Tan­za­nia - Dar es Salaam

Tourism Tattler - - BUSINESS & FINANCE - For de­tailed anal­y­sis visit http://hvi.hvs.com/mar­ket/africa/Tan­za­nia_-_Dar_es_Salaam

Land­locked Uganda has an­nounced it will build a ma­jor pipe­line to ex­port its oil through Tan­za­nia. This is seen as a ma­jor source of con­fi­dence in Tan­za­nia's sta­bil­ity and safety pro­file. From this ma­jor in­fra­struc­ture in­vest­ment Tan­za­nia can gen­er­ate more FDI and cap­i­talise on the ben­e­fits of a sub­sidised route for its own oil. Dar es Salaam saw a 12% in­crease in room sup­ply in 2015, un­sur­pris­ingly oc­cu­pancy fell sig­nif­i­cantly. The 2015 elec­tions will also have af­fected demand.

How­ever, pos­i­tively there was a sub­stan­tial in­crease in ADR in lo­cal cur­rency, push­ing RevPAR up al­most 7%. A 20% fall in value of the Shilling against the US$ re­sults in a fall in value in the HVI, al­though it should be noted in lo­cal cur­rency terms there was a no­tice­able in­crease in value. Any wors­en­ing of the se­cu­rity sit­u­a­tion and ac­ces­si­bil­ity are ma­jor threats for the fu­ture of Dar es Salaam ho­tel in­dus­try. Yet, cor­po­rate trav­el­ers and overnight tourists wait­ing to fly to more touris­tic des­ti­na­tions are com­ing in and in­ter­na­tional brands start en­ter­ing the mar­ket. Al­though the ad­di­tional sup­ply will im­pact the oc­cu­pancy level, the av­er­age rate will be boosted by a strong in­fla­tion and the in­tro­duc­tion of four-star branded ho­tels in the city. The val­ues are ex­pected to grow by 4.1% in 2016, af­ter three years of bad per­for­mance ow­ing to the cur­rency de­val­u­a­tion against the US dol­lar.

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