Tourism is one of the important sector of business generating revenue and jobs for Africa. Africa has become one of the likable tourist destination in the world.

• Definition / Scope
• Market Overview
• Market Risks
• Top Market Opportunities
• Market Trends
• Industry Challenges
• Technology Trends
• Pricing Trends
• Regulatory Trends
• Other Key Market Trends
• Market Size and Forecast
• Market Outlook
• Technology Roadmap
• Competitive Landscape
• Competitive Factors
• Key Market Players
• Strategic Conclusion
• References
• Appendix

Definition / Scope

Travel and tourism is one of the important industry for Africa as it provides revenues and jobs to the people of the continent. Africa is growing consistently over the years in this sector. Tourist from across the world visit different countries of Africa. According to the World Travel and Tourism Council, Africa contributes 8.1% of the total GDP.

There are about 20 million people are directly or indirectly associated to the tourism industry. Sub Saharan African countries are growing more rapidly than the North African countries. Egypt tops the list in providing more jobs to the people followed by Ethiopia and Nigeria.

Market Overview

Africa tourism industry is the fastest growing industry in the world. Construction of new hotels and expansion of the existing hotels are driving the growth of the industry. The traffic of the international visitors is increasing year-on-year. Countries are executing more campaigns in North America and Europe to attract more people in the continent.

Billions of dollars are invested from countries like India, China, USA and Europe to acquire market share in the tourism business and develop the market for sustainability.

Demand for small, mid-size, budget and luxury hotels are always high for tourists visiting the continent. However there has been concern from the countries like Kenya based on the security issues of the tourist because of economic instability, but the situation is improving.

Market Risks

• Global slowdown- The global economy is facing slowdown over the years due to which the spending by tourists is decreasing in the African continent.
• Under developed countries- There are many countries that are under-developed and the scope of improvement is quite slow.
• Terrorism- Terrorism in some countries in high, due to which the tourists are not interested to visit.
• Political violence- Violence has led to the improper investment in the tourism industry.
• Epidemic- African countries suffers epidemic frequently.
• Low domestic investment- Domestic players invests in low proportion in comparison international companies.
• Asia as competition- Asian countries are growing more rapidly in the tourism industry as compared with Africa.

Top Market Opportunities

• Marketing and Promotion- Tourism board are conducting marketing activities like road-shows in different parts of the world for more tourist’s attraction towards the continent.
• Price competitive- Visiting Africa is price competitive as compared with the European nations.
• Expansion of hotels and resorts- There has been a rapid increase in the number of small, mid and luxury hotels and resorts in the continent supported by investment from the foreign companies.
• Commercial hub- People are preferring countries like Nigeria and South Africa for commercial meetings and events associated with business.
• Market potential- Tourism business in African continent consists of huge potential for revenue generation and jobs for the people.

Market Trends

• Income of the locals
• Economic stability
• Improvement in infrastructure
• Investment
• Expansion of hotels
• Exhibitions
• Improved connectivity
• Industry development
• Reduced language barrier
• Taxation- The government impose additional tourism tax to the companies as well as tourists reducing the profit and increasing the cost of the tourists.
• Reduced government expenditure- Diluted budget for the tourism industry is a major concern for the rapid development in the coming years.
• Low domestic participation- Africa has seen low visit ratio from the people in the continent.
• Competition- Asian countries are growing more rapidly and the investment is increasing.
• Epidemic & Natural calamity- The continent suffers from epidemic due to which the traffic of tourists gets reduced.
• Security- Security of the tourist is the major issue. Theft and robbery are the problems faced by visitors in the country.

Industry Challenges

• Difference between domestic and international players- There is always a challenge of investment from the domestic players due to which they lose the market share in the tourism.
• Tourism objective is different for different countries in the continent- Every country holds different tourism objective due to which the focus on the growth of African continent gets scattered.
• Global slowdown- Decade of slowdown leading to decrease in the tourist participation.
• Fear of terrorism.
• Lack of economic support.
• Poverty and unskilled labor are a major challenge.
• Low penetration of technology.
• Lack of basic facilities like hospitals and recreation.
• Poor government support.
• Lack of infrastructure.

Technology Trends

The hospitality industry is reaping the benefits by the introduction of technology in travel, food, hotels and tourism. Technology have connected more tourists across the globe. It has reduced the cost of travel as compared with the traditional way of travelling in Africa. 

Jovago.com uses an online platform for hotel booking at a discounted rate. Hotel and resorts have provided websites to book tickets via internet across the world.

Flight tickets can be booked at any time and place connecting to different parts of Africa. Mobile associated applications are built to support the travellers and inform about famous places in different countries. Social media has helped to share ideas and recommendations for famous food and destinations in Africa.

Pricing Trends

The cost of travel depends on the preference of the traveler. There are different options available like low budget, mid and luxury facilities for the travelers. Countries like Mauritius are expensive.

