Esther Barranco |
Madrid (EFE).- The commitment to the internationalization of Spanish hotel companies has been reflected in recent years in the entry and expansion in Africa, a continent with high growth potential but which faces crucial problems for the development of tourism such as connectivity and security.
Africa is still far from recovering pre-covid tourism volumes (it is 35% below then, according to figures from the World Tourism Organization) but the main problems it must face to develop the sector are boosting air connectivity, strengthen legal certainty and create tourism infrastructure.
This was explained in conversation with EFE by the partner responsible for Tourism and Leisure at KPMG, Luis Buzzi, who added that the large American companies, which dominate the market, have a franchise model in which management risks are not assumed by the brand but their managing partners and this is a pattern that, with few exceptions, Spanish hotel companies do not develop.
Morocco is an old acquaintance with Spanish hoteliers, who are now also expanding to the southern hemisphere, especially Tanzania (with Zanzibar in the spotlight), Mozambique and the Scheychelles islands, where Meliá will open a hotel in 2025.
Unlike the Caribbean, to which Spanish companies built bridges decades ago because it is a natural place of expansion due to cultural ties, Africa has a great advantage for European tourism, its proximity in time zones, because they are in close meridians.
Barceló wants to continue growing in vacation and urban areas
The strongest presence on the continent is that of Barceló, which has 17 hotels in Africa, 12 of which are in Morocco and Tunisia. The company groups this continent with the Middle East area, and in this aggregate it has more than 5,500 rooms.
Morocco, with six hotels in five cities, has been a strategic country for Barceló since it opened its first hotel in 2006. Since then it has invested more than 150 million euros and plans to add another 50 million in five years in purchases and reforms to continue growing both in the vacation and urban segments, and in new destinations, such as the capital, Rabat.
In addition, Barceló is evaluating new projects in destinations where it already has a presence, as well as in new countries such as Cape Verde, where it will inaugurate a 5-star hotel on the island of Santiago before the end of the year, and Tanzania, where it plans to build a “resort ” in Zanzibar.
Meliá, the first Spanish hotel to open in Scheychelles
Meliá has 10 operating hotels on the continent, with 2,780 rooms, and a presence in Cape Verde (5 accommodations), Tanzania (3), Mozambique (1) and Morocco (1).
It has another 6 hotels with 1,675 rooms in the pipeline in Cape Verde (4 hotels), Tanzania (this year the Ngorongoro Lodge will open) and Seychelles (opening scheduled for 2025).
Meliá’s Vice President of Expansion, María Zarraluqui, explained to Efe that Africa has interesting destinations in the holiday segment, for which they are committed, both in places where the tour operation model (closed packages) predominates -in the case of Cape Verde- and the tailor-made trip -the case of Tanzania, for example-.
Zarraluqui points out that the group works in different segments of the scale (from medium to luxury) except in the lower-middle, depending on the opportunities that arise and always under management formulas, never as owners.
Riu, Mauricio first
Riu, with 17 hotels and more than 17,300 beds on the continent, is present in Cape Verde (6), Morocco (6), Tanzania (Zanzibar) (2), Senegal (1) and Mauritius under construction (9), in a A continent that has great potential for the company, among other things because of the time zone similar to Spain’s, closer than the Caribbean or Asian destinations.
According to Luis Riu, CEO of the chain, in a communication sent to EFE the company does not rule out continuing to grow in Senegal (with another hotel adjacent to the one it already has there) and in other neighboring countries, even with city hotels.
With average occupancy rates at Riu hotels of around 90% in recent months and somewhat lower demand in summer, the local market also plays a prominent role for the hotels of this chain, especially due to mice tourism (incentives and congresses ).
Spanish tourism has a greater incidence in the Moroccan hotels of the Riu family, while in countries such as Tanzania and Cape Verde it has less relevance, although the latter has growth potential thanks to several direct operations that will take place during the summer from Madrid and Barcelona, they point out in the company.
Connectivity, security and business model, main problems
KPMG partner Luis Buzzi explains that connectivity on the continent is not very widespread and is based, above all, on a tour operator model (with closed packages) that leaves less room for more open travel models, for which they opt the youngest or people looking for different experiences, for which Africa offers a great attraction.
A second major factor is legal, operational and personal security. It is, adds Buzzi, fundamental when it comes to attracting investments, given that the majority of Spanish hoteliers operate under a management regime with a financial partner.
Add personal security, which has increased in some of the countries where Spanish companies are located (Cape Verde or Senegal), although any element can generate impacts in this regard, such as the Arab spring in Tunisia, which caused a drop in tourism from which the country has not yet recovered and investment has slowed down.
For the promotion of tourism, the development of tourist infrastructures is also crucial, which does not exist in many cases in Africa. Spanish hoteliers invented the concept of “all inclusive” for destinations without such structures (such as the Dominican Republic) but that model has a limit to growth, explains the KPMG partner.
Growth on the African continent is also determined by the hotel management model. American and European companies are entering there with franchise models, in which they contribute the brand but do not assume the risk of the operation, a model that the Spanish companies hardly work, with exceptions such as Meliá.
Iberostar has nine hotels in Africa, six of them in Morocco and three more in Tunisia. Consulted by EFE, it has not offered more information. NH has a “resort” in Tunis.