to this report

HorwathHTL ACCRA A4 4PP AW:Layout 1
21/9/12
08:02
Page 1
TM
ASIA PACIFIC
AUCKLAND, NEW ZEALAND
[email protected]
EUROPE
AMSTERDAM, NETHERLANDS
[email protected]
MIDDLE EAST
BEIRUT, LEBANON
[email protected]
BEIJING, CHINA
[email protected]
ANDORRA LA VELLA, ANDORRA
[email protected]
DUBAI, UNITED ARAB EMIRATES
[email protected]
HONG KONG, SAR
[email protected]
BARCELONA, SPAIN
[email protected]
JAKARTA, INDONESIA
[email protected]
BELGRADE, SERBIA
[email protected]
KUALA LUMPUR, MALAYSIA
[email protected]
BUDAPEST, HUNGARY
[email protected]
MUMBAI, INDIA
[email protected]
DUBLIN, IRELAND
[email protected]
SHANGHAI, CHINA
[email protected]
FRANKFURT, GERMANY
[email protected]
SINGAPORE, SINGAPORE
[email protected]
LIMSASSOL, CYPRUS
[email protected]
SYDNEY, AUSTRALIA
[email protected]
LISBON, PORTUGAL
[email protected]
TOKYO, JAPAN
[email protected]
AFRICA
CAPE TOWN, SOUTH AFRICA
[email protected]
RABAT, MOROCCO
[email protected]
TUNIS, TUNISIA
[email protected]
LONDON, UK
[email protected]
MADRID, SPAIN
[email protected]
NORTH/CENTRAL AMERICA
ATLANTA, USA
[email protected]
DALLAS, USA
[email protected]
DENVER, USA
[email protected]
LOS ANGELES, USA
[email protected]
LAS VEGAS, USA
[email protected]
MONTREAL, CANADA
[email protected]
TM
PHOENIX, USA
[email protected]
SAN FRANCISCO, USA
[email protected]
MOSCOW, RUSSIA
[email protected]
SANTO DOMINGO,
DOMINICAN REPUBLIC
[email protected]
OSLO, NORWAY
[email protected]
TORONTO, CANADA
[email protected]
PARIS, FRANCE
[email protected]
ROME, ITALY
[email protected]
SALZBURG, AUSTRIA
[email protected]
Hotel, Tourism and Leisure
SOUTH AMERICA
BUENOS AIRES, ARGENTINA
[email protected]
SANTIAGO, CHILE
[email protected]
SOFIA, BULGARIA (rep. office)
[email protected]
WARSAW, POLAND [email protected]
Special Market Report
ZAGREB, CROATIA
[email protected]
ZUG, SWITZERLAND
[email protected]
www.horwathhtl.com
Issue 2 - ACCRA, GHANA
HorwathHTL ACCRA A4 4PP AW:Layout 1
21/9/12
08:02
Horwath HTL Special Market Report
Page 3
Issue 2 - ACCRA, GHANA
COUNTRY DATA PROFILE - 2010
Population:
24, 391, 823
Population growth:
2.4%
GDP:
US$32.2 billions
GDP per capita:
US$1, 319
GDP growth (annual %):
8.0%
Foreign Direct Investment:
US$2.5 billions
Inflation rate:
8.0 %
GHANA
The first sub-Saharan country to gain independence in 1957,
Ghana is often seen as a model for political reform in Africa.
It has the second largest West African economy after Nigeria,
and the country is involved in a long-term process to consolidate
good governance and create an efficient regulatory environment.
• The last consecutive transfers of power between political parties
after presidential elections illustrate Ghana’s status as a stable
democracy. In addition, the country’s influence on the regional
political spectrum has strengthened and Ghana gained a
position of key regional political actor. However, spill overs
from regional conflicts could still represent a threat to the
political stability, even if they have been manageable so far.
• The parliamentary and presidential elections, scheduled for
December 2012, could further consolidate democracy even
after the sudden death of Ghana’s President last July who was
planning to stand for re-election.
• Ghana’s strong economic performances since the mid-1990s
are highly depending on few commodities (mainly gold and
cocoa) and individual remittances as major sources of foreign
exchanges. It has recently been growing faster (an estimated
13.7% GDP growth for 2011) as it has found oil and started
production in 2010.
