FEATURED: How Rwanda's tourism industry can leverage data for growth

The tourism industry is one of the fastest-growing sectors in the global economy, generating trillions of dollars in revenue each year. As of 2022, Rwanda projected to generate up to $360 million (approx. Rwf372 billion) revenue from the tourism industry. With the proliferation of digital technology and the internet, the way people travel and book their trips has drastically changed. Companies in the tourism industry are increasingly being pushed to turn to data insights to inform their decision-making and drive growth. According to Marcellin Nyirishyaka, Data Strategy Manager at Cenfri, an independent African economic impact agency, the tourism and hospitality industry can rely on data to make informed decisions about their businesses, including customer demographics, pricing strategies, and product offerings. This data can be used to differentiate between local and international tourists and tailor products, pricing and services to their specific needs and preferences, he said. Nyirishyaka also recognises the importance of leveraging data to help the local tourism industry recover from the impact of the Covid-19 pandemic. Speaking during a data talk event on February 24, he said that by analysing data on customer behaviour and preferences, tourism stakeholders can make informed decisions about how to adjust their offerings and marketing strategies to adapt to the current environment and continue to drive revenue. While he acknowledges that local players may still be on a journey towards leveraging data effectively, Nyirishyaka believes that as tourism players and stakeholders continue to evangelise the importance of data-driven decision-making, more businesses will recognise its value and invest in the necessary tools and resources to make informed decisions. ALSO READ: Cenfri moves to bridge data insights, inform strategic decision-making Cenfri partners with the ICT Chamber in bringing data-driven policymaking to the local private sector as one of the major key players in the digital ecosystem and operates hand in hand with the government. ICT Chamber also invests in capacity building activities and upskilling. Alex Ntale, CEO of the ICT Chamber, highlighted the importance of data in the tourism sector and the use of AI tools to collect and analyse data from various sources. He emphasised the value of online reviews and feedback in generating data insights that can help those in the tourism sector plan better and make informed decisions. He noted that by leveraging data from online sites and reviews, tourism businesses can gain valuable insights into customer preferences, behaviors, and satisfaction levels which can inform their decisions. The data talk was also attended by the representative of the Chamber of Tourism. ALSO READ: Cenfri, UR move to build data-talent pipeline Pierre Corneille Niyobyiringiro, a data engineer interning with the ICT Chamber, conducted research on customer satisfaction levels in Rwanda by collecting data from various online platforms, such as Airbnb, Trip Advisor, and hotels.com. By analysing this data, he was able to identify companies that responded to reviews and ratings. The key takeaway from Niyobyiringiro's research is the importance of using customer feedback to improve products and services. By analysing reviews and ratings, he noted, companies can identify areas for improvement and develop a customer feedback response policy. Encouraging customers to leave reviews in an easy way can also help businesses collect valuable feedback that can inform decision-making, he said. Tourism is the largest source of foreign exchange earnings in Rwanda. In 2020, tourism was among the worst hit sectors in Rwanda. ALSO READ: Global economy to lose over $4 trillion due to Covid-19 impact on tourism – report Tourism revenue recorded a 76 percent decline from $498 million in 2019 to $121 million in 2020 due to the pandemic restrictions. In 2021, Rwanda’s tourism revenues were $164 million, a 25 per cent increase from $131 million in 2020. The country welcomed more than 512,000 international visitors in 2021. To drive the sector’s recovery, Rwanda eyed an eight strategy approach that, among others, looked to capitalise on the Black American market which is showing interest in discovering the African continent. In May 2022, GlobalData, a data and analytics company, indicated that international departures were expected to improve to 82 per cent in 2023 and 97 per cent in 2024, before making a full recovery by 2025 at 101 per cent of 2019 levels with a projected 1.5 billion international departures. ALSO READ: RDB banks on sports tourism to recover from Covid-19 impact Before the Covid-19 pandemic hit, the target was to double the numbers to $800 million by 2024. The sector has attracted Foreign Direct Investments with major international hotel brands setting up shop in the country, including the Marriott, Raddison Blue, Park Inn by Raddison, Sheraton, Protea, Golden Tulip and Zinc.

News

FEATURED: How Rwanda's tourism industry can leverage data for growth