2017 may be a good year to invest in hotels in Africa. Travel and tourism in Africa account for 8.1% of the continent’s GDP.
CNBC reports that Africa’s tourism sector quadrupled in size in less than 15 years, growing 4 per cent in 2014. Only Southeast Asia recorded more growth with 6 per cent. Travel and tourism, currently responsible for 8.1 per cent of Africa’s GDP, are forecast to rise at 4.9 per cent per annum until 2025.
Recent research shows investor sentiment for hotels in Sub-Saharan Africa remains positive despite economic headwinds in key markets. David Tarsh, Managing Director of Tarsh Consulting and Organizer of the Africa Hotel Investment Forum told CNBC: “The level of confidence among investors is high, as growth rates in several African countries are high. Addis Ababa and Nairobi are becoming real hubs for Africa.”
Revenues will not come by themselves. Travel and tourism do require well-trained, professional staff. “Hotels need to invest in their people. Fortunately, it is happening.”
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