KSG - AfriTvest (African Tourism Invest)

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  

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