Hotels Outlook: 2019-2023

9th Annual edition: Future resilience

This Outlook covers hotels in South Africa, Nigeria, Mauritius, Kenya and Tanzania. For the first time this year, we are also analysing the accommodation market in Namibia.

While the hotel and tourism markets in each of the countries in our report are all displaying signs of continued growth over the forecast period, they continue to be affected by both local and global factors.

With changes in consumer behaviour, possible changes in government regulations, and changes in distribution channels, it is important that all stakeholders continue to work together to ensure that they derive the maximum benefit.

 

Mauritius overview:

A record number of almost 1.4 million people visited Mauritius in 2018 (up 4.3% on 2017). European countries continue to be the top feeder to Mauritius with 59% of arrivals in 2018. We expect tourist arrivals to continue to expand, but at a much slower rate, averaging 2.4% compounded annually to 1.6 million in 2023.

Average room revenue (EUR781.1) rose 12.1% in 2018, the third consecutive year of double-digit growth, driven mainly by a significant rise in ADR. 

2019 is forecasted to be a flat year in room revenue and occupancy rate; however, hotel room revenue in Mauritius is expected to grow at a 5.7% compound​ ​annual rate to 2023. An expected increase in room capacity and less aggressive​ growth in ADR should have a positive impact on guest nights, if supported by an increase​ in airline capacity and routes.

Hotels Outlook 2019-2023 | PwC Mauritius

Credits to Lux Islands Resorts

Hospitality Outlook 2019-2023 - PwC Mauritius

Olivier Rey
Hospitality Industry Leader, PwC Mauritius


"2018 has been a record year in arrivals and revenue. However, 2019 will be a challenging year for the industry and we forecast a flat trend in room revenue and occupancy rates. Some bold measures have been announced in terms of sustainability and promotion. The country needs to act fast and remain committed on these to remain attractive as a destination."

 

Download the latestHotels outlook: 2019-2023

 

 

 

PwC Mauritius - Hotels Outlook 2019-2023 - Future Resilience
Hotels Outlook 2019-2023

Where are visitors coming from?

Tourist arrivals rose 4.3% in 2018, down from the 5.2% rise in 2017 and the double-digit gains of 2015 and 2016. In fact, 2018 marked the slowest increase since 2013. Nevertheless, a record 1.4 million people visited Mauritius in 2018. KLM and Air Mauritius were among the airlines that added capacity, a key factor contributing to growth in tourist arrivals in 2018.

European countries remain top feeders to Mauritius as a destination, accounting for 59% of total arrivals in 2018. Czech Republic (+35.8%) and Netherlands (+23.7%) showed marked growth, probably linked to additional airline capacity.

Africa accounted for 22.3% of arrivals, while the Americas (+4.5%) saw a slighty increase. Middle East, Asia and Asia-Pacific remained steady.

A call for transformation and a diversification of the Mauritian hospitality industry

There is a strong sentiment in the market that the sector is in need of transformation and a diversification away from the ‘sea, sand, sun’ model. The government has proposed several measures to address this, including:

  • Sustainability initiatives;
  • Upskilling of the workforce;
  • Liberalising air access; and
  • A revised promotional strategy. 

However, this will require joint efforts and commitment from all stakeholders to ensure the appropriate positioning of the country.

PwC Mauritius - Hotels Outlook 2019-2023
PwC's Hotels Outlook 2019-2023

Credits to Attitude Hospitality Ltd (AHL)

One year later, security and data protection; burning challenges for hotels

One year ago, hotels were in the spotlight on privacy and security enforcement, and the General Data Protection Regulations (GDPR) and the Data Protection Act required a pragmatic approach to data privacy. The industry has been working hard to be compliant but there is still a long way to go.

Discover more about GDPR and how we can help you.here

Contact us

Olivier Rey

Partner, PwC Mauritius

Tel: +230 404 5145

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