Ghana - Ac­cra

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

The con­cen­tra­tion of Ghana's in­ter­na­tional tourist ar­rivals still re­volves be­tween the na­tion's cap­i­tal city Ac­cra, and the min­ing and agri­cul­ture re­gional des­ti­na­tions. How­ever, there is grow­ing demand for ho­tels in Ghana's sec­ond and third tier mar­kets, with many play­ers tak­ing note of the mas­sive po­ten­tial.

Stake­hold­ers such as ho­tel op­er­a­tors, in­vestors, de­vel­op­ers and the gov­ern­ment sec­tors are closely fol­low­ing the new in­vest­ments ‘hot spots' of Ghana. Ho­tel chains such as Hil­ton, Mo­even­pick Ho­tels & Re­sorts, IBIS Styles, In­ter­Con­ti­nen­tal Ho­tels Group, Marriott In­ter­na­tional, Golden Tulip, as well as Ghana's do­mes­tic ho­tel groups such as Fi­esta Hos­pi­tal­ity Group and African Re­gent have in­di­cated their in­ten­tions of strength­en­ing the pres­ence of their econ­omy to mid-scale brands in the mar­ket.

Over­all, Ac­cra's tourism in­dus­try can ex­pect strong long-term po­ten­tial, bol­stered by ris­ing demand for in­ter­na­tional, do­mes­tic and re­gional travel.

Fu­ture ad­di­tions to the cur­rent sup­ply of ho­tels will con­tinue to ex­ert some pressure on val­ues. With the re­cent launch of the Kempin­ski Ac­cra and the Ibis Styles prop­er­ties val­ues have fallen slightly in US$ terms, al­though at a slower rate than pre­vi­ous years.

Due to a sub­stan­tial amount of sup­ply com­ing into the mar­ket, the level of oc­cu­pancy dropped by 2 points in 2016 and the av­er­age rate ex­pe­ri­enced slow growth be­low in­fla­tion­ary levels. How­ever, the open­ing of branded ho­tels will help in­crease the av­er­age rate. Poor cur­rency per­for­mance leads to a 3.4% drop in val­ues, down to US$218,000 which is the weak­est year out of the past five years.

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