Accra’s hospitality sector is better performing than that of Nairobi with the best investment opportunities being in its 3, 4 and 5 star hotels, that is according to the weekly market report of Kenyan independent investment management firm, Cytonn investments.
Although Kenya is famous for its great wildebeest migration, national parks, and pristine beaches, the hospitality sector in recent times does not come close to that of Ghana
Cytonn investments explains that the hospitality sector has better performance as well, with average daily rates of USD 210 compared to Nairobi’s USD 130.
They also have relatively higher occupancy at 61% compared to Kenya at 55% on average between 2013 and 2016, showing Ghana would be a better hotel investment location compared to Kenya.
The hospitality industry in Ghana recorded a 1.8% growth from 2015 to 2016 and is expected to grow by 1.1% in 2017, 2.1% in 2018 and 2.3% in 2019 according to the PwC Hotel Outlook 2017.
According to HTI Consulting, there were 2,723 hotels and lodges in Ghana as at May 2017; 56.0% of these are 4-star, 24.0% 5-star and 13.0% 3-star, showing the penetration of quality hotels.
The sector is largely driven by business tourism including conferences and economic growth and presence of multi-national firms such as Nestle, FAO and WHO.
As per Ghana Tourism Authority, this accounted for 31.9% of international tourist arrivals between 2012 and 2014.
The government of Ghana has also been keen on marketing the country to other countries in Europe and America for its heritage and tourism sites.
According to the World Bank, Ghana’s economy is set to be among the top five economies in Sub-Saharan Africa. This is because growth rates are expected to average 7% this year.