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.
people visited Mauritius in 2018 (up 4.3% on 2017)
Average room revenue rose 12.1% in 2018, driven mainly by a significant rise in ADR
Europe remains the main feeder to the Mauritian destination
Tourism industry contribution to GDP
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.
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.
Credits to Lux Islands Resorts
"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."
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.
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:
However, this will require joint efforts and commitment from all stakeholders to ensure the appropriate positioning of the country.
Credits to Attitude Hospitality Ltd (AHL)
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
Positioning for future growth: PwC’s team of hotel specialists provide an unbiased overview of how the hotel industry in South Africa, Nigeria, Mauritius, Kenya and Tanzania is expected to develop over the coming years.
Partner, PwC Mauritius
Tel: +230 404 5145