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not invest in any refurbishment or renovations, and does not have any hospitality expertise, leaving the properties outdated and under-performing.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.