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Togo, The Rising StarTourism & Hospitality Review | 2016
Togo Market Snapshot | Tourism & Hotels | Colliers International2
Togo Market Snapshot | Tourism & Hotels | Colliers International
Table of Contents
3
TOGO COUNTRY OVERVIEW
GNASSINGBE EYADEMA AIRPORTBuilding The West African Hub
LOME SEAPORTKey Demand Generator
TOGO TOURISM SWOT ANALYSIS
TAPPING INTO GENERATION Y
MARKET OPPORTUNITIESDeveloping The Right Asset Type
4
5
6
7
7
8
9
MARKET OUTLOOK 10
Togo Market Snapshot | Tourism & Hotels | Colliers International
52% 48%
Business Spending Leisure Spending
CAGR = 3%
2012
6.64 million
2016(f)
7.47 million
2020(f)
8.10 million POPULATION
population is coming of age creating a workforce with
disposable income and this informs the decision of
hospitality products tailored for them by operators.
Countries surrounding Togo such as Benin, Ghana and
Nigeria have a high Generation Y & Z population in
excess of 123 million which represents more than 50%
of the population in the countries.
Source: The World Bank, 2016
Source: WTTC, 2016
TOGO KEY ECONOMIC INDICATORS
DIRECT CONTRIBUTION OF TRAVEL AND TOURISM TO GDP
TOGO POPULATION EVOLUTION
INTRODUCTION
Togo, is a narrow land
mass of 57,000 sq. km
spanning northwards from
the shores of the Atlantic in
West Africa. The country
borders Ghana to the West
and Benin to the East via
the Gulf of Guinea and
shares a border with
Burkina Faso to the North.
The country is a member of
the Economic Community
of West African States
(ECOWAS), which has its
development fund
headquarters in Lomé.
GROSS DOMESTIC PRODUCT (GDP)
The recent pace of economic growth has contributed
to improving human development indicators.
results as civil strife has dissipated.
Economic growth has remained strong in recent
years due to agricultural production, the construction
of the main road networks, and the expansion of
other major infrastructure.
Source: International Monetary Fund (IMF), 2016
Note: Nominal GDP Values =
TOGO COUNTRY
OVERVIEW
A growing GDP, young population
and strong ties with neighboring
countries is an indicator that Togo
presents opportunities for
development of tourism & hospitality
products that attract travelers from
within its borders and beyond.
4
Year 2012 2016(f) 2020(f)
Nominal
GDP 3.00 3.99 5.42
Real GDP
Growth %5.90% 5.60% 5.50%
Inflation % 2.6% 2.1% 2.5%
ECONOMIC CONTRIBUTION OF TRAVEL AND TOURISM
GDP has risen sharply since 2009 as the country began
recovering from recession triggering both corporate and
leisure tourism to gain momentum.
64.6% of population
below 35 years of age
TOGO TOURISM SPENDING TRENDS
Source: WTTC, 2016
Gen Y & Z
53.5
152.4
175.5
0
20
40
60
80
100
120
140
160
180
200
EU
R M
illions
Nominal Tourism GDP (EUR Millions)
Togo Market Snapshot | Tourism & Hotels | Colliers International
Source: Société Aéroportuaire de Lomé Tokoin (SALT), 2016
TOGO AIRPORT PASSENGER FORECASTS
AIRLINES FLYING TO GNASSINGBÉ EYADEMA AIRPORT
The Gnassingbé Eyadema Airport will have
the capability to handle the Airbus A380, a
novelty among West African airports, and this
-regional
KEY INFORMATION
At present the airport serves as a hub for
Ethiopian Airlines' West African subsidiary, ASKY
Airlines.
In 2013, tourism flows into Togo began
increasing, contributing 25% of the total airport
arrival numbers after a slump in the market.
US$150 million was set aside for the
modernization and expansion of Gnassingbé
Eyadema Airport.
The new terminal started operations in April
2016 and was inaugurated by President Faure
Gnassingbé. Ultimately, it will be able process 2.5
million passengers annually and accommodate
A380 aircraft hence attracting more airline
demand to the airport and transform Lomé into a
-
In the long-term there are plans to build a brand
new airport at Tsevié, 40 km. from Lomé.
AIRPORT IMPROVEMENTS
The construction of a new 21,000m² terminal
with three levels conforming to IATA
standards.
Capacity to simultaneously handle two large
planes and three medium-sized planes, and
15 aircraft in total.
Construction of a second taxiway and
elongating the existing one.
The development of a North-West axis
connecting both runway thresholds.
The integration of VIP lounges.