• Ghana benefited from two successive debt relief programmes
(in 2002 and 2006). Ghana’s elevation to lower-middle
income status in 2010 is likely to block the access of
concessional finance from the World Bank. However, Ghana
should sign a $3bn China Development Bank loan.
• Growth prospects are favourable, driven by high commodity
export prices and the oil production but Ghana’s outlook will
depend on governmental ability to maintain fiscal discipline
and assist Ghana’s agricultural sector transformation.
• Ghana’s infrastructure constraint represents the major
challenge to growth and international competitiveness. The
limited coverage (restricting access to the northern part) and
the congestion of Ghana’s two ports remain major obstacles to
growth.
MORE DATA ON THE TOURISM SECTOR
• 1985 heralded official recognition of tourism as a prioritygrowing sector in the national economy. Legal incentives
(concessions, tax relief) but also constant economic growth
and political and social stability have led Ghana to emerge as a
significant Sub-Saharan Africa player in tourism.
• After developing a unique tourism offer related to the historic
slave trade, Ghana is also recently considering an ecotourism
strategy to improve a combo tourism including virgin forest,
tropical beaches and national parks visits.
While intra-regional visitors dominate the market, international
tourism, firstly originated from the USA, is continually
increasing for both leisure activities and business.
• City engaged with the global economy: presence of
international companies (Nestle, Guinness Breweries, Toyota or
Barclays Bank) and international organisations offices (FAO and
WHO regional offices for Africa...)
MORE DATA ON THE TOURISM SECTOR
ACCRA HOTEL/FACTS & FIGURES
Estimated number of hotel rooms in Ghana (2006): 21,200
Total number of rated hotels in the Greater Accra Region (2011):358
Total no. of rated rooms in the Greater Accra Region (2011): 12,185
Occupancy rate in international hotels (2011): 75%
Average daily room rate in international hotels (2011): US$ 180
ana
ACCRA: GROWING CONNECTEDNESS
Recent liberalization policies, favourable business environment
and constant growth have turned Accra into an African hub.
• Capital of Ghana: 2.3 million inhabitants (estimated urban
population)
• Major transportation hub: railway connections (including to
the main Ghanaian cocoa regions), Kotoka International
Airport and Tema Port (25 kilometres away) with a new
container terminal.
• The city has turned into a burgeoning metropolis facing rapid
immigration from the rural area, neighbouring countries and
the international diaspora. Historically built around colonial
forts, central Accra is circled by a Ring Road. However, the
expansion has been running faster than the planning, leading
to the construction of informal dwelling areas. This fastdeveloping urbanisation is currently one of Accra’s major
challenges.
• Ghana’s business environment is favourable to real estate
investors; hence demand for office, residential and retail areas
have been significantly increasing, this in turn benefiting from
a favourable economic growth and an expanded white-collar
workforce. Significant urban projects are planned or currently
under development.
• The Central Business District covering the Accra Central, Tudu
and High Street areas will host the mixed-use project “Gold
Coast City” (over 160 acres of retail, office towers and
residential development) including the Financial Centre
building (13 700 sqm of offices).
• The airport area benefits from the traffic into the CBD with
residential projects and office spaces, such as the “Rees
condominium”, the “Villagio Vista” (second phase of Villaggio
Complex), the “Icon House” project, the “Tulip Residences”.
• Development of Accra’s beachfront area into a luxury urban
node: Ghana’s first beachfront apartment project “La Beach
Towers” comprising three 18 storey towers.
• Ghana’s political stability and economic growth has also
begun to turn Accra into a regional player in the MICE
industry. 3 conference venues are among Accra’s MICE
facilities include the National Theatre, Ghana Trade Fair Centre
(built to hold pan-African events) and Accra International
Conference Centre (6,000-seat capacity).
SUPPLY
• There are currently some 80 hotels in Accra, accounting for
4360 rooms, of which 3900 are star rated. The global supply is
still dominated by local independent low end and midscale
properties, with uneven quality of service and product. The 1
to 3 local star segment accounts for more than 60% of rooms.
