Challenges

Despite the growth, T&T industry’s GDP of African countries totalled around $42.1 billion in SSA with 37.4 million international tourists in 2017 (WTTC). Africa’s share of international tourist arrivals is 5%. Europe’s share is 51%, Asia and the Pacific 24%, Americas 16% and the Middle East 4%.

The region’s air transport infrastructure has a weak domestic airline industry and a lack of airport openness. Air travel in Africa is twice expensive than in Latin America, four times than in the United States. 

Tours in Sub-Saharan Africa cost travellers around 25-35 percent more than other parts of the world. (due to the high cost of airfares, fuel, taxes, utilities and a heavy reliance on imported goods and services). Fuel is 30% expensive than Europe. 50-55% tax on air tickets affect the business.

The operation management of airlines and airports need to improve and solve unreliable services, complex itineraries issues. It is expensive to develop hotels in countries with higher import duties, weaker infrastructure because the costs are passed on to consumers.

The lack of workforce proper training, qualified personnel is also a serious issue. There is a need to build the capacity of young Africans to take over managerial roles in future. There is a need for hospitality training establishments on customer service to meet international standard. There is a need to train airports ground staff on public relations…

Opportunities

According to the World Travel and Tourism Council, tourism in Africa  is expected to contribute $269 billion to the GDP and create 29 million new jobs by 2026. By then, African tourism will be on its way to a stable industry.

Africa present best opportunities in coming years due to globalization, infrastructure development projects and AfCfTA implementation. There is a rapid growth on business-related travel due to the discoveries of minerals and hydrocarbons in the continent. 

African travel is projected to increase due to a stable growing middle class, job security, AfCFTA.

The African Union Agenda 2063 also puts tourism industry at the centre of its objectives. Most of African governments support tourism because of export of services. 

They are shifting away from relying on commodities and agriculture only. The services industry to travellers contribute directly to the economic growth of the continent.

Africa needs more quality hotels to bring their much-needed expertise. There are a limited number of accommodation offering with global brand names such as Hyatt, Ramada, Serena…The hospitality sector is still in its infancy but growing rapidly to serve both domestic and foreign guests.

The large hotel demand is in multiple cities with a large population, a diversified economy, strong economic growth, increasing urbanisation and major air transport hubs such as Nigeria, Angola, Ghana, Ethiopia, Kenya, Tanzania, Mozambique, Uganda, Cote d’Ivoire, Senegal, DRC…

Investment opportunities exist in developing infrastructure, including hotels, restaurants, holiday resorts, transportation facilities, cruise ships. Upgrading airports, roads and other essential infrastructure to enhance the overall tourism experience.