9th Annual edition: Unparalleled experience
The Outlook provides an overview of how the hotel industry in South Africa, Nigeria, Mauritius, Kenya, Namibia and Tanzania is expected to develop over the coming years. It details the key trends observed and discusses the challenges facing the sector, as well as considering its future prospects.
rise in room revenue growth since 2018.
rise expected in available rooms growth.
ADR increase expected from 2018 to 2023.
Overall room revenue in South Africa, Nigeria, Mauritius, Kenya and Tanzania rose 7.4% in 2018, up from the 1.9% increase in 2017, principally reflecting a 28 percentage point turnaround in Kenya, a 15.4 percentage point turnaround in Tanzania, as well as a 7.2 percentage point improvement in Nigeria. Mauritius continued to grow at double-digit rates in 2018 but room revenue growth in South Africa fell to only 0.5%.
In Tanzania, the impact of the 18% VAT on tourist services and rising visa costs for business visitors that hurt the market in 2017 was largely absorbed in 2018 and guest nights rebounded. Nigeria was helped by a pickup in the economy during the latter part of the year and an increase in guest nights.
We project Tanzania and Kenya to be the next fastest growing with compound annual increases of 8.2% and 7.4%, respectively. Increased room capacity, a strong economy, growth in tourism from India and China, and Tanzania’s appeal as an exotic destination will fuel growth over the next five years.
(Main picture: Montecasino - Image courtesy of Tsogo Sun)
Image courtesy of &Beyond Hotels
Image courtesy of Legendary Expeditions
Hotel room revenue for the five markets as a group will increase at a 5.8% compound annual rate to R50.6 billion in 2023 from R38.1 billion in 2018.
In 2018, Tanzania was named the Best Exotic Destination by the Russian National Geographic Traveller. Tanzania is well positioned to attract more adventure tourists, which is becoming a more important sector in the overall tourism industry.
Manager, PwC Tanzania
Tel: +255 (0) 22 219 2000
Associate Director, PwC South Africa
Tel: +27 (0) 11 797 5687