Horwath HTL Special Market Report: Morocco
With its coastline, mountains and desert, a rich cultural and historical heritage and its strategic location within the Mediterranean, Morocco benefits from a strong tourism potential.
Press Releases
Easter has brought fresh wave of local tourism to Kenyan coast
Kenya's idyllic coastline has seen tourism numbers swell over the Easter weekend, mainly thanks to local visitors taking advantage of the ongoing school holidays. The East African country's coast beckons tourists not only from Kenya, but also from neighbouring countries such as Uganda, Tanzania, Rwanda and Burundi and the faraway shores of China and Korea, all flocking to Kenya's pristine white beaches and the crystal blue waters of the Indian Ocean. Kenya benefits from 536 km of beautiful coastline and has long been a desirable destination for those charmed by age-old tales of traders and sailors arriving to the continent.
Destination Africa: big growth in international arrivals
Africa is seeing a significant growth in international air travellers – arrivals were up 10.3% between September 2016 and January this year. Europe remained the leading source market with a 47.3% share, while Asia Pacific was the fastest growing, up 21.7%.The encouraging figures for the continent's economy are released today by ForwardKeys, which monitors future travel patterns by analysing 16 million flight reservation transactions each day.The data comes ahead of the influential Africa Hotel Investment Forum (AHIF) which will again run alongside AviaDev Africa in Kigali, Rwanda on October 10 to 12. Organised by Bench Events it brings together leading executives and investors from the worlds of aviation and hotels, alongside top government officials and politicians.
Market focus: Conakry, Guinea - Horwath HTL
Guinea has witnessed a boom in the hotel sector, supported by the mining industry. These hotel developments are mainly concentrated in the capital, Conakry. Guinea was severely hit by the Ebola outbreak in 2014 and experienced a dramatic slowdown in the economy. After two difficult years, the country seems to be gradually recovering. Over the last 5 years, we have witnessed significant changes in the market, with the opening of renovated hotels and a 4* international hotel. The long-term outlook remains positive and Guinea, despite the crisis, has a significant pipeline of hotel projects.
Horwath Special Market Report - Sierra Leone
Affected by more than 10 years of civil war, the acceptable hotel supply in Sierra Leone is very limited and concentrates mainly in Freetown. The market of the capital city has remained immature, as supply has been lagging behind a growing demand, boosted by the mining sector. Showing strong potential for growth, the hotel market has hence experienced significant changes since 2010, with the development of new properties and the arrival of branded supply. In 2014 and 2015, the economy was strongly disrupted by the Ebola outbreak, compounded by the decline of commodities prices, which also affected the hotel market.
Assessment of the Hotel Market in Rwanda - HorwathHTL
Rwanda is the smallest country in the East Africa region it has managed to conquer the news and receive highest appreciation for the economic and social achievements during the last two decades. With a total population of around 12 Million on a land area of 26,338 km² Rwanda is the highest densed country, landlocked and a member of East African Community EAC which comprises Kenya, Tanzania, Burundi, Uganda and South Sudan. Rwanda is constantly among the top performers on various indicators on the continent; indicators such as economic progress, governance and healthcare featuring at positions fourth, third and sixth, respectively, in the top 3 best places in Africa for doing business.
