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A Ticket to Recovery: Reinventing Africa’s Tourism Industry

tourism diversification in africa

  • COVID-19 triggered an unprecedented crisis in Africa’s tourism industry.
  • Still, a growing middle class and young population bode well for travel businesses.
  • Tapping domestic tourism demand will be key to rejuvenating the sector.

By Olivier Monnier

Months into the COVID-19 pandemic in 2020, Kenya’s normally manicured beaches were carpeted three-feet deep in parts with thick layers of seaweed.

The Indian Ocean had seemingly taken advantage of the shuttered hotels and absence of tourists to reclaim the white sands in normally bustling Diani, Watamu, Malindi, and other favoured places along Kenya’s coastline.

The story was similar across much of Africa: pandemic-induced lockdowns and grounded flights devastated the continent’s tourism industry, forcing many operators to the brink of bankruptcy—or to cease operations.

During the height of the pandemic in West Africa, the Azalaï Hotel Group took the difficult decision to close completely. The Group has since reopened most of its hotels in the region, but more than half its rooms remain empty.

"I think 2021 is going to be another tough year for the sector," said Mossadeck Bally, founder and Chief Executive Officer of the hotel group. "The vaccination rollout will give travellers some confidence, but I don’t think people will travel much this year. The recovery will really start in 2022."

Unprecedented Crisis

Over the past 20 years, tourism has become vital to African economies. In 2019, the industry accounted for about seven percent of Africa’s GDP and contributed $169 billion to its economy—about the size of Côte d’Ivoire’s and Kenya’s combined GDP.

tourism diversification in africa

“The impact has been very strong,” said Bally, who refused a salary himself for more than a year. “Our industry was devastated because all of a sudden, we’ve been asked to just stop operating. We are a front-line sector so we are suffering first before it reaches the other industries.”

Aside from its Grand Hotel in Bamako, Mali’s capital, Azalai’s locations have resumed operations but with fewer staff, pay cuts of up to 40 percent and a hiring freeze, Bally said. Occupancy rates range from five percent in Guinea Bissau to 40 percent in Côte d’Ivoire, still well below normal levels.

Dependence on Foreign Travelers

Africa’s tourism sector has persevered largely without the financial relief provided by governments in wealthier, more developed regions, with the continent’s smaller businesses in the sector most affected.

The crisis has also exposed Africa’s dependence on foreign travelers. This is especially true for countries in Eastern and Southern Africa, which have developed significant leisure and safari-oriented facilities that appeal to European, American, Asian, and other visitors.

Cheetahs pass a herd of wildebeest in Maasai Mara National Reserve, Kenya.

In December 2020, an IFC and Dalberg Advisors survey of selected tourism companies in Tanzania, Uganda, and Zambia revealed that the companies would lose two thirds of their revenue from international tourism receipts in the 2020-2021 season.

Some experts believe that Africa might take longer to recover than other regions due in part to a lack of domestic and intraregional demand and the sector’s weaker supply chain.

According to the WTTC, domestic tourism accounted for 55 percent of travel and tourism spending in Africa in 2019, below the contribution of local tourism in North America (83 percent), Europe (64 percent) and Asia-Pacific (74 percent). Domestic tourism accounted for 73 percent of the total global tourism spending in 2017 .

“Much of the world has had the advantage of relying on captive domestic and regional audiences. But in Africa, domestic tourism has been overlooked for a long time,” said Hermione Nevill, an IFC Senior Tourism Specialist in Johannesburg. “The sector needs to be oriented towards more diversified markets so that there is greater resilience in future.”

But all is not lost for Africa’s hard-pressed tourism sector—and some countries have already acted to entice domestic tourists.

A tourist enjoying his time in Kisite Mpunguti Marine Reserve, Kenya.

Reinventing the Industry

While Africa’s domestic tourism industry is growing—by 2050, Nigeria will have the world’s third largest population, for example—it remains largely untapped and burdened by challenges.

Connectivity is an issue. Traveling around the continent can be complicated and expensive, in part because countries restrict their markets to protect their state-owned air carriers. Although 44 African countries adopted the Yamoussoukro decision to liberalize the aviation market in 1999, implementation has fallen short.

There’s also a need for more and better infrastructure beyond capital cities, which are now generally well served with hotels and other amenities, said Olivier Baric, Africa Aviation Director at Egis, a French multinational company involved in infrastructure and transport.

