PKF Hotelexperts attend 2018 Indaba in Durban
14 May 2018
This was my 23rd Indaba and the first as the Director | Head of Africa for PKF hotelexperts. As a hotelier, turned consultant, this, at least I thought, was no longer my market. Why am I
saying this? Tour operators and agents don’t engage consultants who work in our field, but I was fortunate enough to meet some owners and investors who certainly do. In conversation with these it became apparent how strong the synergies are between PKF hotelexperts and the PKF audit and tax advisory firms and that we should certainly seek to work closer
Back to Indaba. Derek Hanekom, the old/new minister of tourism, who opened the event said: "Tourism already contributes about 8% to Africa’s Gross Domestic Product and employs 6.5% of the workforce. In 2017, a record 62 million people visited Africa – an 8% year-on year growth. However, this is only five percent of global tourists. "All the countries on the continent, to varying degrees, have the potential for exponential growth,"
With these figures in mind and with the experience PKF hotelexperts have in more established markets I am certain that we will be able to add a lot more value to the real estate economy on the continent as it too looks at the many different and exciting models available to work with hospitality assets.
When speaking about hotels, many people immediately think of very expensive five-star hotels and lodges. I am of the opinion that the real growth for Africa will be seen through two to four star hotels. I also am certain and support the development of more brands from Africa for Africa.
With the economic growth across our continent, travelers will need accommodation simply to do business. The opening of the skies and more liberal airline policies this will go hand in hand for main but also secondary cities. There are currently more than 75’000 rooms in the pipeline, meaning that they are either under construction or at least signed to be built. According to the various brands, 34’000 are to be opened by the end of 2019. Yet, construction of about 4’000 had not even commenced by quarter one of 2018. This goes to show that there are many issues with regards to the development of hotels in Africa. With the security and timeous availability of funding being one of the more obvious one. These issues make the need for decent advice more apparent, as all too often the very basics are ignored and the assembly of a complete and professional team to carry out the task is neglected. This is where PKF hotelexperts come in with our offering of services ranging from a bankable feasibility, operator selection, performance management through to exit strategy advice.
As a proud part of the PKF International Network we want to explore the synergies within the network for the benefit of all.
Director | Head of Africa