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Hotel chains looking to Africa for growth
Some global hotel chains are ready to spend hundreds of millions of dollars in Africa to meet expected growing demand from international tourists and the continent’s own fast-growing middle class, according to Reuters.
Africa was the only region in the world to show growth in tourism in 2009, according to the World Tourism Organization.
Last year, international arrivals rose by 6 percent to 49 million, slower than Asia or the Americas but double the growth rate for Europe.
“Industry executives say that as consumer spending stalls in developed markets, more multinationals are betting Africa's growth will eventually translate into meaningful revenue — if they can negotiate the considerable regulatory and infrastructure challenges of doing business there,” Reuters says.
Chains looking to capitalize on the growing urbanization of the area include:
InterContinental Hotel Group, Accor, Starwood and Rezidor Hotel Group, the group that operates the Radisson Blu chain.
"In the last 48 months we've added 33 hotels — some already opened and others under development — to the African continent," Andrew McLachlan, Rezidor's vice-president for business development Africa and Indian Ocean islands, told Reuters in an interview.
"If we don't have any curve balls, we should open another eight hotels in 12 months across five countries," he added.
"When looking for growth it's only natural to look at Africa, (which is) not as badly affected by a slowdown. There is potential for higher growth for hotels here than in traditional markets," said Martin Jansen van Vuuren, a director at consultancy Grant Thornton Strategic Solutions.
By David Wilkening
David
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