South Africa’s Hotel and Tourism Sector Set for Steady Growth as Visitor Numbers Continue to Grow: PwC Outlook
South Africa's hotel industry is set for steady growth in the next five years driven by an increase in the number of foreign visitors into the African continent.Pietro Calicchio, Industry leader of Hospitality & Gambling, PwC Southern Africa (www.PwC.com), says: "Although the South African economy has weakened considerably, the overall outlook for hotels in South Africa is expected to remain positive."According to PwC's 6th edition Hotels Outlook 2016 – 2020, revenue from hotel room accommodation in South Africa rose 8.1% in 2015 to R14.2 billion, reflecting an increase in stay unit nights and a 6.5% rise in the average room rate. Overall, hotel room revenue is projected to expand at a 7.8% compound annual rate to R20.6 billion in 2020. PwC's report features information about hotel accommodation in South Africa, Nigeria, Mauritius, Kenya, and Tanzania."The devaluation of the rand and the relaxation of certain visa regulations has had a positive impact on the tourism industry in South Africa, making the country a more attractive tourism destination. This has also had a positive impact on the number of foreign visitors to South Africa over the past six months," says Calicchio.The new visa regulations had a sharp impact on the South African tourism industry. After growing at an 8% compound annual rate between 2009 and 2013, the number of foreign overnight visitors rose only 0.2% in 2014 before falling 6.8% in 2015 – the biggest decline in six years, according to official statistics. China had the largest decrease of 46% in 2014, while the decrease from India was 23.5%. Visits from China edged up 2.2% in 2015, but remained 45% lower than the peak in 2013, while visits from India fell an additional 8.5% in 2015 for a cumulative 30% decline over the past two years.A key factor cited as contributing to the decline was the requirement that foreign travellers appear in person at South African embassies to have their biometric information taken. However, some countries such as India, Russia and China have very few South African visa processing centres.In October 2015, some of these regulations were eased and the Department of Home Affairs is considering introducing further amendments.Overall, in 2015 there was a decline in the number of foreign travellers to South Africa from every region except the Middle East and North Africa. Of non-African countries, the UK is still the largest source of visitors to South Africa at 407 486 in 2015, an increase of 1.4%. It was one of the few countries from where visitors increased in 2015, but that gain did not offset the overall 6.8% decline from 2014. Visits from the US dipped below 300 000 in 2015, down 3.9% from 2014. Germany was down 6.5% in 2015, while Australia fell 10.8%.Of African countries, the largest numbers of foreign visitors to South Africa in 2015 came from Zimbabwe (2.1 million), followed by Lesotho (1.5 million) and Mozambique (1.3 million) but all were lower than in 2014.On a more positive note, the number of monthly overnight tourist visitors to South Africa started picking up towards the end of 2015 and rose above the one million mark for the first time in January 2016, with international visitor numbers up by 16.8% for the months of January to April 2016 when compared to the same period in 2015. Visitor numbers from Europe have increased by 13.6%, China 38.0% and North America 16.4% through to April 2016 when compared to the first four months of 2015. For 2016 as a whole, a 12.4% increase in foreign visitors is anticipated.Hotel accommodation: South Africa – Nigeria – Mauritius – Kenya - TanzaniaThe number of hotel rooms planned in Africa has increased from prior years in the wake of a number of developments across the continent.Overall, room revenue in South Africa, Nigeria, Mauritius, Kenya and Tanzania rose 6.7% in 2015, the largest gain since 2011. Tanzania had the largest increase with a 14.4% gain, the result of a large increase in the average room rate that offset a drop in stay unit nights."It is promising to see a growing number of new hotels that are planned for the South African market over the next five years. We are forecasting an additional 2 600 hotel rooms to be added over the next five years," says Calicchio. "We forecast that hotel room revenue will grow by 11.9% in 2016 to R15.8 billion." The interest in new hotel developments in Cape Town reflects its strong growth rates and its appeal as a tourist attraction.Five-star hotels had the highest occupancy rates in the market at 79.5% in 2015, up from 70.7% in 2014 as stay unit nights increased by 12.5%.The hotel sector in Mauritius experienced an increase in stay unit nights in 2015, but a drop in the average room rate that resulted in a 6.7% increase in room revenue. Nigeria's long-term prospects for the hospitality sector remain positive, though the impact of its current weaker economy is likely to reflect in near-term hotel performance. Kenya's economic growth has been strong and a number of initiatives have contributed to a recent increase in the tourism industry.South Africa: The Outlook (2016 – 2020)With occupancy rates and visitor numbers on the rise, there is renewed activity in the hotel sector. There are a number of major hotels expected to open in the next five years and several others in the planning stage. The number of available hotel rooms are projected to rise at a 0.8% compound annual rate to 63 700 in 2020 from 61 100 in 2015.Stay unit nights are expected to increase at a 1.9% compound annual rate to 14.6 million in 2020 from 13.3 million in 2015. With stay unit nights growing faster than room supply, the occupancy rate for hotels is forecast to rise from 59.6% in 2015 to 62.6% in 2020.Nigeria – Mauritius – Kenya –Tanzania: The Outlook (2016 – 2020)The hotel market in Nigeria has not fared as well as South Africa with stay unit nights dropping 12% and room revenue down by 3.6% over the past two years. There are a number of new hotels planned or under construction and we forecast an additional 4 700 rooms to be added in Nigeria during the next five years. Hotel room revenue is expected to grow to US$ 507 million in 2020 from the US$321 million achieved in 2015, due to increases in both stay unit nights and average room rates. The number of tourist arrivals to Mauritius increased by 10.9% in 2015, the largest increase during the past five years. The number of available hotel rooms is expected to increase at a 2.8% compound annual rate, rising to 15 600 in 2020 with hotel room revenue forecast to grow at a 10.6% compound annual rate to Euro 920 million in 2020 .Kenya's hotel market is recovering, with growth being achieved for the first time in four years due to an increase in the average room rate even though stay units fell 2.8% in 2015. Revenue is projected to grow at 6.1% compounded annually to 2020. Tanzania's hotel room revenue amounted to US$222 million in 2015 and is expected to grow by 10.8% compounded annually to US$371 million in 2020."The hotel market in each country is affected by both the local and global economy, with some countries being more dependent on foreign visitors than others. The growth forecast is therefore dependent on how well both the local and global economy performs and grows over the next five years.""The tourism industry continues to be one of the fastest growing sectors of Africa's economy. In spite of recent challenges, including the change in visa regulations in South Africa and the contraction of the global economy, the sector has significant potential to create jobs and uplift inclusive economic growth across the continent", concludes Calicchio.
