Political instability might have impacted the hospitality and tourism sector in Ethiopia but the diplomatic country of Africa stands resilient to the challenges set before her. Ghana’s Accra, being listed as one of the most expensive cities in Africa, is attracting more visitors than anticipated. Real estate development is booming while the city flourish as a vacation and business hub for many travelers. The 7th edition of the PwC Hotels Outlook: 2017 – 2021 report establish Ethiopia and Ghana as countries with a brighter outlook in the hotel industry – both countries are increasingly growing in the number of international hotel brands.
Ethiopia’s continuous involvement in hosting international diplomatic conferences, and having an airline which serves international routes is soaring the hospitality market. The growth is also backed with government efforts to expand the Addis Ababa Airport to serve close to 20 million passengers by end of next year. According to Pietro Calicchio, the Hospitality & Gaming Industry leader for PwC Southern Africa, the tourism sector will continue to see growth in Ethiopia as the number of international brands keep rising. He relates that the rise in international brands is a confirmation of trust within the sector.
He furthered to mention that the emerging markets are a sought after destination for foreign investors. Africa’s rising economic growth and increase in foreign visitors is driving the growth of the hotel industry. More to it, increasing middle class population is contributing to the growth as well. In addition, governments and policy makers are introducing a range of tax incentives and other incentive schemes to foreign investors to make the sector more attractive.
For the hotel industry in Ghana, projections from the World Travel and Tourism Council predicts a stable yearly growth aimed at 5.1 per cent each year over the next decade. Similar to Ethiopia’s strategy, Ghana is already working towards a third terminal at the Kotoka International Airport in Accra as the airport is gradually being over crowded. The expansion comes with an effort of the government to repair all roads leading to main tourist destinations. This means, more arrivals, and easy access to destinations and increases hotels in all major destinations.
The growth for both economies and other emerging economies generally arises from increase in foreign travelers and increase in foreign investors.