Travel & Tourism - Africa

  • Africa
  • In Africa, the Travel & Tourism market is projected to reach a revenue of US$24.42bn by 2024.
  • It is expected to grow annually at 4.98% resulting in a market volume of US$29.66bn by 2028.
  • The largest market in this market is the Hotels, which is projected to have a market volume of US$12.10bn by 2024.
  • The number of users in Hotels is expected to be 119.50m users by 2028.
  • The user penetration rate in Hotels is expected to increase from 13.2% in 2024 to 14.3% by 2028.
  • The average revenue per user (ARPU) for Hotels is expected to be US$142.80.
  • Online sales are projected to generate 75% of the total revenue in the Travel & Tourism market by 2028.
  • It is noteworthy that United States is expected to generate the highest revenue of US$199bn in 2024 in comparison to other countries worldwide.
  • In Ghana, the growing popularity of ecotourism is driving the demand for sustainable and responsible travel experiences.

Key regions: Malaysia, Europe, Singapore, Vietnam, United States

 
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Analyst Opinion

The Travel & Tourism market in Africa is experiencing a significant growth trajectory, driven by a combination of factors that are shaping the industry in the region.

Customer preferences:
Travelers in Africa are increasingly seeking unique and authentic experiences, driving the demand for cultural and adventure tourism. Tourists are drawn to the diverse landscapes, wildlife, and rich cultural heritage that the continent has to offer. Additionally, there is a growing interest in sustainable and responsible travel practices among visitors, leading to a rise in eco-tourism initiatives across the region.

Trends in the market:
In countries like Kenya and Tanzania, safaris remain a popular choice for tourists, with a focus on wildlife viewing in national parks and reserves. South Africa continues to attract visitors with its vibrant cities, stunning coastlines, and renowned wine regions. Egypt's historical sites such as the Pyramids of Giza and the temples of Luxor are perennial favorites among travelers. In West Africa, countries like Ghana and Senegal are gaining popularity for their rich history, music, and arts scenes.

Local special circumstances:
Political stability and security concerns play a crucial role in shaping the tourism landscape in Africa. Countries that have managed to maintain political stability and ensure the safety of tourists have seen a boost in visitor numbers. Infrastructure development, including improvements in transportation networks and accommodation options, also plays a vital role in attracting tourists to the region. Moreover, the presence of UNESCO World Heritage sites in many African countries serves as a significant draw for cultural and historical tourism.

Underlying macroeconomic factors:
The economic growth witnessed in several African countries has contributed to the expansion of the middle class and increased disposable incomes, enabling more people to travel both domestically and internationally. Government initiatives to promote tourism, such as easing visa regulations and investing in marketing campaigns, have helped bolster the industry. Additionally, the rise of digital platforms and online booking services has made it easier for travelers to research and plan their trips, further fueling the growth of the travel and tourism sector in Africa.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.

Overview

  • Revenue
  • Sales Channels
  • Analyst Opinion
  • Users
  • Global Comparison
  • Methodology
  • Key Market Indicators
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