Hospitality Market Snapshot: Cape Town
This article highlights current trends for the Cape Town hotel sector and provides an outlook for the market for 2016 and beyond.
Steady Travel And Tourism Business Performance Results For Q1 2016 – TBCSA Tourism Business Index
Notwithstanding the rising inflation and slow economic growth, overall business performance levels in South Africa's travel and tourism sector have remained steady in the first quarter of 2016. This is highlighted in the latest results of the TBCSA Tourism Business Index ("TBI"), published today by the Tourism Business Council of South Africa ("TBCSA").
Hotel development in Africa jumps 30% to 64,000 rooms
The number of planned hotel rooms in Africa has soared to 64,000 in 365 hotels, up almost 30% on the previous year, according to new figures from the annual W Hospitality Group Hotel Chain Development Pipeline Survey. The increase is largely down to strong growth in sub-Saharan Africa, which is up 42.1% on 2015 and is significantly outstripping North Africa which achieved only a modest 7.5% pipeline increase this year.A major shake-up in the rankings by country saw Angola, never before listed among the top 10, push Egypt out of second place, due to a major deal there signed by AccorHotels. The W Hospitality Group survey is published ahead of the Africa Hotel Investment Forum (AHIF), which is organised by Bench Events. The conference attracts all the major international hotel investors in Africa and is being held for the first time in Lomé on 21-22 June. A second AHIF will also take place in Kigali, Rwanda on 4-6 October.Trevor Ward, W Hospitality Group managing director, said: "The evidence from our survey is clear - investors remain confident about the future of the hospitality industry on the continent. Even when pummelled daily by low commodity prices, exchange rate problems, political challenges and poor infrastructure, Africa remains resilient."The IMF forecast for economic growth in sub-Saharan Africa is for an increase of 4% this year and 4.7% in 2017, up from 3.5% in 2015. Overall this is down on the 5-6% increase enjoyed over the past decade, but it's still double or more the forecast for the world's advanced economies, such as Europe, the USA and Japan.Matthew Weihs, managing director of Bench Events, said: "Africa is still on the up. For business, trade and capital investment, the continent remains an attractive proposition, leading to continuing demand for accommodation and other hospitality services."Detailed analysisThis is the eighth annual pipeline survey, widely recognised as the most authoritative source on hotel industry growth in Africa, particularly in revealing data on international chains signing new deals. The 2016 survey provides a full picture of hotel development across the continent - 36 hotel chains and 86 brands with more than 64,000 rooms in 365 hotels.In comparison to figures from the inaugural survey in 2009, it's possible to see how far hotel development in Africa has come. In 2009 there were 19 international and regional hotel chains contributing, with a pipeline of 144 hotels and just under 30,000 rooms.Overall in the 2016 report, it's Angola that dominates. In July last year, AccorHotels signed with AAA Activos LDA for the management of 50 hotels with around 6,200 rooms. All are under construction and many are ready to open. Across the continent, the north-south divide on hotel development continues. In 2011, the number of pipeline rooms in the five countries of North Africa was about 25 per cent higher than that in sub-Saharan Africa. Today, it is less than half.Trevor Ward explained: "There are two reasons why development activity in North Africa is now somewhat subdued. Firstly, the markets there are more mature and have already seen much development, so there are fewer opportunities for new hotels. Secondly, there is the political turmoil – in Libya, which has seen a 40% drop in the pipeline, and also Egypt, parts of which are experiencing drastic reductions in the number of tourists."
