Luxury hospitality performance in Africa characterized by volatility [Construction Report]
Experts say that supply and demand for luxury hotels in Africa have both, indeed, been on the rise.
The past decade has been one of much progress for the countries that comprise the African continent and the hoteliers that operate there
The past decade has been one of much progress for the developing world.
The hospitality market is one that has remained strong for years and years in the usual thriving markets, which include the United States, Europe, and the Asia Pacific.
However, on the African continents there has not always been a steady flow of funds being allocated for project development. This, however, has recently come to change, although it is important to point out that many challenges remain.
Experts say that supply and demand for luxury hotels in Africa have both, indeed, been on the rise. In the past, stays by guests at luxury hotels in Africa were often made up of the very exclusive, very expensive sort that usually saw visitors undergoing some sort of elaborate safari-type experience.
It was routinely a safe assumption to guess that the majority of international visitors to Africa would spend more than a few days on an actual safari, traipsing through multiple countries in Africa as they went.
How Supply and Demand Have Changed
With many African currencies remaining much weaker than the Euro, the US dollar, or the British pound, the chance to visit Africa has for the most part been quite affordable.
As of late, however, there has been an influx of new development dollars to the African continent, and this flow has brought urban luxury hotels and operators there. The results are that many cities and countries in Africa now have a healthier mix or remote as well as urban luxury hotels for guests to pick from.
Supply and Demand in Africa
Experts say that demand for luxury hotel rooms as become much healthier in Africa, and as a result the continent has undergone a spike in supply of such luxurious accommodations.
It does, however, seem to be too early for industry watchers to truly determine if these changes are slated to sate the appetite for luxury products, or if demand is waning.
Overall, experts say that the developing nature of the luxury hospitality in market in Africa has created a bit of an erratic picture, one in which it is far too soon to tell if there is going to be steady demand being met by steady supply—a situation that can lead to sustained growth for the countries in Africa.
Egypt, experts say, saw a sharp decline in hospitality demand following the political unrest that swept the country in 2013. In Southern Africa, demand for hotels in those nations stayed more subdued, which has led to a more stable situation wherein growth has had the ability to stay relatively steady.
The competition for high-end tourists throughout the globe is fierce, and as such, any sort of unrest or terrorist threat can drive luxury guests away. The negative headline cycle that regularly plagues Africa is doing hoteliers there no favors. However, rebounding room demand does seem to indicate that overall growth for the continent will remain steady.
Let’s take a look at a few other projects currently underway in Africa:
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