adminNAIROBI. – Rapid economic growth, political stability and an abundant youthful workforce have fuelled investments in hospitality industry across Africa, executives from global hotel brands told Xinhua on Wednesday.
Speaking on the sidelines of the Africa Hotel Investment Forum in Nairobi, industry executives were bullish on the African market and promised to accelerate their forays in the continent for the long haul.
“The outlook for the African continent is bright as big players in the hotel industry venture into this untapped market that has potential for growth.
“Our investments across Africa have paid off,” the president and CEO of Kempinski Hotel Group, Retto Wittwer, told Xinhua in Nairobi.
Kempinski is a German hotel brand that targets high-end market and its recent foray into the African market was informed by a burgeoning middle and upper income population that has driven the demand for luxury goods and services.
“We are one month old in Nairobi but have established a presence in Chad, Djibouti, Ghana and Seychelles. We plan to venture into Rwanda and the Democratic Republic of Congo soon,” Wittwer said.
Since its founding in 1897, Kempinski Hotel Group has dominated the luxury segment.
Wittwer stressed that Africa was ripe for investments in luxury hotels as a resource boom and demographic dividend accelerates economic prosperity on the continent.
“The hospitality industry in Africa has maintained a growth trajectory and this is good news for different players who have tailor made products on offer.
“We believe innovations and better understanding of this market will enable us to remain afloat,” Wittwer remarked during an interview.
He allayed fears that acts of terrorism and sporadic civil strife will dissuade global hotel brands from investing in Africa.
“Some of our hotels are 100 years old and in this period, there have been wars, revolutions and phenomenal disasters across the globe yet this has not stopped our operations. There is always a silver lining in every dark cloud,” Wittwer said.
The general investment climate in Africa has improved against a backdrop of political stability alongside progressive and accountable governments that have prioritised economic growth.
The president and managing director of Middle East and Africa region at Marriott, Alex Kyriakidis, revealed that global hotels chains are bullish on the African market.
“Resurgent African economies have not escaped the attention of investors in the hospitality industry. Our presence in Sub-Saharan Africa is a testimony to our faith in this new market,” said Kyriakidis.
He disclosed that international hotel brands prefer to penetrate the African market through franchises that have a firm grasp of market trends in the continent.
Sub-Saharan African countries are currently a prized destination for international hotel brands and the trend will continue thanks to a friendly investment climate and competitiveness.
The managing director of W Hospitality Group, Trevor Ward, revealed that leading hotel brands and fund managers have intensified their investments in Africa.
“The general picture points to a revival of Africa’s hospitality sector and key players want to seize the moment. Africa presents the largest and most promising frontier market that has attracted foreign direct investments in all sectors least of all travel and tourism,” Ward remarked.
He disclosed that the top 10 destinations for hotel investments in Africa include Egypt, Tunisia, Libya, Morocco, Algeria, Nigeria, Kenya, Ghana, South Africa and Gabon. – AFP.
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