There are countless opportunities in Africa’s hospitality sector in emerging markets, and the industry is set to post faster growth in revenue than their counterparts in developed countries. This makes them integral to the expansion strategies of some of the world’s leading hotel developers.
So, there is an urgent need for foreign investment in this sector.
“The growth potential of Africa is high mainly because of the rapid economic growth in some economies, a growing middle class and an increase in visits from foreign visitors,” Pietro Calicchio, PwC Southern Africa’s hospitality and gaming Industry leader, said this week.
“The emerging markets are a sought after destination for foreign investors – it is in these markets where there is continued economic growth and a need for additional infrastructure. In addition, governments and policy makers are introducing a range of tax incentives and other incentive schemes to foreign investors,” Callichio explained.
However, as the pasture is not always green on the other side, PwC has highlighted a number of challenges that potential foreign investors were likely to face on their way to invest in markets such as South Africa, Nigeria, Mauritius, Kenya and Tanzania, to name only a few.
These challenges include a drop in oil prices and other commodities, social unrest, unstable electricity supply and the impact of one of the most severe droughts across the African continent, PwC said, acknowledging nevertheless that the potential for foreign investment in this sector in Africa has improved substantially over the past several years.
Pic: courtesy of Huffington Post