Tourism experts believe domestic tourists could be enticed if operators invest in the economy and mid-scale market, develop smaller, more authentic, and greener resorts, and introduce more products aimed at middle-class African families and millennials, while marketing more directly to these groups.

Finally, there is the question—and problem—of ownership. The long-term strength and sustainability of Africa’s tourism industry will in part depend on the number of Africans building businesses and supporting and encouraging others on the continent to do so.

Despite the many challenges ahead, Azalai’s Bally says he sees the crisis as an opportunity—but one that can only be grasped through hard work and with fresh thinking:

“I am not worried, but I am perfectly aware that we have to reinvent ourselves to deal with the new situation,” he added. “Those who can reinvent themselves will survive.”

An aerial view of Zaina Lodge, a luxury safari hotel in northern Ghana. Photo: Courtesy of Zaina Lodge.

South Africa, which welcomed 10 million international tourists in 2019, made local tourism in 2020 a focus of its recovery plan . Rwanda, with advisory support from IFC, is developing a recovery strategy that includes developing local and regional markets. Meanwhile in Kenya, entry fees to all game parks and reserves have been cut for one year to attract more local tourists.

“Where we've seen some resilience is when there's domestic travel,” Wayne Godwin, senior vice-president of JLL Hotels & Hospitality Group for Sub-Saharan Africa, said at a virtual IFC event on the future of the tourism sector in Africa and the Middle-East.

Young Travellers and Free Trade

Africa’s growing middle class, its soaring population of young travellers hungry for adventure, and the recently launched African Continental Free Trade Area (AfCFTA), the world’s largest free trade area by the number of participating countries, are among the pillars seen supporting the future growth of domestic and regional tourism in the continent.

“The free-trade agreement is an absolute game changer for travel,” Godwin said. “If 97 percent of commodities and goods are tariff-free, that's going to do a lot for regional trade. And when there's regional trade, travel will follow. It just will happen.”

With its abundant wildlife and varied landscapes, Kenya is a leader in Africa in promoting local tourism.

The country’s beaches have been busy again following COVID’s initial shock, though another month-long lockdown announced for parts of the country in April 2021 frayed nerves among the country’s tourism operators.

Even before COVID-19, Kenya enjoyed a 55 percent rise in bed night occupancies by domestic tourists between 2014 to 2018, according to official data . The growth has been credited to digital campaigns, growing disposable income among Kenyans, and efforts to promote affordable alternatives to five-star resorts.

“International bookings are a higher value in terms of revenue but the domestic market is more resilient,” said Muthuri Kinyamu, cofounder of Kenyan tour operator Turnup.Travel . “Clients take multiple trips with you, and they come back.”

Kinyamu’s company has held up well during the pandemic, even adding staff. It benefited from a strong digital presence, developed new packages and partnered with low-cost airline Jambojet, a unit of Kenya Airways, to create content to reassure travelers and boost domestic bookings, Kinyamu said.

An airplane making its landing in the town of Lodwar, the capital of Turkana County, Kenya.

“Of course, our growth trajectory has been hampered by COVID-19 but when we look at our 2020 numbers, the revenues have evened out,” Kinyamu said. “With the restrictions, we had to adapt but we never had to lay off our staff as our business has diverse sources of incomes.”

Across the continent in West Africa, Zaina Lodge , a luxury safari hotel in Ghana, enjoyed its second-best month ever in December 2020—thanks to the power of domestic tourism.

“We established ourselves as a local brand from day one,” said company cofounder Andy Murphy. “The long-term growth in the continent is going to have to come from domestic tourism. If you're a business in tourism in Africa, you need to seriously think about how you build a domestic client base to match or even exceed your international base,” he said.

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World Bank Approves $68 Million to Support Diversification of Tourism in The Gambia

WASHINGTON, June 13 , 2022 –  The World Bank’s Board of Executive Directors approved on June 9, a $68 million grant from the International Development Association (IDA)* to support the diversification and climate resilience of the tourism sector in The Gambia.

The Tourism Diversification and Resilience in The Gambia project aims to assist the country by strengthening the institutional and policy framework, improve capabilities and access to funds for tourism related Micro Small Medium Enterprises (MSME) suppliers, and enhance the attractiveness of selected existing but underdeveloped destinations. The project will also strengthen the sustainability of the coastal areas.

“The Gambia’s tourism sector is a key contributor to GDP and employment generation, but it is prone to both, endogenous and exogenous risks that limit the sector’s potential for inclusive and resilient growth ,” said Feyi Boroffice, World Bank Resident Representative for The Gambia.

