tourism - Afrikan Heroes

Tourism Grows 4% in 2021 but Remains Far Below Pre-Pandemic Levels

January 18, 2022

UNWTO reports a 4% rise in international tourist arrivals in 2021; however, 2021 was another challenging year: arrivals still 72% down on pre-pandemic levels; recovery needs stronger coordination and increased vaccination rates.

Global tourism experienced a 4% upturn in 2021, compared to 2020 (415 million versus 400 million). However, international tourist arrivals (overnight visitors) were still 72% below the pre-pandemic year of 2019, according to preliminary estimates by UNWTO. This follows on from 2020, the worst year on record for tourism, when international arrivals decreased by 73%.

The first 2022 issue of the UNWTO World Tourism Barometer indicates that rising rates of vaccination, combined with easing of travel restrictions due to increased cross-border coordination and protocols, have all helped release pent up demand. International tourism rebounded moderately during the second half of 2021, with international arrivals down 62% in both the third and fourth quarters compared to pre-pandemic levels. According to limited data, international arrivals in December were 65% below 2019 levels. The full impact of the Omicron variant and surge in COVID-19 cases is yet to be seen.

Slow and uneven recovery

The pace of recovery remains slow and uneven across world regions due to varying degrees of mobility restrictions, vaccination rates and traveler confidence. Europe and the Americas recorded the strongest results in 2021 compared to 2020 (+19% and +17% respectively), but still both 63% below pre-pandemic levels.

By subregion, the Caribbean saw the best performance (+63% above 2020, though 37% below 2019), with some destinations coming close to, or exceeding pre-pandemic levels. Southern Mediterranean Europe (+57%) and Central America (+54%) also enjoyed a significant rebound but remain 54% and 56% down on 2019 levels respectively. North America (+17%) and Central Eastern Europe (+18%) also climbed above 2020 levels.

Meanwhile, Africa saw a 12% increase in arrivals in 2021 compared to 2020, though this is still 74% below 2019. In the Middle East arrivals declined 24% compared to 2020 and 79% over 2019. In Asia and the Pacific arrivals were still 65% below 2020 levels and 94% when compared to pre-pandemic values as many destinations remained closed to non-essential travel.

Increased tourism spending

The economic contribution of tourism in 2021 (measured in tourism direct gross domestic product) is estimated at US$1.9 trillion, above the US$1.6 trillion in 2020, but still well below the pre-pandemic value of US$ 3.5 trillion. Export revenues from international tourism could exceed US$700 billion in 2021, a small improvement over 2020 due to higher spending per trip, but less than half the US$1.7 trillion recorded in 2019.

Average receipts per arrival are estimated to reach US$1,500 in 2021, up from US$1,300 in 2020. This is due to large pent-up savings and longer lengths of stay, as well as higher transport and accommodation prices. France and Belgium reported comparatively smaller declines in tourism expenditure with -37% and -28%, respectively over 2019. Saudi Arabia (-27%) and Qatar (-2%) also posted somewhat better results in 2021.

Outlook for 2022

According to the latest UNWTO Panel of Experts, most tourism professionals (61%) see better prospects for 2022. While 58% expect a rebound in 2022, mostly during the third quarter, an42% vs point to a potential rebound only in 2023. A majority of experts (64%) now expect international arrivals to return to 2019 levels only in 2024 or later, up from 45% in the September survey.

The UNWTO Confidence Index shows a slight decline in January-April 2022. A rapid and more widespread vaccination roll-out, followed by a major lifting of travel restrictions, and more coordination and clearer information on travel protocols, are the main factors identified by experts for the effective recovery of international tourism. UNWTO scenarios indicate that international tourist arrivals could grow by 30% to 78% as compared to 2021, However, this is still 50% to 63% below pre-pandemic levels.