Offices and luxury duty-free shops.
Rehabilitation of the freight terminal to
process approximately 50,000 tons per year
against the current 10,000 tons.
The construction of an upscale hotel near the
terminal to accommodate transit passengers
and business travelers.
These upgrades are expected to attract new
flight carriers and hence more flight routes both
within Africa and internationally aiding in the
growth of tourism inflows via air travel.
5
GNASSINGBÉ EYADEMA AIRPORT
ASKY AIRLINES KEY FACTS AND FIGURES
3 Boeing 737-700
4 Dash 8 Q400
Flies to 22 destinations in 20 West and Central African
countries.
Has 210 weekly flights ferrying 10,000 passengers
Employs 250 ground, technical and
cabin crew
760 813 870 914 950 988
382552
472589
707 760
9601,075
1,1721,265
1,354
0
200
400
600
800
1,000
1,200
1,400
1,600
2010
2011
2012
2013
2014
2015
2016
(f)
2017
(f)
2018
(f)
2019
(f)
2020(f
)
No. of
Passengers
('0
00
)
Conservative Base Case Optimistic
Building The West African Hub
Togo Market Snapshot | Tourism & Hotels | Colliers International
LOMÉ SEAPORTLomé has one of the deepest sea port in all of
Western Africa. The Lomé Container Terminal
(LCT), currently under construction will have an
annual handling capacity of 2.2 million twenty-foot
container units. This project will allow shipping
companies to deploy the largest container vessels in
West and Central Africa.
The construction of a third pier for container ships
will have a length of 450 meters and a depth of 15
meters.
POTENTIAL FOR CRUISE TOURISM IN LOMÉ
Cruise tourism can be exploited as a way to show-
case their culture to various travelers who land on
its shores.
The increasing number of cruise ships docking in
Lomé carry mostly American tourists and have led
to the discovery of the destination.
Areas of interest for tourists docking at the Lomé
port include the Grand Marche, Akodessewa voodoo
market, the national museum and the German
Cathedral.
The government of Togo has the opportunity to
increase cruise passenger traffic through the
development of cruise terminals with capacity to
accommodate cruise vessels of various sizes.
The Lomé seaport may also look into signing
agreements with cruise operators e.g. Royal
Caribbean and Carnival Cruise Lines.
Source: Google Earth; Colliers International, 2016
CRUISE ROUTE EXAMPLE FROM CAPE TOWN TO ACCRA VIA LOMÉ
Source: Cruise Africa, 2016
KEY AREAS OF INTEREST IN TOGO
Key Facts
Duration: 18 Days
Destinations: 8
Countries
Passengers: 134 pax
Company: G
Adventures
Distance: Approx.
3,006nm
6
The Lomé Seaport will play a crucial
role in channeling inbound corporate
guests visiting for business transactions
within the port as well as cruise
tourists looking to experience the local
culture and attractions that Togo has to
offer
Luderitz
Lobito
Pointe-Noire
Sãu Tomé and Principe
CotonouLome
Accra
Cape Town
Walvis Bay
LOME II
GULF OF GUINEA
N2
N2LOME
CENTRE
GHANA
LOME SEA
PORT
AKODESSEWA
GRANDE
MARCHE
CANAL
N
ES
W
GNASSINGBE
EYADEMA AIRPORT
15MIN TO BENIN
Corporate
Demand Generators
Future Demand Generators
Transport
Hub
Road
Points of
Interest
Border
LOMÉ SEAPORT
Key Demand Generator
Togo Market Snapshot | Tourism & Hotels | Colliers International
• Togo is a preferred location for seminars and conferences organized by both African and International bodies.
• Togo ranks as the most secure and politically stable of its West African counterparts.
• Boasting the only deep sea port in the entire Western African region the processing capacity stood at 1.5 million Twenty-foot Equivalent Units (TEU) in 2015.
• Togo and its neighboring countries have a large
Generation Y population that will be a key market for
hotel operators .
• A hotel classification will be enforced and will result in the strengthening of the hospitality market particularly in Lomé II.
• The Société Aéroportuaire de Lomé Tokoin (SALT) is close to signing deals with new international carriers namely Air Egypt, Kenya Airways etc.
• Although not prevalent in Togo, Ebola is seen as a significant threat causing apprehension in the international community. Tourism recorded slower growth numbers in 2014 as a result of the presence of the disease in some African countries.
• Threat of high competition from other West African countries such as Benin and Ivory Coast, which attract a large number of leisure tourists.
• Under-developed infrastructure (e.g. roads) limits the growth of travel and tourism.
