Luxury tourism is growing in Africa

Luxury tourism is growing in Africa

Africa is increasingly attracting investment in luxury tourism.

Today, Africa is considered one of the most promising regions for hotel developers. Luxury tourism is growing in Africa. In addition to small chains and independents, major global hotel groups have arrived en masse on the African continent in the last four quarters. Their installation contributes to the growth of tourism investments boosting the overall economy of these countries of which Madagascar is one..

In September 2019, Accor hotels, Hilton, Marriott International and Radisson Hotel Group opened 2.800 rooms and signed contracts for 6.600 rooms spread across Africa.

What’s Driving Rapid Hotel Growth in Africa ?

Hotel development is one of the major assets for an emerging economy. Francophone Africa is evolving rapidly in the sector. According to’World Tourism Organization, international tourist arrivals in Africa have increased by 7% en 2018, one of the fastest growth rates in the world with East Asia and the Pacific.

The flight data analyst, Forward Keys, recently confirmed that this trend is continuing. Last year, African aviation has experienced a boom in 7,5%, which places it at the top of the fastest growing sectors for the first quarter 2020. On January 1st, bookings on international flights had increased by 12,5% and 10,0% to African countries.

On the other hand, Philippe Doizelet, managing partner of Horwath HTL, first hotel consultant in West Africa, recently confided the factors fueling investment growth in the hotel sector in West Africa. These are air connectivity, better economic growth, currency and demographics. “In many African countries, people see their standard of living improving and are eager to seize opportunities. We see this mindset reflected throughout the hospitality industry. It’s incredibly refreshing and attracts business”, Does he say.

What about the Big Island ?

For the case of Madagascar, the repercussions of the first edition of “Wave Madagascar” are not less. A partnership with the International Luxury Hotel Association (ISLAND) was signed with the Ministry of Transport, tourism and meteorology (MTTM) towards the end of last year.

This signature allowed Madagascar to benefit from extended channels towards potential investors in luxury hotels.. This partnership provides access to a network of decision-makers and presents Madagascar as a destination with intact and undiscovered potential.. The government efforts recently undertaken in the tourism sector are felt by the peak of tourist attendance in Madagascar around the 42.000 December 2019.

Problems threatening investment attractiveness

Horwath HTL, an international tourism and hospitality consultancy agency, identified factors threatening economic progress and the establishment of investors in Africa. Among the main ones are security issues, political stability, governance and the increase in public debt. “When the population is poor and the State is weak, corruption is common », explains Philippe Doizelet. As for the increase in public debt, it is contracted in the form of long-term loans in developing countries from donors for the construction of infrastructure. That said, the debt-to-GDP ratio of many West African states is still lower than that of many highly developed countries.

Currently generating nearly 7% you PIB Malagasy, tourism promises significant progress for the country's economy. Lately, the 31 January 2020, the Accor hotels group inaugurated the Novotel Convention & Spa in Antananarivo. This development will propel Madagascar's notoriety in terms of luxury tourism and will be a major attraction for investments linked to the sector..

In the province of Mahajanga, in Madagascar, l’Hôtel★★★ Restaurant gourmand Coco Lodge Majunga also contributes to the development of tourism. “We participate in improving the provision of tourist and hotel services on our Big Island”.

Coco Lodge Majunga, it's a Hotel★★★, a gourmet Restaurant, one Four-wheel-drive renter with guide driver and Event organizer (conferences, seminars, workshops, lunches/dinners with themes, wedding, anniversary, boy-girl stag, …).

For your holidays or business trips, the whole team of the Hotel ★★★ Coco Lodge is delighted to meet your expectations and satisfy your needs. Our goal is to offer you an unforgettable stay in the city of Majunga. Coco Lodge TO organises tours of Majunga and its surroundings and many more. Discover the Anjohibe Caves, Ankarafantsika National Park, Sacred Lake, Cirque Rouge and the beaches. Not to mention the Antrema reserve, the lighthouse of Katsepy, Papamena, The Poseidon, Mahavavy Kinkony Complex, Namoroka tsingys, ….

By #CocoLodgeMajunga