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After the gorillas, what's next for Rwanda's tourism and hotel industry? New international airport key to unlocking Rwanda as a business and tourism hub
International Visitors Arrival Trend Visitor Arrivals (in Thousands)
Growth(%)
"Rwanda , known as the Land of a Thousand Hills, is nestled in central Africa, adjacent to Uganda , Tanzania , Burundi , and the Democratic Republic of Congo. It's best known to luxury travelers as one of the three natural habitats of the endangered mountain gorilla species Prior to the COVID-19 pandemic, the destination recorded a total of l ,632 ,000 international visitors in 2019, with a l 0-year CAGR of l 0% between 2009 and 2019 .
1,800
60%
1,600
40%
According to the Rwanda Development Board , the tourism and hospitality industry contributed l 3% of GDP in 2019 with USD65 million generated from the MICE segment The growth of the MICE business is largely due to the high level of safety and security. The average length of stay (ALOS) of East African countries arriving in Rwanda via flights for business purposes was 5. 24 days with an average daily expenditure of USD 152 in 2019.
400
1,400 20%
1,200
0%
1,000 800
I
600 200
0
11111
-20% -40% -60% -80%
I'-.. 00 0- 0 N M 'St ") -0 I'-.. 00 0- 0 000----------NN 000000000000000 NNNNNNNNNNNNNNN
-
Total Arrivals
- - %Δ
Source: Rwanda Development Board and C9 Hotelworks Market Research
The Democratic Republic of the Congo was the main international source market , representing 54% , followed by the Burundi market in 2019 . The biggest source market outside Africa was the United States , which totaled 40 , 167 visitors in 2019 , and are most notably bucket-list luxury travelers
There are only four 5-star hotels in Rwanda, namely, Kigali Marriott Hotel (254 keys) , Kigali Serena Hotel ( l 48 keys), Radisson Blu Hotel (292 keys) , and One & Only Nyungwe House (22keys). Rwanda remains in early stage development but given rising infrastructure, is primed for growth." Bill Barnett, Managing Director, C9 Hotelworks
•
Rwandan government launched an economic recovery fund of USD 100 million in 2020, with half being dedicated to the tourism and hospitality industry In 2022, an additional USD250 million was injected as phase two to stimulate the COVID-19 recovery
•
Regional African visitors are the main market feeder for the country, accounting for 88% of total international visitors in 2019.
•
The hotel and service sector is facing staffing issues due to the limited availability of trained employees with hospitality and tourism service skills.
•
Kigali's new gateway Bugesera International Airport is scheduled to open in 2023, is expected to grow annual passenger capacity significantly from 1 .5 million passengers !current air gateway) to 7 million in phase one and 14 million by phase two. Gator Airways is a partner in the mega project.
•
A planned lsaka-Kigali Railway Project would be the first passenger railway line in Rwanda. The 450-km-long railway is set to connect Rwanda and Tanzania.
•
The Kivu Queen luxury cruise vessel, which will be the first floating accommodation on lake Kivu with l O cabins is planned to open in late 2022 .
TOURISM MARKET REVIEW Tourism Indicators Tourism Revenue Growth(%)
USD (M) 600
40%
500
20%
400
0%
300
-20%
200 100 0
II
I II II -
Tourism Revenue
Compound Annual Growth Rate (CAGRl
2009 - 2019: 11%
-40% -60%
Tourism Revenue
-80%
USD498 million (2019)
Source: Rwanda Development Board and C9 Hotelworks Market Research
--Annual Growth
National Parks Visitation Growth(%)
Number of Visitors 120,000
80% 60% 40% 20% 0% -20% -40% -60% -80%
100,000 80,000 60,000 40,000 20,000 s:)C\ ~Cl ~' ~'I- ~~ ~~ ~', ~b ~ ~'o ~C\ fl,Cl fl,'- ~"> 'I-Cl 'I-Cl 'I-Cl 'I-Cl 'I-Cl 'I-Cl 'I-Cl 'I-Cl 'I-Cl 'I-Cl 'I-Cl 'I-Cl 'I-Cl f\,
-
Volcanoes National Park Nyungwe National Park
Total Number of Visitors
l l l , l 36 (2019) International vs. Rwandan Citizens 61 % vs. 31 % (2019)
"'c:i"'
Akagera National Park --Annual Growth
Source: Rwanda Development Board and C9 Hotelworks Market Research
Top 5 International Geographic Source Markets Number of Visitors 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000
DR Congo: 48.4% Burundi : 15.6%
I DR Congo ■
22
2017
II. II. .. Burundi
Uganda
■
2019
2018
Uganda: 11.1%
••
Kenya
■
2020
■
■
Tanzania
2021
C9 Rwanda Tourism Market Review: October 2022
(2019)
Source: Rwanda Development Board and C9 Hotelworks Market Research
HOTEL MARKET REVIEW Hotel Supply - Countrywide Accommodation Establishments & Key Counts Esta blishments
Keys
1000
18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0
800 600 400 200 0
Total Supply
17,078 keys Total Establishments
870
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
-
Establishments
Source: Rwanda Development Board and C9 Hotelworks Market Research
--Keys
Hotel Development Insight
Branded vs. Non-branded
■
5-star
■ 4-star ■ 3-star
2-star ■
1-star
■ Not rated
57% of hotel supply are in th e Budget and Economy tiers
90% are unbranded hotels Source: Rwanda Development Board and C9 Hotelworks Market Research
Rwanda Hotel Pipeline There are four notabl e upcomin g hotels w ith a total of 6 10 keys, w ith half affiliated to internati onal brands. Three are located in Kigali , w hich is the main gateway capital city. Hotels Kivu Q ueen by M anti s
Locati on Lake Ki vu
Ke s 10
200 200 200
O dalys City Busin ess Apart Hotel
Ki gali
MGall ery Ki gali
Ki gali
Century Park Hotel and Res idences Kigali
Ki gali
O enin
2022 2024 2025 2025 Source: Tophotelprojects and C9 Hotelworks Market Research
23
C9 Rwanda Tourism Market Review: October 2022
BILL BARNETT MANAGING DIRECTOR C9 Hotelworks is an internationally recognized consulting firm with extensive experience in the Asia Pacific region. Its core business focus includes : •
Hotel and Resort Development
•
M ixed-U se Branded Residences Advisory
•
Project Feasibili ty and Ana lys is
•
Hotel Operator Search
Key competencies include internationa l hotel operator search , selection and con tra ct negotiation , mixed use hotel and residen tial planning and opera ti on reviews . A w ide range of both institutiona l and private developers and a comprehensive portfolio of completed projects give C9 Hotelworks the skill set and background to focus on key issues , evaluate complex ones and assist clients in achieving solid results. Ba sed in Phuket, Thailand and led by Manag ing Director Bill Barnett, w ho has over 35 years of experience in Asia Pacific, the firm is well positioned to serve an increasing demanding marketplace.
C9 Hotelworks Company Limited 9 lagoon Road, Tambon Cherngtalay, Thalang Phuket 83 l l O Thailand T +66 (0)76 325 345/6 E info@c9hotelworks com www.C9hotelworks.com