Nigeria hotel rooms trump SA

2013-06-14 09:27

Johannesburg - Within the next five years, Nigeria is expected to have the fastest growing hotel industry on the African continent, surpassing both South Africa and Mauritius.

Die Burger reports that by 2017 Nigeria is expected to have 21 000 hotel rooms, approximately 13 000 more than they do at the moment. This was found by a recent study conducted by Pricewaterhouse Coopers about the South African hospitality sector. 

The average hotel room tariff in Nigeria stood at S275 (about R2 544) in 2012, making it three times more expensive than the average South African hotel room, and 43% more than the average five star hotel room. By 2017 the price is expected to climb to about $338 (about R3 126).

The growing hotel industry is connected to the country's overall strong economic growth, based on its oil and gas industries, as well as an ever increasing number of foreign corporate visitors. 

According to dr. Nikki Forster, head of PwC's department for South African hospitality and gambling industry, the amount of hotel rooms increased with 27% in the past three years, but there's still an undersupply. 

She added that the hotel industry is currently functioning below its potential, mainly because of insufficient infrastructure and uncertaintly about electricity provision. 

Arthur Gillis, executive head of the Protea Hospitality Group, said that the group's developments in Nigeria amount to $70m this year. There are currently 11 Protea Hotels in the country.

Read more on:    hotels  |  travel international

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