rise in overall room revenue from 2018, higher then the projected increase.
compound annual rate rise in guest nights from 2018 to 2023.
compound annual rate rise in hotel room revenue from 2018 to 2023.
Overall room revenue in South Africa, Nigeria, Mauritius, Kenya and Tanzania rose 7.4% in 2018, up from the 1.9% increase in 2017, principally reflecting a 28 percentage point turnaround in Kenya, a 15.4 percentage point turnaround in Tanzania, as well as a 7.2 percentage point improvement in Nigeria. Mauritius continued to grow at double-digit rates in 2018 but room revenue growth in South Africa fell to only 0.5%.
Nigeria, Kenya and Mauritius had the fastest-growing markets with increases of 20.0%, 14.6%, and 11.7%, respectively, in 2018. Growth in Mauritius was due to a large increase in ADR that offset a drop in guest nights.
During the next five years we expect Nigeria to be the fastest-growing market with a projected 12.0% compound annual increase. A number of new hotels are scheduled to open in the next five years, which will accommodate further growth in guest nights, without putting upward pressure on ADR.
(Main picture: Montecasino - Image courtesy of Tsogo Sun)
Image courtesy of Tsogo Sun
Image courtesy of Southern Sun
Hotel room revenue for the five markets as a group will increase at a 5.8% compound annual rate to R50.6 billion in 2023 from R38.1 billion in 2018.
With Nigeria's growing affluence, we expect consumer tourism to become a more important sector. Adventure tourism is becoming more popular and the growing interest in experiences is allowing Nigeria to attract visitors interested in the local culture.
Partner, West Africa Technology Leader, PwC Nigeria
Tel: +234 1 271 1700