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A REVIEW OF DOMESTIC TOURISM IN AFRICA
CHRISTY TAWII
12TH NOVEMBER 2015, NAIROBIAFRICA TOURISM TALKS ATA’S 40TH ANNUAL WORLD CONGRESS: KENYA
• EUROMONITOR INTERNATIONAL
• GLOBAL OVERVIEW
• TRAVEL & TOURISM TRENDS IN AFRICA
• DOMESTIC TOURISM IN AFRICA
• DOMESTIC TOURISM IN AFRICA VS OTHER EMERGING MARKETS
• LOOKING AHEAD
CONTENT
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Vilnius
Cape Town
Santiago
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Bangalore
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2014 2015
-10
0
10
20
30
40
50Global Travel % Value Growth 2014/2015
% y
-on-
y gr
owth
Source: Euromonitor International, UNWTONote: Data is based on US$ at constant 2014 prices; Travel Expenditure data refers to the sum of outbound and domestic expenditure; Total Travel Expenditure data is based on 210 researched markets; Online and Mobile Travel Spending data is based on 57 major markets
GLOBAL TRAVEL INDUSTRY PERFORMANCE
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Global: Key Performance Indicators 2014/2015
% growth Europe Americas Asia Middle East Africa
2014 2015 2014 2015 2014 2015 2014 2015 2014 2015
Real GDP Growth 1.3 1.1 2.0 1.8 5.7 5.5 2.1 2.4 5.0 4.5
Arrivals (Trips) 2.8 2.6 8.0 3.7 5.0 5.7 5.4 3.4 3.3 6.0
Inbound Receipts (US$) 4.5 2.5 2.6 3.4 2.3 5.9 4.8 3.1 3.6 5.4
Airlines Value (US$) 1.9 1.2 18.3 4.8 4.1 6.7 5.0 6.2 -0.1 2.9
Hotels Value (US$) 1.1 0.3 6.1 4.8 6.6 6.4 3.3 4.5 1.1 6.0
Intermediaries Value (US$) 0.3 0.3 8.4 3.5 4.8 5.3 2.5 4.3 -0.1 5.9
Source: Euromonitor International, UNWTO
GLOBAL TRAVEL: KEY PERFORMANCE INDICATORS
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Digital Migration
Diversification
Foreign Direct Investment Boosting
Travel
Infrastructure Development
Hotel Expansion
Air Transportation Increasingly Competitive
Growing Alliances Across Industry
Players
Brand Improvement & Marketing Initiatives
TRAVEL AND TOURISM TRENDS IN AFRICA
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Business 23%
Leisure77%
Domestic Trips: Leisure vs Business % Volume 2015
2011 2012 2013 2014 20150
10
20
30
40
50
60
70
80
90
100
Domestic Trips in Africa vs. Inbound Arrivals 2011/2015
Domestic Trips Inbound Arrivals
Trip
s m
illio
ns
• Number of domestic trips far outweighs inbound arrivals during review period
• Leisure trips dominate number of domestic trips
• Countries such as South Africa, Nigeria, Kenya, and Morocco, had a high share of domestic business trips Business trips account for the bulk of overall spending
DOMESTIC TOURISM IN AFRICA
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DOMESTIC TOURISM
No Travelling Culture
Limited Household Incomes
Limited Knowledge of Options Available
Socio-economic Challenges
‘It’s Not for Us’ Attitude
DOMESTIC TOURISM IN AFRICA: PERCEPTIONS
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People are slowly changing their attitude towards domestic travel due to industry players & government initiatives to promote domestic tourism by showcasing the incredible
adventures that await local travellers
#sharemynamibia #TembeaKenya
DOMESTIC TOURISM IN AFRICA: CHANGING PERCEPTIONS
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US$ Per Capita Household Income 2014
Although African household incomes are one of the lowest globally, travelling and
income are not always related
Domestic travel tends to be cultural.There is more need to encourage local people
to travel by creating an environment with multiple options for travellers for lodging &
transport
DOMESTIC TOURISM: AFRICA VS. OTHER EMERGING MARKETS
Brazil India Nigeria South Africa0
100
200
300
400
500
600
700
800
900
1,000
US$
per c
apita
US$ Domestic Travel Expenditure Per Household 2015
Brazil India Nigeria South Africa0
5000
10000
15000
20000
25000
30000
US$
per c
apita
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Airline Industry: Flight Prices vs Distance
From To Distance (Km) Price (US$)
Nairobi Mombasa 482 76Cape Town Johannesburg 1398 79
Harare Victoria Falls 722 60Lagos Abuja 722 168
Windhoek Walvis Bay 440 254Accra Kumasi 254 105
Mumbai Kolkata 2001 91
Brazil India Kenya South Africa• GOL Linhas Aéreas• Azul
• IndiGo• SpiceJet• JetKonnect• Air India Express• GoAir
• Fly 540• Jambojet
• Kulula• Mango• Flysafair• Skywise
DOMESTIC TOURISM: AFRICA VS. OTHER EMERGING MARKETS
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Entry of LCCs
& other travel
modes to stimulate domestic demand
Focus on improving national domestic tourism
strategies
Intensified Marketing initiatives
Pricing strategies to accommodat
e local travellers
Digital presence
& start-ups
Strategic partnership
s
Domestic tourism in Africa has a lot of growth potential and can become a major revenue earner for many countries
LOOKING AHEAD
THANK YOU FOR LISTENINGChristy [email protected]
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