When it comes to boosting the economy of African countries, hotel investors in Africa have a significant role to play. One of Africa’s most prominent business ventures is hotel investment, and this has contributed immensely towards growth and development in many sectors of the economy. A full-service renowned hotel provides luxury, comfort and the highest level of tailored services which include conducive accommodation, eatery, and some other amenities.
The tourism sector is a boosting the for most hotel investors in Africa, and a significant role is constructed majorly as tourist attraction sites and also used as a holiday resort for families and friends. As Africa continues to grow in influence in the world of business and sports, a need arose for several affordable and comfortable accommodation to cater to travelers who come from all over the world to Africa for business and leisure. Such a motive has attracted so many investors of businesses to invest in building hotels as a source of income and improvement in economic growth.
Hotel investors across Africa have contributed immeasurably to the economic growth and development in so many countries in Africa as this also offers opportunities for the government to generate revenues from different sources.
Nigeria which is believed to have the largest economy in Africa has an average increase in the value of about 5.5% for hotel services in the last six years when compared with offices which decreased by 1.4% annually. Ghana, on the other hand, has the fastest growth in commercial investment that has increased in hotel values at an average of 6.5% annually as compared to retail and offices with 7% annual decrease and 6.5% annual increase in values respectively. Hotel investment seems to be growing significantly in West Africa as the second most substantial market. In East Africa, Kenya has the most developed hotel investment market with an increase in hotel values of 5.7% over the last six years. Tanzania has recorded an average of 6.3% per annum increase in value and 11.5% in tourism and travel section. The priorities of today investors of hotels are to target the movement of people in an out of the country for business purposes. Therefore the scarcity of quality and highly sophisticated hotel rooms has given opportunities for hotel investors to construct more hotels that will offer full accommodation services and provide the necessary and suitable comfort for clients. Also, the presence of well-known and highly classy hotels will inspire some international investors to visit countries in search of investment opportunities.
Another big advantage of hotel investment is the employment opportunities it creates across Africa since working in a hotel requires very little. This helps to provide jobs and a source of livelihood to the people of the local. It is also pertinent to understand that hotel located in a place can add to the beauty of the environment and bring that location to the limelight.