Reports

Ideas That Generate Results

The RNCOS report, "Opportunities in Sub-Saharan Tourism Industry”, is a comprehensive work on the status of tourism industry in the Sub-Saharan African region. It discusses the present scenario and future prospects of the industry with foci on its different aspects, including foreign tourism, domestic tourism, expenditure by foreign tourists, expenditure by domestic tourists, accommodation facilities, transportation facilities, hospitality sector, tourism contribution to GDP, government support and major attractions in the region. 

The report evaluates 13 countries of the Sub-Saharan Africa, which are performing well in the tourism sector. The countries have been ranked according to their respective tourist arrivals for the year 2006. The countries include South Africa, Zimbabwe, Kenya, Swaziland, Senegal, Mauritius, Namibia, Zambia, Ghana, Tanzania, Nigeria, Mozambique and Uganda.

The forecast given in this report is not based on a complex economic model, but is intended as a rough guide to the direction in which the industry is likely to move. This forecast is based on a correlation between past market growth and growth of base drivers, such as growing Sub-Saharan Africa tourism, GDP growth, tourism contribution to employment, infrastructure development competitive structure and government rules and regulations.

Key Findings

  - The international tourist arrival in the Sub-Saharan Africa has shown a growth of 11.1% in the year 2006 compared to 2005. This growth was the second highest globally.
  - South African government is spending huge sum of money on the airport modernization. The government is going to spend Rand 18 Million more on the construction part (terminal building) in the year 2007 compared to 2006.
  - Tourist arrival in Zimbabwe had shown a negative growth of 15.9% in the year 2004-2005.However, the industry rebounded and reported a positive growth of 41.1% in the year 2006 compared to year 2005.
  - In international tourism receipts, Zimbabwe has shown a negative growth of around 49% in the year 2004-2005. However, in the year 2003-2004, it registered a massive 217.5% hike.
  - In the year 2005, out of total tourists visited Swaziland, 74% came via road. Out of this, tourists travelled with self-drives/cars accounted for 53%.
  - In Uganda, air is leaving road behind as the most preferred mode of travel. The CAGR growth in tourist arrival by road was 11.77% and that by air was 14.80% for the period spanning from 2001 to 2005.
  - Senegal has shown a positive growth of 15.3% in the year 2004-2005. However, this growth shown by the Senegal was smaller than the previous year (2003-2004) change of 34.7%.
  - Zambia government is providing support to the tourism sector by giving out incentives to the hotel industry, tax rebate to the investors to invest in rural enterprises, not taking visa fees from the tour operators, among other measures. 
  - Investment in tourism sector of Zambia was at all time high in the year 2006 in the last three years and the major part of the investment (75%) was diverted to the accommodation sector.

Key Issues & Facts Analysed 

  - What is the performance of global tourism industry in terms of inbound tourists for the period 2004-2006?
  - What is the performance of international tourism receipt by region during 2005-2006?
  - What is the position of the Sub-Saharan tourism industry with respect to the world tourism industry in 2006?
  - What are the investment opportunities in Ghana in sectors like rail, road, air, water and accommodation? 
  - Why conference tourism in South Africa is growing?
  - Which factors are driving the Sub-Saharan African tourism industry?
  - Which factors are capping the growth of the Sub-Saharan Africa tourism industry?
  - What are the opportunities and future trends of the tourism industry in Sub-Saharan Africa?
  - Who are the major players in airline and hotel industry in the region?

Key Players Analysed

The key players section analyses the different players of aviation and hotel sector operating in the market and gives their business description and key financial information. Airlines section gives an overview of various airlines, like South African Airways, Air Mauritius and Kenya Airways. Hotels section discusses various hotels, like Cape Grace Hotels, Holiday Inn, Royal Swazi Spa Valley Resort, Le Méridien President, Hilton Mauritius Resort & Spa etc.

Research Methodology Used

Information Sources
The information has been sourced from books, newspapers, trade journals, and white papers, industry portals, government agencies, trade associations, monitoring industry news and developments, and through access to more than 3000 paid databases.

Analysis Method
The analysis methods include ratio analysis, historical trend analysis, linear regression analysis using software tools, judgmental forecasting and cause and effect analysis.