News for the Hospitality Executive
[2 August 2011] Africa now ranks among the fastest growing economic regions in the world, according to a recent report (June 2011) by the McKinsey Global Institute. The hotel sector reflects this exciting trend with established and international brands and developers entering the marketplace and developing their opportunities with long term growth prospects, including: Hilton Worldwide, Marriott International and The Rezidor Hotel Group. Recent construction pipelines indicate that there are over 190 planned hotel projects in planning and development, with combined guestrooms totally over 37,000, the most popular locations are Morocco, Nigeria and South Africa.
The continent’s real GDP rose by an average of nearly 5% per annum over the last decade and with the collective GDP of $1.6. Trillion (in 2008) is now roughly equal to Brazil or Russia, reflecting the flourishing growth in sectors including: telecoms, banking, retail and construction with impressive increasing foreign investment.
Examples of recent planned hotel developments and openings include:
Jonathan Worsley, Chairman of Bench Events, organiser of Hotel Investment Conferences in developing markets throughout the world said “we have been aware of the huge potential of Africa for some time and have been actively building relationships with governments and consultants in the region to launch a hotel investment conference, which I am pleased to say will take place in Casablanca from 26-27 September this year…much of the problem has understandably, been a lack of knowledge of how to successfully carry out business here. There have been many challenges which governments have been working hard to resolve. The purpose of the conference is to show delegates how successful investors and operators have overcome these hurdles, and to explore ways in which to work in partnerships to attract further hotel investment to the region.”
As further outlined in the McKinsey report, the rate of return on foreign investment in Africa is higher than in any other developing market (from $9 billion in 2000 to $62 billion in 2008) and providing early entry adopters the chance to develop their own markets and establish brand presence and profile whilst shaping the future economic climate and promoting new levels of tourism (both domestic and international).
The World Travel Organisation has recently forecast that in-bound tourism (to Africa) will increase over 50% from 2010 to 2020 while Africa’s combined consumer spending is now $860 billion and set to continue to grow. A recent Financial Times article (published following the World Economic Forum 2011 in Africa) reported that more than 10 African economies are forecast (by the African Development Bank) to grow at more than 7 per cent this year. Finance experts use the returns achieved by the World Bank’s International Finance Corporation (IFC) as a good guide to what is possible. From 2000 to March 2010, the IFC saw a return of almost 22 per cent a year on its African private equity portfolio, higher than for any other emerging markets region - a trend experienced by many of the large investment funds.
HICA is organised by Bench Events in association with SMIT and the TBCSA.
Sponsors of HICA:
HICA is sponsored by Accor; Corinthia Hotels; Jones Lang LaSalle Hotels; Marriott; Actif Invest; Alhif; Alliances; Anantara Hotels, Resorts, Spas; France 24, Hilton Worldwide; Horwath HTL; h partners; Hyatt; IHG; Interedec; Madaef; Rezidor Hotel Group, Starwood Hotels and Resorts; T Capital, Tourism & Leisure Europraxis Consulting; T Capital; WTAG; and W Hospitality Group.
Pippa Isbell or Jonathan Rivlin
+44 207 259 1100