• Branded properties amount to 1, 400 rooms only, among
which the most significant players are: the 4-star Golden Tulip
Hotel (238 rooms), Mövenpick Ambassador Hotel (260 rooms),
Novotel (196 rooms) and the 3-star Best Western Accra Airport
Hotel (113 rooms) and Holiday Inn Accra Airport (168 rooms).
The only 5 star property is the Labadi Beach (104 rooms)
operated by the South African Legacy Group Holdings. The
bulk of these upscale and midscale branded units are mainly
oriented to the business travellers.
• As of 2006, several international chains have started to move
to the country, taking advantage of tax breaks and VAT
exemption incentives under the 2006 Tourism Promotion Act.
The last opening was the new-build Mövenpick Hotel & Resort
in 2011, on the site of the state-owned hotel Ambassador
Hotel.
• Accra has proven to be a strong market with limited risks.
International groups consider the city as a key destination to
develop a flagship property in West and Central Africa. In
addition, the city has become a must and a starting point for
new operators wishing to enter the African market. The
upcoming confirmed projects highlight this trend. The
Marriott hotel (209 rooms) initially planned for 2013 but
delayed, and the Kempinski Hotel Gold Coast City” (269
rooms) have been launched. In addition, 4 sites, located in the
airport area have been assigned to hotel developments among
which a Radisson and a Protea (the other projects may be
developed under Hilton and Accor brands). They should
increase the market by almost 70%, with the addition of 900
to 1000 rooms.
• As a result of urban and economic development, 2 hotel
clusters have developed in the city: the Airport district
concentrates most of branded units, as the Central Business
District will consolidate following the future openings.
DEMAND
• The economic growth and global dynamism have
strengthened arrivals of business travellers. They are estimated
to account for more than 50% of the total hotel demand.
This has generated a rising demand for business hotels
matching international standards.
• The largest share of international demand originates from
Sub-Saharan countries as a consequence of Accra’s regional
influence. However, non-African international demand has
been increasing and represents a significant percentage
(share) of demand in branded properties.
• Key sources of international tourism are the USA, with many
African-Americans interested to know more about their
history, United Kingdom and other parts of Europe.
Accra is also progressively attracting visitors from China,
India and Lebanon.
• Leisure travel is essentially related to cultural and historical
tourism on World Heritage Sites, even if the number of
beach visitors is increasing gradually.
• Despite Accra’s available conferences venues, Ghana’s
economy growth and Accra’s position as a major hub have
been generating an increase of the MICE segment in the
market mix of branded hotels. New projects are now
incorporating dedicated conference facilities.
PERSPECTIVES
• The development of international brands initiated over recent
years should continue over the next 5 years, generating a
significant increase in supply and a fast upgrading of the
market, the impact being mainly in 4 and 5 star projects.
• In the mid-term, an international economy-budget market
targeting regional demand will develop as brands such as
Onomo, Travelodge, Holiday Inn Express and Ibis could look
closely at this market. This should also support the rise of the
domestic market, now targeted as a key segment.
• In addition to international branded projects, 500-600 hotels
rooms are also planned in major urban development projects.
On a basis of 50% materialization ratio, this may add 250-300
units in the market within 2018.
• The business climate in Accra is dynamic, benefiting from Ghana’s
political stability and high oil prices. The boom in real estate
and hotels projects, operated by national and international
brands, underlines current investor’s confidence in Ghana.
• The economic context and the level of performances confirm
there is a market for proper and adapted business hotels or
units for short and long stays as well as rooms for local
business meetings and punctual events.
• In total, the hotel industry in Accra has demonstrated its resilience.
As long as Ghana is able to maintain a steady rate of economic
growth, we estimate that demand should absorb addition of
hotel rooms over the short term. However, a period of adjustments
will be necessary for the market before being able to absorb
new supply, over a longer period (2018 and beyond).
Philippe Doizelet, Managing Partner
[email protected]
+33 1 53 79 78 75 (Paris)
Beatrice Montagnier, Director,
[email protected]
+33 1 53 79 78 77 (Paris)
+221 77 288 77 77 (Dakar)