Hospitality industry in Côte d'Ivoire

1. HOSPITALITY INDUSTRY OUTLOOK
2018: COTE D’IVOIRE (IVORY COAST)
www.mape.org.my 1
July 2018

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Presentation Outline
 Cote d’Ivoire At A Glance
 Hospitality Industry in CI: Vital Statistics
 Top 5 Investments in the sector
 Strengths & Weaknesses
 Investment Opportunities
 Recommendations

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Cote d’Ivoire At A Glance
 Top Performing Economy in French-speaking West Africa with 8.8% & 8.5% GDP growth in 2016 and
2017 respectively.
 Country area: 322,462 sq km
 Population (2018): 24.91 million (2% growth rate pa , 38.9% under 15 years old, 7.6% over 55)
 Administrative capital: Yamoussoukro (200,000 inhabitants)
 Economic capital: Abidjan (more than 6 million inhabitants)
 Official language: French
 Religion: Islam (40%), Christianity (35%)
 World’s largest producer of cocoa & cashew nuts, minor net exporter of crude oil (100m barrels)

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 There were 2.05 M tourist arrivals in 2017 with international tourists accounting for 40%
of the total arrival.
 In 2017, Tourism accounted for 4.8% of the country’s GDP and is expected to grow by
5.6% pa over the next 10 years
 Tourism revenue was estimated at US$ 815 million in 2017 and is expected to grow by
4.8% in 2018
 The leading source market for international arrivals in 2016 was Europe with 47.3%, while
Asia Pacific was the fastest growing market with an increase of +21.7% (mostly from
China.)
 Total investments in Cote d’Ivoire’s hospitality industry amounted to US$ 85 million in
2016 and is expected to grow by 6.7% pa over the next 10 years.
 Between 2012 and 2015 The number of hotels had increased from 1,770 hotels / 27,431
rooms to 2,043 hotels / 30,471 rooms . This number is expected to double by 2020.
 Revenue generated by international visitors is estimated at US$ 207.5 million in 2017 and
is expected to grow by 4.9% pa over the next 10 years
 Hotel Management School of Geneva, Switzerland has opened a branch in Cote d’Ivoire to
address the critical need for capacity building in the booming hospitality sector
 Government expenditure in the hospitality industry was estimated at US$ 260 Million
between 2012 & 2015.
Hospitality Industry in CI – Vital statistics

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 As a major Business Destination due to the number of MICE
events throughout the year , Hotel room booking in the capital
city, Abidjan, is made up of 80% business travelers and 20%
leisure travelers
 Tourists spend an average of 3 nights per stay.
 Hotel occupancy rate averages between 65% and 69%.
 101,000 people directly work in the tourism sector
Hospitality Industry – Vital statistics
Bookings by Star Ranking
City Demand
Average price per night
(USD)
Abidjan 49% 60
Grand Bassam 28% 68
Yamoussoukro 11% 29
Bouaké 3% 24
San Pedro 3% 40
Average price per night in the most popular destinations
Profile of the travelers

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 A total of 365 hotel chain development pipelines were reported in Africa in
2016, with 64,231 rooms. This is a 29% increase, from the 2015.
 The number of international hotel chains in Abidjan has been on the rise since
2015
 Mangalis group invested US$ 42.5 million for the construction of a 3-star 180
room hotel and a 4-star 190-room hotel
 Azalai group invested US$ 42.5 million for the construction of a 4-star 200-room
hotel
 Carlson Rezidor group invested US$ 33.45 million for the construction of a 5-
star 263-room Radisson Blu hotel
 Louvre Hotels group invested US$ 14.2 million for the construction of 130-room
resort
 le Relais Paillote group invested US$ 2.3 million for the construction of a 3-star
30-room hotel
Top 5 Investments In The Sector

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Strengths
In 2016, the African Union launched a common visa
policy including visa-on-arrival for all African citizens. This agenda also
includes the goal of having a single African continental passport by
2020. Adoption of visa liberalization policies could increase Africa’s
tourism by 5 to 25%.
Diversity of landscapes and cultural richness: the country is one of the
most beautiful travel destinations in the continent.
Tourism has the potential to be the leading contributor to Cote d’Ivoire’
s total GDP, boosting its economic growth
Young and urban population part of the growing middle class
Growing uptake of e-commerce, enabling rise of tech startups
Infrastructure improvements (roads, airports, dams) and increasing
interest for the continent (airlines, international hotel chains, event
organization).
Strengths & Weaknesses

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Strengths & Weaknesses
Weaknesses
According to an African survey conducted in 2016, the major
issues regarding traveling in the continent are : cost, visa
restriction, travel booking and flight connection.
Increasing competition from emerging global tourist
destinations and lack of marketing for many African countries
Slow advancement of infrastructure (transport systems &
electricity supplies)
Lack of training of professionals, few hotel and tourist schools

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Investment Opportunities
 Until a recent past Sofitel Hotel Ivoire (Accor group) built in 1963 was the only
international brand in operation in the country. It still boasts the largest
convention center in the country with 1800-seat Plenary Hall
 When looking at Abidjan’s hospitality landscape, the city has over 300 hotels but
relatively few internationally-branded properties.
 Currently there is a huge deficit in terms of rooms that meet international
standard with only 2,200 rooms available at the moment.
 During the last EU-AFRICA Forum in November 2017 the demand for rooms
meeting international standard was estimated at 5,000 (versus 2,200 available).
 The region’s penetration of branded hotel chains is four times less than Europe.
There is a huge gap in the midscale and economy segments and as the middle
class grows, there is higher demand for the quality hotels.
 With its growth projections there is room to grow in Cote d’Ivoire’s hospitality
market, which has travellers in need of hotels with international standards that
provide a safe environment and the latest technologies.

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Recommendations
Funding of operations is still problematic and the scarcity of
financial resources hampers needed development of the
hospitality market in Cote d’Ivoire. Therefore, investors that can
bring in both technical know-how and funds have a significant
advantage.
We recommend any potential investor to operate with a local
partner familiar with all procedures, cultural differences and the
administrative maze.
We have completed our due diligence and identified a pool of
qualified business people. Most of them own pieces of prime land
in the bustling economic city of Abidjan and are ready to enter into
a win-win business partnership with Malaysian/Asian investors .

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Sources
• World Travel and Tourism,
• World Bank
• Oxford Business Group
• Jumia Travel (Data)
• CIA World Fact
• Cote d’Ivoire Tourism Board
• Coface
• W Hopsitality Group
• PwC