Nigeria dominates hotel sector growth

NIGERIA is projected to be
the fastest-growing market
from a revenue perspective
over the next five years,
mainly due to an improved
economy and expansion in
the number of overall rooms.
This was revealed at a
presentation on the hotel
industry by PwC last month.
Africa’s hotel sector itself
is poised for further growth
in the next five years amid a
volatile economic climate.
The presentation featured
projections for five countries
– South Africa, Nigeria,
Mauritius Kenya and
Tanzania.
In Nigeria, overall hotel
room revenue is expected
to expand at a 14,6%
compound annual rate to
R7,6bn in 2021 from R3,8bn
in 2016.
On the flipside, Mauritius
is expected to be the
slowest-growing of the five
countries, with a 6,2%
compound annual increase
in room revenue. In Kenya,
hotel room revenue is
expected to expand at a
7,5% compound annual rate,
while in Tanzania, tourism
is the largest industry and
therefore total room revenue
is expected to rise to R4,6bn
in 2021 from R3,3bn in
2016.
“The hotel market in
each country is affected
by both the local and
global economy, with some
countries being more
dependent on foreign
visitors than others. We are
also seeing certain local
governments continuing to
invest in infrastructure and
implementing other plans
to unlock the substantial
potential that this industry
has to bring,” says Pietro
Calicchio, hospitality and
gaming industry leader of
PwC Southern Africa.  
a way that suits them and
their business needs,” says
Michael Vincent, head of
learning and development at
Travel Counsellors.