Ghana as one of the emerging hotel markets0
The hospitality sector in Africa’s emerging markets looks set to profit from foreign investment and an influx of foreign travelers.
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, Hospitality & Gaming Industry leader for PwC Southern Africa says:
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.
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.
Ghana as emerging hotel market.
The hotel sector in Ghana has remained resilient despite recent global economic challenges. Following the collapse in the oil price and that of other commodities, the government has taken steps to diversify the economy, including promoting the hospitality and tourism sector. Ghana’s hospitality industry grew 1.2% from 2015 to 2016. The World Travel & Tourism Council (WTTC) expects Ghana’s tourism industry to expand by 5.6% in 2016 and maintain an annual growth rate of 5.1% per annum from 2017 through to 2027.
A number of internationally-branded hotels are based in Accra. As at May 2017, there were 2 723 hotels and lodges in Ghana.
There is expected to be an increase in the number of business travelers to the country as the government embarks on a number of initiatives to stimulate economic growth. The government is also making improvements in transport infrastructure, with the construction of a third terminal at Accra’s Kotoka International Airport and allocation of funds for the repair of roads to popular tourist destinations. The hotel industry is expected to grow 1.1% in 2017, 2.1% in 2018 and 2.3% in 2019.
Having regard to the investment by foreign investors in the industry through the establishment of high-rated hotels, and an increasing number of tourists and business travellers, it is expected that there will be continuous growth in the industry.
Distributed by APO on behalf of PricewaterhouseCoopers LLP (PwC).