The five-year project will take a targeted approach to integrate gender and climate actions across components and leverage significant global knowledge and experience in tourism recovery, particularly related to building back better in post COVID-19 situations.

The project goal would be achieved through the following main interventions:

1.     Policy framework and MSME participation which aims to address selected/identified key bottlenecks in the tourism ecosystem in The Gambia, to ensure the sector realizes its potential as a source of sustainable and inclusive growth. The activities under this will focus on: (a) strengthening capacity for collecting relevant tourism data to inform policy decision-making; (b) enhancing marketing to promote recovery and diversification beyond traditional source markets and segments; and (c) promoting the diversification of the destination and products beyond ‘sun and sea’. (d) promoting tourism MSMEs’ sustainable integration into value chains with established end markets

2.     Infrastructure support for the diversification and resilience of the tourism sector.  This component will focus on strengthening and upgrading infrastructure to better preserve existing assets by being more resilient to the impacts of hazards and climate change as well as enhance the attractiveness of tourism sites and promote economic development.

“ The project takes a holistic approach to tourism development by focusing on tourism infrastructure, enablers, attractors and promoters to support the tourism ecosystem, provide opportunities for women and build climate resilience,” said Rafael Pardo, Financial Sector Specialist and Project Task Team Leader

* The World Bank’s International Development Association (IDA), established in 1960, helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives. IDA is one of the largest sources of assistance for the world’s 74 poorest countries, 39 of which are in Africa. Resources from IDA bring positive change to the 1.3 billion people who live in IDA countries. Since 1960, IDA has provided $458 billion to 114 countries. Annual commitments have averaged about $29 billion over the last three years (FY19-FY21), with about 70 percent going to Africa.

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Biodiversity Conservation and Tourism Sustainability in Africa

  • First Online: 18 April 2023

Cite this chapter

tourism diversification in africa

  • Bukola Omotomilola Adetola 4  

Part of the book series: Sustainable Development and Biodiversity ((SDEB,volume 32))

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The long-term viability of the tourism industry and the preservation of its principal attraction (nature) are inextricably linked. Biodiversity conservation is a fundamental obligation of all economic sectors and a unique paradigm in the tourist sector that makes tourism more biodiversity-friendly. Assets of biodiversity are powerful forces shaping tourism’s essence, including the human drive to see and experience the pristine ecological settings. Moreover, Africa boasts of rich diversity, and in this continent, biodiversity endowment offers opportunities for economic, social, and ecological development. Whether scuba diving on coral reefs or watching wildlife, most tourists enjoy the natural beauty (animals and vegetation) that surrounds them. However, the high rates of tourist expansion must be balanced against the problems that come with it, such as massive volumes of traffic, trash, a huge area of land and resource consumption associated with travel, and impacts on fragile ecosystems among others. The tourism sector appears to place a long-term emphasis on environmental conservation and protection because of the importance and uniqueness of the environmental quality and biodiversity for tourism, and they encourage and support sustainable tourism operations. Responsible tourism benefits indigenous communities and residents by improving their standard of living while also preserving culture and biodiversity.

Ecotourism, a sustainable tourism strategy, is an interface of conservation concerns and tourism interest, a synergy that jointly preserves the environment’s quality while protecting nature and promoting tourism. Consequently, Africa’s response to the Sustainable Development Goals (SDGs) will be ineffective unless its biodiversity is conserved and used sustainably.

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    Africa is poised for real growth. Africa has experienced unprecedented economic growth over the last five years. Real GDP rose 4.9% each year from 2000 to 2008, faster than the 3% global average. Democracy is on the rise, macroeconomic conditions have improved and microeconomic reform is underway across the region. 4.

  8. Tourism in Africa

    Governments in Africa are showing increasing interest in tourism as a source of growth and diversification. Recent work indicates that tourism in Africa can contribute effectively to economic development. The tourism industry throughout Africa often operates below international competitive standards, but several products already meet international standards of excellence.

  9. Tourism in Africa

    Governments in Africa are showing increasing interest in tourism as a source of growth and diversification. Recent work indicates that tourism in Africa can contribute effectively to economic development. The tourism industry throughout Africa often operates below international competitive standards, but several products already meet international standards of excellence.

  10. African Destinations Meet to Plan Growth and Sustainable Future for Tourism

    African Destinations Meet to Plan Growth and Sustainable Future for Tourism. Africa; 9 Jun 2020 Recovery and resilience were the central themes as the members of the World Tourism Organization's Regional Commission for Africa (CAF) met for the 63rd time today.Reflecting the extraordinary circumstances, the meeting was held virtually, bringing together Ministers of Tourism from across the ...

