For decades, African leaders and their global finance experts have pinned their hopes on the continent’s rich abundance of natural resources for economic growth. In recent years, however, it has become increasingly clear that Africa’s greatest resource isn’t its mineral wealth or even its biodiversity, but its people.
Nowhere is that more true than in the fast-growing hospitality sector. Currently worth around US$25.16 billion, the continent’s travel and tourism sector (of which hospitality forms a major part) is set to grow to be worth US$33.54 billion by 2029. Simultaneously, the Hotel Development Pipeline Report by W Hospitality Group, reports that there are 577 hotels and resorts with more than 104,000 rooms in the pipeline across the continent. That represents a 13% increase over 2024.
Those hotels will bring significant opportunities for job creation across Africa, with the World Tourism and Travel Council (WTTC) predicting an additional 1.4 million jobs every year leading up to 2029. That kind of confidence also creates a positive loop, whereby investors feel confident backing new projects. Without that confidence, the Hilton hotel group’s June announcement that it plans to triple its African presence wouldn’t have happened. The same is true for other hospitality giants, including IHG and Marriott, who have similarly ambitious African growth plans.
To make the most of that growth and set African hospitality on the path towards meeting its full potential, operators within the sector can’t simply replicate what’s worked elsewhere. Instead, they must marry global wants within the space with local nuance and understanding.
The African opportunity: Growth, demand, and untapped potential
While the hospitality industry should celebrate its current growth trajectory, it’s worth reiterating that the opportunity for growth, demand, and untapped potential is so much bigger. That’s especially true when you consider how much room for growth there is in the intra-African travel market.
At present, for instance, just 46% of flights that originate in Africa are intra-African. Additionally, more than 64% of intra-African markets are served with seven weekly flights or fewer. And anyone who’s had to travel across Africa will tell you how expensive and complex it can be. Having to fly to Europe or a major hub like Dubai to get to another African country is inefficient but infuriatingly common.
But as more and more countries commit to open skies agreements and visa requirements are lowered, the continent could finally start to unlock its full travel and hospitality potential. That potential is massive too. According to research from the World Travel and Tourism Council, travel and tourism could add US$168 billion to the continent’s economy and create over 18 million new jobs over the next decade. The hospitality sector would be a major beneficiary of that growth.
Global best practice meets local intelligence
People being able to travel is one thing. Ensuring that they want to travel to your destination and stay at your hotel, resort, or lodge is another thing entirely. Key to that is ensuring that you’re fully set up for success in every market you enter. The best way of achieving that is by mixing global best practice with local intelligence. That’s especially true in markets as diverse as the African countries we operate in.
At Valor, we’ve entrenched this philosophy into our practices, including our franchise model. Each one of our projects is designed to reflect an authentic sense of place, meaning that each property resonates with the local culture. Additionally, we offer something more flexible than typical brand-managed agreements. Our approach is designed to give owners maximum control through adaptable terms and services.
Within that flexibility, we offer a full-service approach from concept to opening. That includes end-to-end development and pre-opening support, as well as proprietary training and development programmes aimed at developing teams personally and professionally.
As a result, owners get to combine brand recognition, trust, proven systems, and access to global distribution channels with local nuance and understanding. That means they can adjust offerings to suit local guest preferences and cultural expectations, work with local suppliers, artisans, and ingredients to create an authentic guest experience, and ensure pricing, design, and marketing align with regional economic realities.
Shaping the future of African hospitality
Africa’s hospitality sector has a bright future, especially as travel tourism across the continent continues to grow. But if the sector is to reach its full potential, melding global best practices with local knowledge is critical. Ultimately, Africa doesn’t need a cut-and-paste solution. It needs partners who understand the landscape and have the tools to cultivate sustainable hospitality that thrives.
Joep Schoof, Chief Operating Officer at Valor Hospitality Partners – Africa