Flight cost in Africa is high as compared to the Middle East and Asian countries. Tourism tax is an added cost to the traveler. Currency fluctuation in African region is an added cost to the industry and the travelers. Transportation is expensive from different parts of the world to any country in Africa and also within the countries of the continent.

Regulatory Trends

• Tax- Government is imposing additional tourism tax to the industry.
• Low allocation of funds- The government is providing low funds for the development of the industry.
• Visa- New rules imposed in the visa have impacted the number of visitors in the countries.
• Tourism board- Lack of focus from the tourism board moving in the direction of Africa tourism growth.
• FDI- Different government are bringing investment in the tourism industry by FDI route for further development of hotels and resorts.
• Infrastructure- The government is shifting the focus in the development of infrastructure to support tourism.
• Technology- Supporting tech start-ups in Africa for further development in the tourism industry by integrating internet with different services in the hospitality industry.

Other Key Market Trends

• Exhibitions in the continent is also boosting travel industry because it is bringing more tourists in the country.
• Sports Event- Different sports events are conducted in the country for the people boosting the travel industry. Events in sports leads to the increase in the number of travels.
• Commercial destination- Countries like Nigeria and South Africa are becoming favourite place for commercial visits. Africa is gaining momentum from Middle East countries for business visits.
• Historical destination- Countries like Egypt is famous for its historical heritage and the demand for inbound travellers is increasing year-on-year.
• Technology set-up- Increase in the start-up companies in the continent has increased the movement of people from different parts of the countries.

Market Size and Forecast

International tourist declined by 3% in Africa reaching to 53 million in 2015. North Africa tourism was impacted by 8% and Sub-Sahara Africa by 1%. According to the forecast by UNWTO, Africa growth in the tourism sector is going to be growing up to 2030.

By 2020, it is forecasted to reach 1.4 billion tourist visitors and 1.8 billion by 2030 and the trend is positive from the other regions of the world. Morocco tops the list with 10 million visitors entering the country in a year. South Africa is the second largest country with the 9.5 million visitors entering the country. Nigeria is the upcoming country for tourism.

Market Outlook

• Europeans and Chinese visit the country.
• Development in the policies associated with the tourism industry.
• Global economy stability.
• Availability of hotels and resorts to the tourists.
• Availability of public services.
• Stability in the crimes.
• Education to the locals.

Technology Roadmap

Analytics is the future for the growth of tourism. Predictive analysis for the traffic of the tourist demand and season throughout the year. GPS system for the tracking of the tourists. Mobile based application for money transfer and booking in the resorts and hotels as well booking of transport vehicle. Improvement in the telecommunication industry is needed for more connectivity and associated industry.

Competitive Landscape

• Service is the most important factor for the competition.
• Hospitality by the hotels and resorts are the drivers for the tourist’s visits.
• Workforce of the African continent is young so availability of work-force is ample in the country.
• Low budget to luxurious facilities are provided by the companies to attract tourist preferences.
• Promotion and marketing activities are done for tourist’s attraction.
• By 2020, appropriate infrastructure would be available to manage the tourist population.
• Availability of famous landscape and natural resources are available.
• Technology is the new support for the travel and tourism industry making the tourist easy accessibility to different parts of the country.

Competitive Factors

• Low entry barriers
• Government support for investment
• Less competition
• Growth in the commercial segment
• Ample natural resources
• Improving unorganized sector
• High participation of the local people
• Technology improvement
• Improvement in the security of the travellers
• High demand of Europe and Asia

Key Market Players

• Baraza resort & spa- Tanzania
• LUX* Belle Mare- Mauritius
• Rhino Resort Hotel- Senegal
• Oyster Box- South Africa
• Constance Le Prince Maurice- Mauritius
• Hotel Dar Zitoune- Morocco
• Four Seasons Resort- Seychelles
• MAIA Luxury Resort & Spa- Seychelles
• Cape Grace- South Africa
• Kolabeach Resort- Kenya

Strategic Conclusion

Africa has been considered as the industrial hub of the world in the coming decades and so the travel and tourism is going to be the most prominent industry in the continent.

However the government should come together and work towards the goal of making Africa as a whole tourist attraction. Proper investment and rapid expansion would be the next biggest challenge. By 2030, Africa is going to have the highest number of visitors across the globe.

References

• https://www.tripadvisor.in/TravelersChoice-Hotels-cTop-g6 
• http://allafrica.com/stories/201603072340.html%20 
• http://allafrica.com/stories/201603072340.html
• http://africanbusinessmagazine.com/uncategorised/africa-leads-global-tourism-growth/ 
• http://www.jamaicaobserver.com/business/Africa-s-tourism-numbers-decline-by-3–to-53m-in-2015_49048%20 
• http://www.jamaicaobserver.com/business/Africa-s-tourism-numbers-decline-by-3–to-53m-in-2015_49048
•  http://www.africacradle.com/2015/01/30/africas-most-visited-countries/2/ 
• http://disrupt-africa.com/2015/11/tech-startups-boosting-african-tourism-sector/%20 http://disrupt-africa.com/2015/11/tech-startups-boosting-african-tourism-sector/