SPECIAL REPORT : 2014 FORECAST
MIDDLE EAST AFRICA
QUICK OVERVIEW : Despite political unrest and economic turmoil , the hotel industry ’ s perspective is cautiously optimistic , even for hoteliers in the Middle East . According to HVS , many of the markets that lost ground during the Arab Spring rebounded in 2012 . Sub-Saharan Africa continues to show strong potential .
PERFORMANCE OUTLOOK : Hotel occupancy grew 5 % in 2012 , an upward trend that is expected to continue . Major brands are committed to intensive development . Hilton Worldwide and regional giant Rotana Hotel Management Co . each have pipelines of more than 10,000 rooms .
HOT AND COLD SPOTS : Historically , strong performers like Jordan , Qatar , Turkey , Saudi Arabia and the UAE won ’ t disappoint in 2014 , says Omer Kaddouri , executive vice president
Lounge at the new Emaar Residences at the Fairmont Makkah in Saudi Arabia
and COO , Rotana , Abu Dhabi . In Africa , relatively stable countries in Sub-Saharan Africa will continue to grow quickly . “ Countries with natural resources such as oil and gas and the environment for tourism are leading the way ,” says Tim Smith , managing director , HVS London . “ With this in mind , Nigeria , Ghana and Kenya will remain drivers for the continent as a whole . However , other destinations including Rwanda , Ethiopia and Mozambique are becoming increasingly important .”
Trevor Ward , principal , W Hospitality Group , Lagos , points to “ economic growth , stability , large population , fairly good air access and more than one major city in which to plant the flag ” as the key factors in determining hot markets in Africa . In more developed countries like Nigeria , aging existing stock presents little competition for the international flags that are entering the region , Smith says .
Unsurprisingly , less attractive markets are those in which there is a lot of political instability ( though Kaddouri points out Rotana has hotels in Syria and expects to see business there recover fairly rapidly when the conflict is over ). In countries such as Angola , there is interest in development , but corruption makes breaking ground on projects difficult .
STAR SECTORS : Cities such as Abu Dhabi , Dubai and Doha continue to attract ultra-luxury development , both from international giants like IHG and local and Asian regional brands including Shangri-La and Anantara ( whose first property in Qatar , Anantara Doha Island , will open in 2014 ). Throughout the region , the midscale market is heating up , especially in Africa , where a growing middle class is driving intraregional travel .
“ Hilton has announced its Garden Inn brand as one of its focus brands for Africa ,” Smith says . “ Regional hoteliers in the full-service segment such as Serena , Southern Sun and Protea continue to trade successfully .”
The combined pipeline for Africa of Accor , Hyatt , IHG , Carlson Rezidor and Starwood is 13,521 rooms , of which 8,149 ( 60 %) are in Sub-Saharan Africa .
OPPORTUNITIES AND PITFALLS : The headline is Africa . Openings in the region as diverse as Kempinski ’ s in Accra and the Park Inn by Radisson in Abeokuta , Nigeria , speak to that . However , hoteliers need to do their homework . “ The biggest mistake is bringing in inexperienced expatriate managers who don ’ t understand Africa and the Africans , and who are too impatient to learn ,” Ward says .
ONE- “ The last year has seen the
LINER hospitality industry in the Middle East and Africa registering positive growth despite several challenging economic and political factors .”
– OMER KADDOURI , ROTANA
28 HOTELS December 2013 www . hotelsmag . com