The recent rise in COVID-19 cases and the Omicron variant are set to disrupt the recovery and affect confidence through early 2022 as some countries reintroduce travel bans and restrictions for certain markets. At the same time, the vaccination roll-out remains uneven and many destinations still have their borders completely closed, mostly in Asia and the Pacific. A challenging economic environment could put additional pressure on the effective recovery of international tourism, with the surge in oil prices, increase in inflation, potential rise in interest rates, high debt volumes and the continued disruption in supply chains. However, the ongoing tourism recovery in many markets, mostly in Europe and the Americas, coupled with the widespread vaccination rollout and a major coordinated lifting of travel restrictions, could help to restore consumer confidence and accelerate the recovery of international tourism in 2022.

While international tourism bounces back, domestic tourism continues to drive recovery of the sector in an increasing number of destinations, particularly those with large domestic markets. According to experts, domestic tourism and travel close to home, as well as open-air activities, nature-based products and rural tourism are among the major travel trends that will continue shaping tourism in 2022.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

How Covid-19 Robbed Egypt of $9 Billion in Tourism Revenues

January 7, 2021

Minister of Tourism and Antiquities Khaled Al-Anani

One of the countries reeling from heavy losses as a result of the Covid-19 pandemic is Egypt. New reports say that Egypt’s tourism revenues fell to about $4 billion in 2020, down from $13 billion in 2019, amid the global pandemic that severely damaged the sector worldwide. This realization has forced the country to refocus its tourism industry from visitor numbers to remaining a safe destination despite the coronavirus outbreak according to the Minister of Tourism and Antiquities Khaled Al-Anani . Al-Anani said: “We witnessed a great year in 2019 in terms of numbers and revenues, and also the first two months in 2020 were 8 percent higher in terms of numbers and revenues, with 2.4 million tourists visiting the country at that time.

“The goal now is not to measure the number of tourists, but to say that Egypt is a safe tourist destination even amid the coronavirus crisis.”

Egypt closed its hotels in March when the outbreak began, but reopened them after about two months with about 25 percent capacity and, later, 50 percent.

“We are working to build a tourist reputation and encourage tourists to visit after the crisis ends. The number of hotels that have obtained licenses to operate according to the new regulations after the pandemic is about 700 out of a total of 1,200,” Al-Anani said.

Egypt reopened its airports to international commercial flights at the beginning of July.

“The foreign tourism occupancy rates in our hotels currently average between 10 and 15 percent of the 2019 numbers,” the tourism minister said.

He said that the Egyptian Federation of Tourism Chambers is expected to sign a contract with a foreign company within a week to work out a tourism strategy that includes all destinations and markets. The plan is due to be completed by May.

The largest number of tourists Egypt recorded was in 2010 — before the January 2011 uprising that toppled Hosni Mubarak — when the country had 14.7 million visitors and revenues reached $12.5 billion. Al-Anani said that Egypt will announce two archaeological discoveries during January, as well as a contract to operate a new museum due to open in the second half of 2021.

Kelechi Deca

We Will Turn Tourism into an Engine of Economic Growth — Memunatu Pratt

October 4, 2019

Hon. Memunatu Pratt, Sierra Leone’s Minister of Tourism and Cultural Affairs is working diligently to actualize President Julius Maada Bio’s administration vision of promoting tourism as a catalyst for diversification of the economy. In this interview, she speaks on the efforts of the Ministry to transform Sierra Leone into a destination of choice for tourists. Excerpts:

WHAT is your strategic plan to transform Sierra Leone’s tourism industry?

Tourism is one of the central pillars of the present administration’s economic diversification drive. The strategic plan is to harness the country’s tourism potential in order to transform Sierra Leone into a resilient economy.

The New Direction Master Plan of the Government has identified certain critical areas for the transformation and diversification process. They include the review and upgrade of all tourism-related laws, regulations and policies to ensure ongoing consistency with global best practices; the rehabilitation of historical and cultural sites geared towards attracting domestic and international tourists and business travelers; the enhancement of the capacity of actors involved in the management of tourism; and the development of tourist resorts and more extensive supporting infrastructure.