• Togo has not applied any official hotel classification criteria, hence, there is no clear definition of the star rating of hotels.
• There are very few quality hotels servicing the Togo market, most of which are in a state of disrepair and are poorly managed.
SWOT
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
Source: Colliers International, 2016
GENERATION Y HOTEL CONSUMER INSIGHTS
growth. Hotels focusing on Generation Y feature
contemporary designs with focus on technology and
social space.
Gen Y Hotel brands also make use of social media and
online travel platforms to market themselves to their
tech savvy consumers.
African consumer trends are changing fast as the
middle class grows and buyers become more
sophisticated.
Togo currently has a strong MICE appeal and Gen Y
brands entering the market should provide facilities
that cater to this segment.
AFRICAN CONSUMER TRENDS
• Increased brand awareness
• Adoption of Western buying habits
• Increase in online purchasing
• Value for customer service
• Demand for quality products
INTERNET AND MOBILE PENETRATION IN AFRICA
• 7 in 10 young Africans use social media on phone
• 1 in 5 young Africans have purchased products or
services with their mobile phone
• 97% of the African population will have mobile
subscription by 2017, and 30% will have
smartphone connection
TOGO TOURISM SWOT ANALYSIS
HOTEL MARKETING PLATFORMS FOR GENERATION Y
Togo and its surrounding countries (Ghana, Benin, Ivory Coast & Nigeria) have a large population of Generation Y
and this is a key factor for hospitality investors to consider as they introduce a product for the market.
TAPPING INTO GENERATION Y
7
• Gen Y keen on fitness hence gyms should be furnished with the
latest equipment.
Fitness as a focal point
ATTRIBUTES OF GENERATION Y HOTEL BRANDS
• Sampling cuisines from Togo and the rest of Africa in
restaurants within the hotels.
Afro-fusion cuisine
• Rooftop lounges and lobbies with expansive atriums featuring
to connect with their peers.
Open social areas
• Incorporating local art and design into the look and feel of Gen Y
brands in Togo will generate further interest in customers who
are looking for something unique.
Local art
• Providing essential technology like hotel-wide WiFi coverage for
guests and using minimalistic design language in the
construction of hotels.
Technology & Efficient Design
Togo Market Snapshot | Tourism & Hotels | Colliers International
35%
13%11%11%
10%
9%6% 5%
France / Belgium Benin
Ghana Other West African
Ivory Coast Other
Other European USA
Source: Colliers International, 2016
Source: Colliers International, 2016
Source: Euromonitor International; Colliers International, 2016
MARKET UPDATES
Lomé has a limited supply of quality hotels (only
1,180 keys) and the rest of the market supply is
still sub-standard.
with a performance above 55% over the past four
years.
The year 2015 saw an 11% increase in occupancy
levels, reaching 62% for the full year. This
increase in demand was driven by seminars,
increased corporate activity, and increased sea
port activities.
Top performers in the market usually have
occupancy levels of about 68-71%. Hotels in Togo
with international affiliations are popular with the
European market as they have better distribution
channels and brand awareness.
Recent hotel openings in Lomé include; Radisson
Blu, Onomo Hotel and the Olodge which is 30km
from the city centre. A notable upcoming property
in Lomé is the 5-star Pefaco Hotel (2018).
DEMAND SEASONALITY
during the summer (averaging at 79%) for both
business and leisure segments due to increased
arrivals from Europe (leisure) and West Africa
(business).
Occupancy then sees a gradual decline in
December, to then reach an average of 47%
during the months of January, February and
December.
GUEST SEGMENTATION AND NATIONALITIES
by French and West African nationals. This is
countries, and its long lasting ties with the French
government.
The majority of demand is represented by the
corporate segment, which is related to a number
of local companies including, Nestle, Eco Bank,
World Bank, and insurance companies who sign
corporate contracts with hotels.
Corporate contracts with hotels are expected to
increase as the economy develops, hence, providing a
Togo is also keen on marketing itself as an immersive
cultural and eco-tourism destination on an
international level and was a participant in the
Exhibition of Tourism Madrid (FITUR) in January
2016.
- 2015
Although the quality hospitality supply in Lomé is
relatively small, the future is promising especially
for new entrants thanks to a ramp-up in socio-
economic activity and a workforce which is coming
of age.
