Tourism : an industry that is recovering…and renewing itself
Announced, confirmed! The tourism industry is back on the growth track after years plagued by COVID-19. This is an opportunity for players in the sector to nurture new ambitions, diversify and develop new niches.
Analysis by Dounia Ben Mohamed
A report on the hotel and hospitality sector published in January revealed that “African travel and tourism has potential for immense growth after showing a faster post-pandemic recovery than anticipated.” The research report by Moore and dmg events, shows that industry players in 17 African countries are optimistic about the sector’s prospects.
“Even with the challenges facing the sector, almost 82% of respondents were positive about the next six months, while 90% felt positive about the sector over the next one to two years,” said Evan Schiff, Portfolio director at dmg events.
the recovery is in motion across Africa and the opportunities for hotel and hospitality operators are vast
This optimism is fueled by the fact that business is expected to pick up again in 2022, after two years plagued by the COVID-19 pandemic, which cost the African tourism sector $87bn, according to German market and consumer data company Statista. “This is a big increase over the -73% during the pandemic globally. Sub-Saharan Africa lagged 43% behind its pre-pandemic key performance indicators but the recovery is in motion across Africa and the opportunities for hotel and hospitality operators are vast,” adds Schiff.
Although occupancy rates are still lower than before the pandemic, the first figures for 2023 confirm the trend. International tourism is on track to return to pre-pandemic levels, with twice as many people travelling in the first quarter of 2023 compared to the same period in 2022, according to the UNWTO barometer. 235 million tourists travelled abroad in the first three months, more than double the number for the same period in 2022. More than 960 million tourists travelled abroad last year, meaning that two-thirds (66%) of pre-pandemic levels have been recovered.
And while the Middle East recorded the best performance, as the only region to exceed 2019 arrivals (+15%) and the first to recover pre-pandemic levels for a full quarter, Africa reached 88% of pre-pandemic levels. “The start of the year has shown again tourism’s unique ability to bounce back, “said UNWTO Secretary-General Zurab Pololikashvili. In many places, we are close to or even above pre-pandemic levels of arrivals. However, we must remain alert to challenges ranging from geopolitical insecurity, staffing shortages, and the potential impact of the cost-of-living crisis on tourism, and we must ensure tourism’s return delivers on its responsibilities as a solution to the climate emergency and as a driver of inclusive development. »
Africa, which also faces its own and other challenges, is nevertheless regaining some of its attractiveness, and tourism is playing an important role in African economies. In Kenya, for example, tourism revenues are expected to increase by 83% in 2022. Although not back to pre-pandemic levels, Kenya, the economic engine of East Africa, is regaining its position as one of the continent’s top tourist destinations, thanks largely to its wildlife. In 2022, around 1.5 million tourists visited Kenya, a 70% increase on 2021, but still not back to pre-pandemic levels, with tourism contributing 10% to pre-COVID GDP despite the gradual lifting of restrictions. In 2019, around 2 million tourists will visit the East African country. By 2022, American tourists will be the most numerous, accounting for 16% of arrivals, ahead of those from Uganda (12%), the UK (10%) and Tanzania (10%).
In Rwanda, tourism receipts are also on the rise, reaching US$445 million in 2022, up 171.3 per cent on the previous year. The country attracted around 110,000 visitors to its national parks in 2022, a 142.4 per cent increase on 2021, according to the report. The country, which aims to reach $800 million by 2024, has become world famous for its gorillas, a unique tourist attraction in the region that generated $113 million in revenue, according to a report published by the Rwanda Development Board (RDB). « We have also seen a 40.5% increase in total revenue from goods and services in 2022. This is a positive sign of movement in the economy despite the disruption in the global supply chain, » said Clare Akamanzi, RDB Director General. And to achieve its new ambitions, Rwanda is now benefiting from the opening of the first direct route between Paris and Kigali in Rwanda, operated by the national airline RwandAir. With RwandAir operating three flights a week, Paris will be the 25th destination served by the national airline, as the country develops a number of niche markets such as business, sports and eco-tourism to increase its appeal as a tourist destination.
Egypt, South Africa and Morocco in the top three
But it is still a long way behind Morocco, Africa’s third most attractive country for tourism. Morocco’s tourism and trade sectors have suffered greatly over the past two years as a result of the COVID-19 pandemic, but the country has launched a series of measures to help return to pre-pandemic records. « The tourism industry has shown good resilience and has managed to return to its pre-COVID performance, thanks to a series of initiatives launched by the government to get the tourism industry back on track with its past achievements, » Moroccan Tourism Minister Fatim-Zahra Ammor said last month.
As a result, the Spanish consultancy firm Bloom Consulting has ranked Morocco as one of the best places to visit, making it the third most attractive tourist destination on the continent. With a “BBB” Country Brand Ranking (CBS), Morocco ranked 43rd worldwide in tourism.
