Ward: West Africa’s hotel industry H2'24 outlook optimistic
The Managing Director of W Hospitality Group, Trevor Ward, says he is broadly optimistic about the outlook of the hotel industry in West Africa. However, he notes Africa’s image as a destination for investment isn’t being helped by the “coup belt”, where hotel demand has collapsed in cities such as Niamey. He joins CNBC Africa for more on the region's growth prospects.
Mon, 15 Jul 2024 14:30:13 GMT
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AI Generated Summary
- Nigeria's domestic demand sustains hotel industry amidst economic fluctuations and political uncertainty.
- Funding challenges and political instability in 'coup belt' countries hinder new hotel developments in West Africa.
- Sustainability of domestic demand and potential growth raise questions for the region's hotel industry amidst ongoing challenges.
The West African hotel industry is showing signs of resilience and recovery post-pandemic, with cities like Lagos and Abuja witnessing encouraging occupancy rates, even surpassing pre-pandemic numbers. Despite challenges such as inflation and political uncertainty, Nigeria continues to attract domestic demand for hotels, sustaining the industry amidst economic fluctuations. However, the outlook for new hotel developments in the region remains uncertain due to funding difficulties and political instability in countries like Niger, Mali, Burkina Faso, and Guinea, creating a 'coup belt' that deters investment. While domestic demand remains a key driver for markets like Lagos and Abuja, other cities like Abidjan and Accra heavily rely on foreign visitors for their hotel occupancy. The sustainability of domestic demand and the potential for growth in the West African hotel industry raise questions amid ongoing challenges. Experts suggest that while sustaining current demand is plausible, substantial growth in the near future may be uncertain. Nevertheless, with limited new supply entering the market, hotel owners in the region can expect profitability in the next 18 months, provided they navigate challenges such as inflation and price rises effectively.