  11. Africa's tourism potential

    By 2030, consumer spending on tourism, hospitality, and recreation in Africa is projected to reach about $261.77 billion, $137.87 billion more than in 2015. From 1998 to 2015, service exports ...

  12. PDF Trends, drivers, opportunities, and strategies

    Africa' ii Table of Contents Executive Summary 1 1. Background facts and trends 2 2. Importance of the sector to Africa's growth 6 3. Building upon the key drivers of tourism growth in Africa 10

  13. Africa

    The 67TH Meeting of the UN Tourism Regional Commission for Africa and 2nd UN Tourism Regional Conference on Brand Africa under the theme: "Promoting Africa to unlock tourism investments and the sector's growth potential" Newsletter. More newsletter. Africa 2024. Africa News Issue 23. Africa 2024. Africa News Issue 22.

  14. Tanzania Economic Update: How to Transform Tourism into a More

    Tanzania is a globally recognized destination for nature-based tourism, a competitive market segment in eastern and southern Africa. Beyond attracting tourists, the country's landscapes and seascapes produce a wide range of ecosystem services, including carbon sequestration and biodiversity co-benefits that are not efficiently priced and often generate little or no financial return.

  15. Tourism as a pathway to livelihood diversification: Evidence from

    Sustainable Livelihood Diversification for Tourism is a catalyst for sustainable development. ... Institutional arrangements for conservation, development and tourism in eastern and Southern Africa, Springer Netherlands (2015), pp. 81-100, 10.1007/978-94-017-9529-6_5. View in Scopus Google Scholar. Stone and Nyaupane, 2017.

  16. Does Tourism Reduce Poverty in Sub-Saharan African Countries?

    The importance of tourism toward the realization of economic diversification and structural transformation in Africa was conceptualized in the report by highlighting the sector's contribution to foreign exchange constraint easing, job creation, and its linkage with other sectors of the economy (p. 3).

  17. Reviewing Africa in the global tourism economy

    The following are key underpinnings of the continent's emergence in the global tourism economy. Africa offers abundant diversity; access from growing source markets (Europe, USA and Asia) to African destinations is improving through hubs such as Johannesburg, Nairobi, Addis Ababa and Lagos; there is a major consumer shift from pre-paid packages ...

  18. Sustainability

    The complex nature of tourism, its strong inter-sectoral relationships and regional dimension challenge innovation. The advent of smart specialisation, which focuses on regional diversification across sectors, offers considerable and hitherto largely unrealized potential for developing innovative tourism policies within this new agenda. This paper addresses the understudied concept of tourism ...

  19. Contribution of Tourism to Economic Diversification and ...

    The meeting was organized by the Division for Africa, Least Developed Countries and Special Programmes, and brought together senior experts, policy makers and private sector representatives to discuss the role of tourism in economic diversification and poverty reduction in poor and vulnerable developing countries. Participants identified economic channels through which tourism could drive ...

  20. World Bank Approves $68 Million to Support Diversification of Tourism

    WASHINGTON, June 13, 2022 - The World Bank's Board of Executive Directors approved on June 9, a $68 million grant from the International Development Association (IDA)* to support the diversification and climate resilience of the tourism sector in The Gambia.. The Tourism Diversification and Resilience in The Gambia project aims to assist the country by strengthening the institutional and ...

  21. Biodiversity Conservation and Tourism Sustainability in Africa

    Abstract. The long-term viability of the tourism industry and the preservation of its principal attraction (nature) are inextricably linked. Biodiversity conservation is a fundamental obligation of all economic sectors and a unique paradigm in the tourist sector that makes tourism more biodiversity-friendly.

  22. Modeling the determinants of tourism diversification: An empirical

    This paper aims to use an augmented tourism demand model to examine the determinants of tourism diversification by using the data from 46 tourism markets and seven tourism activities in Australia from 1987 to 2021. The tourism markets in Australia have been further divided into sub-regions, and each region has been analyzed.

  23. Assessing the Economic Impacts of Tourism Markets and Activities

    According to the results in Table 5, statistically significant results for tourism diversification were obtained for Model 1, Model 2, Model 4, and Model 7. Considering the calculation method of the tourism diversification index, a negative coefficient was expected for δ 5 in all models, which means more diversification and more GDP. However ...