HotelsMag September 2018 | Page 34

REGIONAL PROFILE

Onomo Kigali development , high capital investment , lack of access to adequate financing options , high construction costs and reliance on imports contribute to delays . Marriott is focusing on conversion and rebranding of existing hotels with local operators .

INFRASTRUCTURE CONCERNS Improved infrastructure is key . Mark Dunford , head of East Africa at JLL , says both countries rely on Kenya ’ s port in Mombasa for receipt of building materials , furnishings and the like . With bureaucracy , fees , legislation , delivery time and transport expense , “ it costs 15 % to 20 % more to develop in Rwanda ’ s capital , Kigali , versus Kenya ’ s capital , Nairobi ,” he says .

Rwanda ’ s strategy has been “ carefully orchestrated ,” says David Harper , head of property services , Hotel Partners Africa . He says investments in air connections and communications , along with promoting “ no corruption ” policies and greater wildlife protections for gorillas and chimps , have helped generate hotel demand .

Harper points to a need for lower-priced , limited-service hotels and forecasts growth in serviced apartments , with rising demand from NGOs and international businesspeople . Local brands such as Onomo Kigali are experiencing success with a growing boutique property market .

A boom in locally owned hotel development coincided with the Kigali Convention Center ’ s 2016 opening , leading to some periods of oversupply , says Dunford , due to fluctuating visitor numbers , a national airline with little long-haul reach , and the absence of substantial corporate hubs and mass tourism . An additional challenge is that the government has limited gorilla trekking to 80 to 100 people per day and doubled the cost to international visitors to US $ 1,500 . ( Uganda treks cost US $ 600 .)

Singita is expanding its East African safari circuit with its first foray into a mountain experience inclusive of gorilla trekking . Singita Kwitonda Lodge opens August 2019 at the edge of Volcanoes National Park .

The focus is on hiring and training staff , says Tom Fels , CEO hospitality . “ There is not a tremendous depth to the hospitality staffing market , and this is something we expect to shift dramatically as the destination becomes more established ,” he says .

Uganda is a “ sleeping giant ,” Harper says , citing improving airlift . “ Enhancing the ease of doing business whilst continuing work to reduce perceived corruption would enhance the likelihood of success in corporate hospitality .”

Jean Byamugisha , executive director of the Uganda Hotel Owners ’ Association , says 75 % of hotels are locally owned ; the country is using development incentives to attract international brands .

Other considerations , Dunford says , are “ volatile neighbors like the DRC and Burundi , and the bureaucracy of a government that ’ s had the same president for 37 years .” Yet he says things are changing as an internationally educated diaspora returns to East Africa with Westernized mindsets .

TOP FRANCHISE COMPANY BY PROJECTS : Marriott International 1

32 hotelsmag . com September 2018