Togo - Lome

Tourism Tattler - - BUSINESS & FINANCE - For de­tailed anal­y­sis visit­ket/africa/To­go_-_Lome

327,000 vis­i­tors from far and wide en­joyed the won­ders of Lome in 2013. With tourism con­tribut­ing 3.1% to the GDP of the coun­try, the tourism mar­ket re­mains un­der­de­vel­oped. Most of the ma­jor in­fra­struc­tures are in­ad­e­quate and the roads' net­work is de­fi­cient in the cap­i­tal.

Togo has a lim­ited and un­even ho­tel sup­ply. In 2012, rated ho­tels rep­re­sented 900 rooms and 6 units in Lome. Ac­cor Ho­tels and Carl­son Rezi­dor are the only in­ter­na­tional brands op­er­at­ing in the city. In ad­di­tion to the in­ter­na­tional chains, Group Onomo and Grupo Prefaco opened 2 ho­tels in Lome in 2014. Most of the ho­tels in Togo are state owned, al­though it's now chang­ing as the gov­ern­ment wants to sell them to pri­vate in­vestors. The gov­ern­ment does not in­vest in any re­fur­bish­ment or ren­o­va­tions, and does not have any hos­pi­tal­ity ex­per­tise, leav­ing the prop­er­ties out­dated and un­der-per­form­ing. The on-go­ing process of de­cen­tral­iza­tion should en­cour­age pri­vate in­vestors and boost the pre­mium travel ac­com­mo­da­tion sup­ply in the coun­try.

How­ever, be­hind this layer of neg­a­tiv­ity, Lome has a real po­ten­tial to grow its tourism ac­tiv­ity. The level of oc­cu­pancy had been sta­ble since 2011, show­ing a re­bound in 2015. ADR and REVPAR have been sig­nif­i­cantly up reach­ing a peak of +18.2% in REVPAR last year, boosted by the newly opened in­ter­na­tional ho­tels at­tract­ing demand from in­ter­na­tional trav­el­ers. Ho­tel val­ues have thus ex­pe­ri­enced pos­i­tive and en­cour­ag­ing trends, with dou­ble-digit growth over the two last years.

In­vestors are in­creas­ingly con­sid­er­ing Togo for in­vest­ment. The in­flow of For­eign Di­rect In­vest­ment in­creased by 61% in 2013 and 49% in 2014. De­spite over­all pos­i­tive trends, Lome still needs to ad­dress key chal­lenges to be able to de­velop. In ad­di­tion to the poor in­fra­struc­ture, ho­tels in Lome tend to be over­priced, com­pared to the prod­uct of­fer­ing and air­line fares are dis­sua­sive for trav­el­ers.

Al­though Lome faces some chal­lenges in grow­ing the tourism mar­ket, it of­fers eco­nomic and po­lit­i­cal sta­bil­ity. The city is ex­pected to see pos­i­tive trends in 2016. The open­ing of the Radis­son Blu will trig­ger in­duced demand and help in catch­ing the tourists and in­vestors' in­ter­est. Thanks to the low amount of sup­ply, mid-size con­fer­ences such as AHIF (June 2016) can have a sig­nif­i­cant im­pact on the oc­cu­pancy level. Ho­tels' val­ues are ex­pected to rise by 8.2% in 2016, reach­ing a peak value of US$125,000.

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