Still behind Egypt, which remains the continent’s top tourist destination, and South Africa, which is second on the continent and 41st globally, Mauritius and Tanzania are fourth and fifth respectively. Five countries that remain the leading tourist destinations in Africa. And they intend to stay that way.
Starting with Morocco, which has drawn up a new roadmap to attract 17.5 million tourists by 2026, generating 120 billion dirhams in foreign exchange earnings and 200,000 new jobs (80,000 direct and 120,000 indirect). A four-year, MAD 6.1 billion ($595 million) tourism revitalization program will modernize tourism infrastructure, diversify tourism products and improve air services. The aim is to « reposition tourism as a key sector of the national economy », making Morocco one of the world’s leading tourist destinations, according to a press release from the Prime Minister’s Office, and boosting a sector that accounts for 7% of Morocco’s gross domestic product (GDP).
Air capacity to Africa has increased by 65% compared to last year
Morocco is not alone in relying on air travel to develop its tourism business. Air capacity dedicated to Africa has increased by 65% compared to last year – a barometer and driving force for the tourism industry – and the African aviation sector is booming as international air travel to Africa rebounds. This is particularly marked by the return of Chinese tourists to Africa. The United Nations World Travel Organization’s latest World Tourism Barometer confirms that the return of Chinese tourists, the world’s largest outbound market in 2019, will significantly boost international arrivals to Africa and bring them back to 2019 levels. In that year, Chinese international arrivals were recorded at 155 million, more than double Africa’s inbound arrivals, which totaled 68.8 million over the same period.
In recent years, there has been an increased interest in exploring Africa in general
African Americans are also confirming their interest in the continent, driven by travelers’ “homecoming” experiences, part of a larger trend of greater overall interest in Africa travel among consumers seeking cultural experiences. “In recent years there has been increased interest in exploring Africa in general,” said Laurence Pinckney, CEO at ZenBiz Travel LLC. “Tourism boards from South Africa and Ghana and their commercials and promotions have made a significant contribution to this awakening.”
Promoting intra-African tourism
Intra-African tourism remains a niche with great potential that needs to be tapped. Gathered in Gaborone, Botswana, last October for the Africa Tourism Leadership Forum, the main objective of which was to promote intra-African tourism, Africa’s leading tourism operators pledged to do so. But the business faces major challenges, starting with roads in poor condition; limited air connectivity in certain parts of Africa, which means connecting flights to neighboring countries have to go through a regional hub or even outside the continent; not to mention the issue of visas. The entry into force of the AfCFTA should remedy this situation. By reducing the advantages for tourism, African countries will see a huge influx of traffic, particularly from the BRICS bloc, and a huge influx of foreign exchange.
Intra-African trade is currently one of the driving forces behind new growth in the sector. This approach is being taken by countries such as Kenya, which is focusing on promoting regional tourism amid uncertainty in traditional markets. “To revamp the sector, our focus from 2023 will include developing strategies that will impact a wider population thus improving Kenyans livelihoods. This will include promotion of regional tourism to enhance performance of the African markets and development of niche products such as cruise tourism, adventure tourism, culture and sports tourism,” Peninah Malonza, the Kenyan Cabinet Secretary for Tourism said earlier this year. Of the 1.48 million tourists who visited Kenya, 43% (641,975) came from Africa, mainly for business and to visit family and friends. The aim now is to increase this number by targeting African tourists. « Kenya is one of the pilot countries for the single aviation market in Africa, and this will give a significant boost to our efforts in this direction. » In October 2022, Kenya and Uganda signed an agreement to boost regional tourism by jointly promoting the region’s beaches and parks.
Africans are also popular tourists in South Africa. « In 2022, African tourist arrivals were 9% higher than in 2019. This reflects the fact that this group has recovered faster than foreign tourists, and while they may not be big spenders, Africans continue to play an important role in the overall recovery of our tourism industry. And while some of these visitors may not be considered leisure tourists, if we only look at air arrivals, excluding cross-border visitors, the figures for the first four months of 2023 are 89% of 2019 levels, indicating a strong recovery, » said South Africa’s tourism minister. However, major challenges remain, such as visa issuance, the cost of the destination compared to others on the continent, as well as security concerns and negative perceptions of South Africa.
Almost two-thirds of travelers look for sustainable development when they travel
In South Africa, as elsewhere, tourism is increasingly moving towards a sustainable development approach. A demand clearly expressed by tourists. According to a report by the World Travel & Tourism Council (WTTC) and Trip.com Group, nearly two-thirds of travelers look for sustainable development efforts when they travel. This includes the opportunity to support the local community, and there are many support initiatives such as Pack for a Purpose and Micato Safaris’ AmericaShare program, which supports children’s education in East Africa.
