A brief overview of investment in African Tourism
Summary of UNTWO (World Tourism Organization) 2016/16 report
Destinations worldwide are increasingly opening up to tourism as it:
- creates jobs and enterprises,
- Generates export revenues
- Leads to infrastructure development (UNWTO, 2015)
Tourism is a major category of international trade:
- Total value of tourism exports – US$1.5 trillion
- US$ 4 billion a day on average
- International tourism represents 7% of the world’s exports in goods and services
- Tourism ranks third after fuels and chemicals and ahead of food and automotive products
- In many developing countries, tourism ranks as the first export sector. (UNWTO, 2015)
International tourist arrivals in the emerging economies (Asia, La=n America, Eastern Europe, Africa):
Growing at double the rate (4.4% per year) that in developed economy destinations (+2.2% a year)
Number of arrivals in emerging economies expected to exceed those in advanced economies before 2020
In 2030, 57% of international arrivals will be in emerging economy destinations (versus 30% in 1980) and 43% in
advanced economy destinations (versus 70% in 1980) (UNWTO, 2015)
UNWTO stats indicate:
- Africa attracted 53 million international visitors in 2015
- Tourism growth: 5.4% average annual growth between 2005 and 2014 (compared to the world: 3.8%).
- Tourism Receipts: USD33 billion (Euro 30 billion).
- UNWTO projects international tourist arrivals to grow to 7% in Africa by 2030.
National governments have been at the forefront of large hospitality infrastructure developments with:
- Limited success,
- Failure in most cases
- Government is not known to be a successful tourism operators
- Liberalization of the tourism sector
New approach to tourism infrastructure development:
- Governments to create a conducive environment
- Private sector to invest and manage
Growing interest in financing tourism development in Africa by:
- Commercial banks and global brands
- National development finance infrastructures such as the IDC in South Africa
- International Development Finance institutions such as IFC, MIGA, AFREXIM
- Investment and development by individuals, be it part of a total paradigm shift, life style change, social responsibility, economic evaluations or a combination of all