Hospitality Market Snapshot: Oil Economies in Africa - Accra, Lagos and Luanda
This article highlights the impact of the current oil prices on the hospitality sectors in oil economies in Africa, with a focus on Accra, Lagos and Luanda.
Horwath HTL South Africa Market Report
Often referred to as South Africa's 'new gold', the South African travel and tourism sector has grown exponentially over the past two decades. The sector is estimated to have directly contributed approximately ZAR117.8 billion to the country's economy and directly supported an estimated 705 500 jobs in 2015. However, following the political and economic events that unfolded at the end of 2015, travel and tourism in South Africa is anticipated to experience a difficult year ahead.
Trivago Hotel Price Index North Africa Trend Hospitality - December 2015
This month the hotel rates of major cities and regions of the North African countries show little change. If Morocco and Egypt see their hotel rates increase by 4% and 2% compared to last month, accuses Tunisia for its 6% decrease including - 11% in Hammamet and Nabeul in the region.
Africa tourism set for sustained growth
The hotel and tourism industry in Africa is beginning a period of sustained growth, according to the sector's leading experts gathered at the Africa Hotel Investment Forum in Addis Ababa (http://www.Africa- Conference.com).The conference heard that inward international flights were recovering after being hit by the ebola outbreak. And the hotel sector reported significant expansion, as well as increased visitor numbers, boosted by demand from African business.Now in its fifth year, AHIF (30 September to 1 October 2015) brought together 500-plus leading international hotel investors, local operators, ministers, government officials and industry experts from around 40 countries.The immediate good news came from ForwardKeys, which monitors future travel patterns by analysing 14 million reservation transactions each day. Its analysis showed there was an increase of 6.4% in international arrivals in September in Sub-Saharan Africa. The upturn marked a turning point after the ebola outbreak, which had wiped out four years of strong growth.
Casablanca - Market Snapshot, 2015
Casablanca is located in the western part of Morocco, on the shore of the Atlantic Ocean, and has the largest population of the country with approximately 3.9 million inhabitants. 46.0% of Morocco's labour force is based in the Greater Casablanca area which is the beating heart of the Moroccan economy, with 60.0% of the country's total trade, 48.0% of investments and 30.0% of the Moroccan banking network. Moreover, with its art deco architecture, its numerous historical monuments including the church of the Sacred-Heart and the Hassan II Mosque as well as the second largest shopping centre in Africa (Morocco Mall) qualify Casablanca as a destination with great potential for both leisure and business.
Hospitality Outlook South Africa: 2015-2019
Every day, PricewaterhouseCoopers (PwC) plays a significant supporting role in hospitality businesses across the world. With our local knowledge of culture, laws and business needs, we help clients make the most of changing market scenarios.
Spotlight on Morocco: Marrakech's Luxury Hotel Market
Marrakech is a city that shows significant potential for tourism: the number of airport passengers and hotel overnights grew considerably year-on-year from 2004 to 2008, and rebounded in 2010 after the global slowdown caused falls in visitation. This demand for the city came from all market segments, in particular leisure and MICE visitation.
RevPAR growth picking up across South Africa | STR Global Reports
South Africa saw revenue per available room (RevPAR) increase by 13.6 percent for the first two months of this year, reaching ZAR542.07, according to the latest results from STR Global, the leading provider of market data to the hotel industry, tracking more than 40,400 rooms across the country.
Selman Marrakech: Not only for hot-blooded Arabian horses
The hotel construction boom in Dubai or Shanghai is fascinating. But even more exciting is what is currently happening in Marrakech. In this traditional holiday destination 19 new hotels are under current construction and development. Among those luxury Selman Marrakech Resort with just 56 rooms and suites (TOPHOTELPROJECTSNr. 12924) and scheduled to open in May stands out. The design by French architect Jacques Garcia has been influenced by some rather unusual guests: Arab thoroughbred horses. 16 of those hot-blooded horses – all of them privately owned – are housed in the resort's stables. This constitutes a novelty in hotel business.
Oversupply Impacts South Africa Hotel Performance
Hosting the FIFA World Cup in June and July last year gave South Africa the opportunity to show the world its outstanding natural beauty and hospitality. Many new hotels were opened to cope with the spectators, country delegations, media, etc., and a year later the influence of this overbuilding is impacting hotel performance, according to data from STR Global, the leading provider of market data to the world's hotel industry.