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China-Africa Trade Information Service
info.afrindex.com
China-Africa Trade Information Service
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Tourism is one of the main drivers of economic growth and job creation in emerging economies around the world. Africa's unique history and natural wonders are increasingly favored by tourists and investors. In 2015, total foreign direct investment in the African continent was $54 billion, government development assistance totaled $51.04 billion, and African tourism generated $39.2 billion, bringing 9.1 million direct jobs.
In 2015, foreign direct investment to the African continent totaled $54 billion and official development assistance totaled $51.04 billion, while tourism generated $39.2 billion and created 9.1 million direct jobs within the sector. Clearly, the tourism industry has an increasingly important role in the global economy by contributing to GDP, service exports, and employment.
A recent World Bank study classified African countries into four performance categories:"pre-emergent," "potential," "emerging," and "consolidating" tourism destinations. The performance of countries was based on indicators such as the ease of doing business; the competitiveness in terms of tourism regulation, infrastructure, and resources; the tourism receipts per long-haul arrivals; the international arrival per head of population; and the forecast of growth in tourism arrivals.
The pre-emerging countries, such as Somalia and Sudan, have faced significant security and governance challenges as well as low government commitments to the tourism sector. The potential countries, such as Madagascar, Ethiopia, and Gabon, have shown relative interest and initiative in the sector, but are still facing governance challenges and market limitations. The emerging countries, such as Rwanda and the Seychelles, are prioritizing and scaling up tourism and relatively competitive. Finally, the consolidating countries, such as Morocco, South Africa, and Mauritius, are among the top performers with a relatively mature tourism sector.
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, as an example, has enthusiastically used the tourism industry as a development tool, hoping to increase the annual number of visitors received and to strengthen the country’s economic growth. Since the Moroccan government began strategically prioritizing tourism, the country has become the "new star of emerging markets among overseas property developers."
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. Namibia, Cape Verde, Botswana, and Tunisia all rank close to Kenya in the World Economic Forum's Travel and Tourism Competitiveness Index Ranking (2017), representing the breadth of growth potential across the continent.
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 $261.77 billion.
