Tourism is one of the primary drivers of economic growth and job creation in emerging economies throughout the world.
Africa’s unique history and natural wonders are gaining attention amid the local and global increase in cultural, heritage, and development tourism.
The tourism and hospitality industry showed strong signs of recovery after the pandemic period.
There is great potential to increase tourism-related investment to the continent, particularly after the 15 member states of the Economic Community of West African States, often referred to as ECOWAS, introduced a visa policy allowing for free movement among its member states.
Continent-wide efforts to increase integration and free movement, such as the impending implementation of the African Continental Free Trade Area, will create a more stable business environment for investors and entrepreneurs to capitalise on the continent’s tourism potential.
The tourism industry offers many opportunities to invest in Africa’s rich local communities, generate economic activity, and create employment opportunities for women and young people.
By 2030, consumer spending in hospitality and recreation in Africa is projected to reach about US$261.77 billion. In order to capitalise on the tourism potential, policy and business leaders should work hand-in-hand to prioritise investments to accommodate entrepreneurial innovations to attract more travellers to their countries.
Policymakers should improve governance with a better-coordinated effort across agencies to simplify the regulation and remove the barriers to tourism development, attract investors, and promote tourist destinations.
The emerging countries, such as Rwanda and the Seychelles, are prioritising and scaling up tourism and are relatively competitive. Countries, such as Morocco, South Africa, and Mauritius, are among the top performers with a relatively mature tourism sector.
While motivations for travel may change periodically, the tourism industry has always been a major economic contributor of jobs and opportunity.
Tourism accounts for 10 percent of the world’s jobs and GDP, and generally provides high levels of employment for women and young people.
As Africa’s emerging economies begin to shift away from relying on commodities and agriculture and toward boosting their service industries, the tourism industry has become a major focus of national development strategies.
Morocco, South Africa, Egypt, and Kenya — as some of Africa’s most popular destinations based on number of arrivals and the value of tourism receipts — are tourism success stories with the countries earning billions of dollars each year.
Policymakers should also unlock the competitiveness and ease of doing business in the sector with the development of infrastructure, including for road, air, and water transport, as well as the simplification of visa requirements and administrative processes.
The private sector should develop and promote memorable touristic products with sustainable competitive advantages, and a quality that meets or exceeds the global standards.
Investors and entrepreneurs should ultimately be economic development agents, sourcing local goods and services and fostering inclusion of women and youth and environmental sustainability, while ensuring their profitability in a fast-growing sector.
Of course, to constitute a market, people must have disposable income to afford to travel, but as per capita disposable income increases people to travel more.
Initially, travel is domestic, then intra-regional and eventually, long-haul international.
Best estimates of all travel show that 80% is domestic and 20% is international.
Many countries, both developed and developing, have recognised the advantages that international tourism can contribute to their development efforts.
These advantages can be encapsulated in six areas: earning of foreign exchange, contribution to government revenues, creation of employment opportunities, generation of income, stimulus to inward investment and regional development.
Patson Chapeyama is a cutting edge business startup and Immigration Specialist. He is the Founder and Managing Director of Immicom Immigration and Business Solutions. Email : patson@immicom.co.za, www.immicom.co.za.