Since taking up office, the Ministry has been working round the clock to actualize the master plan. The Ministry and the National Tourist Board have engaged in several activities to convey Sierra Leone’s fitness and readiness as a top destination for tourism. These efforts will continue in collaboration with other Ministries, Departments and Agencies (MDAs) and partners.

Hon. Memunatu Pratt, Sierra Leone’s Minister of Tourism and Cultural Affairs

Being only six hours away from Europe, eight hours from the US and three hours from Lagos, West Africa’s largest city, Sierra Leone has a splendid combination of beautiful white sandy beaches, vibrant tropical forests teeming with exotic wildlife, breath-taking mountains, tropical rain forest, and excellent climate. With the influx of international brands such as Hilton and Radisson Blu which are investing in our tourism sector, coupled with the consistent surge in the number of tourists visiting Sierra Leone annually since 2016, tourism has gained momentum and the country is back on the world map as a tourist destination. In fact, since 2016, Sierra Leone has been rated among the world’s fastest-growing travel destinations.

The National Tourism Policy and the National Ecotourism Policy, which seek to attract up to 20,000 international and 30,000 domestic ecotourism visits by 2025 have provided blueprints to guide the sustainable development of the sector. To continue building on this momentum, the Ministry of Tourism and Cultural Affairs in collaboration with the Ministry of Transport and Aviation, Immigration recently launched the visa-on-arrival policy for Sierra Leone.

To continue the transformation of the country into a competitive tourism destination, a series of regulatory frameworks have been introduced. They include the National Tourism Island Development Policy; Review of the Cultural Policy; the introduction of the Entertainment Policy, which will pave the way for the establishment of the Entertainment Commission; the Tourism Wildlife Development Policy; and the review of the Tourism Development Act 1990, which is in progress.

We are quite aware that there are endless possibilities in the tourism sector, given the diverse ecology of Sierra Leone. The Government through my Ministry will continue embarking on activities that would enhance the environment for tourism operators such as providing reduced visa costs for target markets and reviewing the prices of air tickets for travelling to the country. We are also supporting the formation of the Tourism Federation and other stakeholder associations to enhance public-private partnerships (PPPs) whilst capitalizing on digital and technological advances globally to improve the government’s revenue generation drive and showcase the potential of the sector digitally.

How is the Ministry creating awareness about the country’s tourist attractions to make it a destination of choice for tourists?

Stories of our experience as a country in the 90s and the recent Ebola scourge have sort of tainted Sierra Leone, especially on the internet. But these are challenges we have not only overcome but also learnt lessons from as a nation, and we are on a positive trajectory. The entire country is stronger, safer and healthier than it has ever been.

In recent times, we have been more strategic in telling the world about our positive trajectory and creating awareness about the country’s tourism attractions. My Ministry and its agencies in collaboration with other stakeholders have been engaging the international media such as the BBC, Aljazeera, Eturbu news among others. We have also been organizing press conferences, trade fairs, media engagements and promotional tours. We have equally been hosting globally renowned tourism /travel personalities such as Dr Jane Goodall (DBE, anthropologist and UN Messenger of Peace), the world’s foremost expert on chimpanzees, and Jessica Nabongo who is on the quest to become the first black woman to travel to all countries. Familiarization visits are also being organized for travel writers, journalists, tour operators from key source markets to have a first-hand experience of the diverse offerings of the country.

To enhance domestic tourism, the Ministry, in collaboration with other MDAs, organized the Agro-tourism festival in Bonthe and the National Cultural Festival in Kabala. The Ministry has hosted and facilitated several entertainment shows, festivals and concerts across the country. It spearheaded the first National Entertainment Conference and the Establishment of the National Entertainment Foundation which is geared towards developing a vibrant tourism and cultural sector.

As part of our rebranding efforts, we will continue to collaborate with tour operators, travel agencies, travel journalists, Incomers, television channels, airlines hotels and other tourism-related companies along the entire tourism sector ecosystem. So far, these interventions have contributed to the increase in business transactions for local tour operators, hotels, airline operators, local sea transportation as well as cultural and historical sites. The Ministry has supported the collaboration with well- experienced tourism representatives in the UK (Kamageo), Germany (Hana Kebler), France (Olivier Thierry) and the USA (Corner Stone).

