Luxury hotels are quickly becoming a favorite investment for Africa’s wealthy elite, with high-end properties across the continent attracting attention from affluent individuals and global investors seeking prestige and strong returns.
According to bloomberg, money from Gulf royals to billionaires, tech tycoons and top global hotel chains is flowing into a continent seen as one of the last under-penetrated tourism destinations.
A post-pandemic appetite for wellness travel, eco-friendly escapes and bucket-list experiences is also fueling the development of high-end resorts.
For some, funding hospitality projects offers an opportunity to flaunt trophy assets such as private islands and vineyards, and build the skylines of emerging cities — all while charging top dollar.
For Africa, harnessing these investments could prove transformational.
In supporting this boom and spotlighting rich cultures, interesting landscapes and wildlife, African governments can showcase a different and more dynamic side to tourism, creating much-needed jobs in a sector that accounts for about 10% of global GDP.
Many obstacles remain, though, not least the conflicts in many regions and concerns about crime — even for the adverturous. National policies can also deter travelers.
Countries need to improve visa processing and be less protectionist of their national airlines, according to JLL Africa CEO Wayne Godwin. Lower airport taxes would also go a long way to increase travel.
“Capital and investment will undoubtedly follow into infrastructure like hotels,” he said.
Still, the rush to develop should be carefully managed to avoid the kind of backlash recently seen in Europe. Over-tourism has triggered protests by locals fed up with congestion and increasing housing costs.
As a new high-end travel frontier, Africa likely has some way to go before that happens.
