The hospitality sector in Africa’s emerging markets looks set to profit from foreign investment and an influx of foreign travellers, a new report by global assurance, advisory and tax services firm PricewaterhouseCoopers (PwC) indicates.
According to PwC’s 7th edition of the ‘Hotels Outlook: 2017-2021’ report, 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.
Pietro Calicchio, the hospitality and gaming industry leader for PwC Southern Africa, 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,” said Calicchio. 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, the report indicates.
The study that was released on Tuesday features information about hotel accommodation in South Africa, Nigeria, Mauritius, Kenya and Tanzania, and also looks into Ghana and Ethiopia as emerging hotel markets.