The thrust of our message is that Sierra Leone is a peaceful, stable, democratic country and an investment-friendly tourism destination. Our greatest asset is our warm, friendly and hospitable people. Some of the world’s endangered species of chimpanzee, baboon, monkeys, jungle elephant, rare species of birds, butterflies, pygmy hippos and a variety of antelopes and buffalo families can be found in our tropical forests.

Government is making concerted efforts to develop facilities along all these beaches to improve the tourism market of Sierra Leone.

Apart from the beaches, the country offers visitors its historical heritage and is a site for cultural tourism as many African-Americans trace their roots back to Sierra Leone including well-known celebrities like Denzel Washington, Idris Elba and many more.

With all these endowments, the present administration is not only scaling up investments in the labour force but providing the requisite infrastructure to encourage investments in the tourism industry.

How is Sierra Leone exploring cultural tourism which is an emerging and sustainable form of tourism?

Culture is one of the most profound concepts to have emerged in modern times. This is so because the boundaries of the social setting are identified by two significant concepts – society and culture. We view cultural tourism as a low hanging fruit and the most readily available component of our sustainable tourism development plan. The cultural/creative industries are readily available, cheap and easy to harmonize for us to harness the potential of our cultural heritage tourism to the fullest degree. We are right now creating the necessary framework and undertaking infrastructural development to make the sector viable and competitive in the promotion of cultural activities in the country. To this end, a new Cultural Village is being constructed at Mabala, Koya Region, and Western Area; a National Arts Gallery is to be built; the Cultural Policy will be upgraded into an Act and Policy for Arts, Culture and Entertainment is being developed.

We also intend to ratify and domesticate the UNESCO conventions. Other activities we are engaging in to boost cultural tourism include Community outreach and trainings for arts, culture, entertainment practitioners and stakeholders, organizing of Special Annual end-of-year Agro-Tourism and cultural festivals, holding of events and exhibitions at regional levels. We will continue to organize the Annual Mid-year National Cultural Festival and Exhibition dubbed “Sierra Leone Carnival/ Faces”; the conducting of research and documentation of Arts, Culture and entertainment resources and products. We will equally establish a Heritage Commission.

How is the Ministry utilising the country’s breath-taking natural landscape resources as a catalyst for economic development?

We have embarked on a range of activities to develop the natural landscape for the stimulation of job opportunities, income generation, investment, trade and skills training opportunities. This is being done through the opening up of coastal communities. The Ministry has prepared projects in partnership with the World Bank and other development partners to provide safe and reliable sea transportation to these communities to open them up for domestic and international tourism.

In the same vein, we will implement the Island Development and the Wildlife policies in strong partnership with the private sector. Plans are under way for a National Consultative Conference for all Paramount Chiefs to enlighten them on how they should re-assert their authorities as crucial stakeholders in the protection and preservation of cultural assets in the country. We are unrelenting in our efforts to preserve and conserve our environment.

What are the prospects of Sierra Leone’s tourism industry?

There are bright prospects for Sierra Leone’s tourism industry. With the priority government is giving to tourism, the country stands to benefit from the current favourable global tourism trend, as preparation is ongoing to improve on active networking in the African continental and sub-regional tourism markets. Outside the continent, the Western European market is also showing interest in Sierra Leone as a preferred destination. We will also tap the North American market as soon as airline services to the region are established.

With tourism still in its infancy in Sierra Leone, it will be a long-term advantage for the international tourist industry to invest in the sector. In adopting planned and regulation development approach, Sierra Leone, by and large, is still in a position to ensure environmental conservation while expanding its tourism sector with a view to enhancing the quality of its tourist sites.

Kelechi Deca

How Mauritius is Fast Becoming a Big Business Player in Africa

September 11, 2019

Mention Mauritius and most South Africans will think of its pristine beaches and luxury resorts, but this small country is becoming a big business player not only in Africa but on a global scale.

