from small chains and independents, four global hotel groups dominate signings and openings on the continent. Over the last four rolling quarters, as of September 2019, Accor, Hilton, Marriott International and Radisson Hotel Group have opened 2,800 rooms and signed deals for 6,600 rooms. Across Africa, hotel development remains important in most advanced economies, such as Morocco and South Africa; and projects are multiplying in East Africa, especially in Ethiopia, Kenya, Tanzania and Uganda. In West Africa, Nigeria is back on the development scene thanks to emerging regional destinations beyond Abuja and Lagos. Francophone Africa is also moving fast. The Ministry of Tourism of Côte d’Ivoire has launched an ambitious national plan for tourism development, Sublime Cote d’Ivoire, and already announced over $1 billion investment in the sector. Senegal is the other regional star, with local programmes such as Diamnadio, Lac Rose near Dakar and Pointe Sarene. Other countries showing active hotel development include Benin, Cameroon, Guinea, Niger, and Togo.

In an interview, Philippe Doizelet, managing partner for hotels at Horwath HTL, a hospitality consultant, identified four fundamental factors which are fuelling an increasing flow of investment into the hospitality sector in West Africa. They are, in alphabetical order: air connectivity, better economic growth, currency and demographics.

In the past few years, additional flight connections have transformed travel to and from West Africa, which, in the words of Doizelethas been a game changer. He said: “It used to be that the main hubs for flying between West African countries were Paris and Casablanca. However, thanks to the rapid growth of Ethiopian Airlines and other carriers, such as Emirates, Kenya Airways and Turkish, the situation has changed; and new routes are offered to travellers. For example, it is now possible to fly direct from New York to Abidjan, where the African Development Bank is located, and to Lomé, where the Central Bank of West African States (BOAD) is situated … and with increased travel comes increased commerce and demand for accommodation.”

According to the UNWTO, international tourist arrivals in Africa grew by 7% in 2018, one of the fastest growth rates in the world together with East Asia and the Pacific. The flight data analyst, ForwardKeys, recently confirmed that trend continuing. In 2019, African aviation experienced 7.5% growth […]

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