Mauritius may just be an island — its annual tourist influx of 1.4 million outnumbers its own population of around 1.3 million — but this hasn’t stopped it, over the past three decades, from growing into a giant on the business front.

Many ‘Firsts’

As far as the continent goes, it’s already racked up a number of African “firsts” in terms of international business achievements. These include Economic Freedom of the World (2017, Fraser Institute), Forbes Survey of Best Countries for Business (2017) and the Global Competitiveness Index (2017–2018).

It also secured first place in Africa and 25th position overall out of 190 countries on the World Bank’s Ease of Doing Business Report, receiving recognition in terms of its political, social and economic stability, efficient and effective regulatory framework, state-of-the-art infrastructure, transparent and innovative legal framework and its highly competitive tax system.

With a government focused on promoting foreign and domestic investment, it has enabled free repatriation of profits, no withholding tax on dividends, interest and royalties, no capital gains tax, and no estate duty, inheritance tax or gift tax. Plus it has 44 tax treaties with countries across the globe and another 32 in various stages of negotiation and ratification.

Together with its low tax rates, its fiscal regime has seen it being listed in 2017 on the Organisation for Economic Co-operation and Development (OECD) “white list” in terms of transparency and being a fully compliant tax jurisdiction in terms of best practice international standards. It was, indeed, one of only three such top-rated jurisdictions in the world.

It is welcoming foreigners with open arms and — as a country in Africa — it’s certainly giving South Africa a run for its money.

Read also: Inside Mauritius Where A Majority of South Africans Are Migrating To And Their Reasons

A Financial Hub

Along with 4% growth in its economy, its reputation is also growing for being the best financial hub and base for businesses coming to Africa.

Investors from places such as France, India, and the UK — not to mention South Africa itself — are all seeing it as a safe place to set up shop. It’s why we, as The Business Exchange (TBE) with our own home base in South Africa, have set up our latest coworking space here, to meet the growing demand for office space on the island. It’s a destination we believe is out-investing South Africa

A Business Safe Haven

A safe investment climate, efficient financial infrastructure and political stability are always going to be highly conducive towards attracting and conducting business. Little over an hour longer in flying time than the time it takes to travel between Cape Town and Johannesburg, the third smallest country in Africa is, therefore, becoming an attractive destination in which to live, work, play and stay… quite possibly forever.

Its private and government institutions are strong. Good schooling (in English with French as a second language), state-of-the-art healthcare facilities, and a low crime rate are starting to see a number of South Africans turning their heads north in its direction — families as well as companies.

As a property ownership destination, it’s already been proving its worth for a number of years now, initially for holiday and second homes but, today, increasingly for residency, relocation and retirement. A huge attraction for investors and in particular those looking to attain passive rental income, has been its property development schemes for foreign non-citizen investment. An investment of $500 000 or more in a PDS will also grant an investor permanent residence status.

And, as we ourselves have found as The Business Exchange, there’s a great deal that’s attractive to invest in from a business perspective as well. Not only is there an ideal opportunity for us to service the rapidly growing need for professional office space on the island, but we’ve also decided to use the country as the perfect base from which to launch our own growth into the rest of Africa. Legislation around setting up companies and ownership structures in Mauritius are quite straightforward and relatively simple to administer with the right partners and advisors onboard.

It may well have been a place of beaches to start with, a few decades ago — and, believe me, those pristine sands are still just as beautiful — but it’s business opportunities are now among its biggest attractions. And as South Africa continues to reflect uncertainty, I’ve no doubt that Mauritius’s positive offerings will continue to grow even brighter.

David Seinker is the CEO of The Business Place, an office and co-working space with a number of locations throughout Johannesburg — and now in Mauritius.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world

Afrikan Heroes

Kelechi Deca

Kelechi Deca

Many ‘Firsts’

Read also: Inside Mauritius Where A Majority of South Africans Are Migrating To And Their Reasons

A Financial Hub

A Business Safe Haven

Charles Rapulu Udoh