8
- 2015
-33%-30%
-24%
-6%
6%
21%18%
23%
17%
6%
17%
-12%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
+/- change in occupancy vs. annual average
High Season
77%
15%
6%
2%
Corporate Transient
Leisure Other
58% 57% 56%
62% 63%
0%
10%
20%
30%
40%
50%
60%
70%
80%
2012 2013 2014 2015 2016(f)
ADR RevPAR Occupancy
Forecast
Togo Market Snapshot | Tourism & Hotels | Colliers International
LOMÉ II SMART CITY
LOME II
A new administrative and financial hub located in the
district of Lomé II is under planning.
The complex will feature 1,000,000m2 of office space,
2,000 individual and community housing units and
100,000 m2 of sport, conference and leisure facilities.
Hotel operators should position themselves
strategically to take advantage of the opportunities
that Lomé II will offer.
LEISURE
The leisure market in Baguida could be developed as
the town has a sandy coastline and could be marketed
as a get-away from the bustling city life.
Kpalimé, Kara, and Sokode could be branded as
ecotourism destination with excursions in the hill
country.
BRANDED HOTEL SUPPLY
There is lack of competition in the high-end hotel
market hence, the prices charged by premium
accommodation facilities will remain high in the
forecasted periods. Hotel operators offering quality
budget hotel products may take advantage of this
situation to fill a gap in the market to service guests
who are price sensitive but keen on having
international standard accommodation.
KEY OPPORTUNITY DRIVERS
Togo has an abundance of ecological attractions
offering extensive bio-diversity in its protected
natural habitats.
The prospect of the new adventures that Togo
may offer is also spurring interest among
prospective tourists.
and phosphate, attract business travelers who are
keen on exploiting new opportunities.
Koutammakou, located in the Kara region is a
place of special interest as it is a UNESCO World
Heritage Site.
There is an opportunity for both African and
International Branded Hotels to operate in
Togo especially due to the lack of operators
in the high-end hotel segment and the
provision of quality room products.
9
MARKET OPPORTUNITIES
Source: Colliers International; Google Earth, 2016
COUNTRYWIDE HOSPITALITY OPPORTUNITIES
Atakpame Kara
Sokode Kpalime
Eco-Tourism
Lodges
SOKODE
KARA
ATAKPAME
KPALIME
LOME
LOME II
GULF OF GUINEA
LOME
CENTRE
GHANA
CANAL
COAST
LINE
N
ES
W
GNASSINGBEEYADEMA AIRPORT
3,4 & 5 Star
City Hotels
4 Star Airport
Hotel
4 & 5 Star
Resorts
3 & 4 Star
Lodges
3,4 & 5 Star
City Hotels
The towns north of Lomé present an untapped opportunity
for eco-tourism focused establishments while Lomé centre
is mainly visited for corporate and MICE purposes.
Notably, the towns north of Lomé are underdeveloped and
Lomé centre is in the process of urban redevelopment e.g.
paving of roads.
Developing the Right Asset Type
Togo Market Snapshot | Tourism & Hotels | Colliers International
CONCLUSION: a true market shift is expected to occur in the next 5 - 10 years
• New branded operators enter the market offering various business, leisure and recreational facilities
across various customer tiers as the country shapes itself as the future hub of West Africa.
• The country presents a great opportunity for hospitality investors to make use of the first mover
advantage since the market is still untapped, particularly in the branded hotel segment.
FIR
ST-M
OVER
AD
VA
NTA
GE
GENERATION Y HOTEL BRANDSAs Togo has a large Generation Y population, hotel operators
offering brands focused on this young segment should bring
their product offering to the market.
EXAMPLES OF GENERATION Y HOTEL BRANDS
GENERATION Y HOTEL FACILITIES
Infinity pool Rooftop lounge
Modern Gym
Source: INSEED - TOGO, 2015
MARKET OUTLOOK
Gen Y
24%
76%
DEVELOPMENT AREAS FOR INBOUND TOURISM
Gaming/Casinos Waterparks
Eco-tourism lodges Nightclubs
10
• Theme parks
• Eco-tourism Lodges
• Waterparks etc.
Address Key Market Gaps
• Provision of branded and affordable hotel supply
• Ecotourism in Kpalimé
• Leisure and beach resorts in Baguida and along
the canal
Develop Leisure Tourism
• Nightclubs
• Discos
• Gaming/Casinos
West African Hub
• ASKY airlines has
expansion plans for Europe
and Middle East
• A380 handling
capabilities for newly
expanded airport
• One of the deepestports in West Africa
Shift in the Market
• Regional tourism to
increase in coming years
• Gen Y population is
large and makes up most of
the workforce
• Quality hotel supply is
the new focus
Market Status
• 68% - 71% occupancy levels for top
performing hotels in Lomé
• 2.5 million passengers
forecasted for the new
airport terminal
• 24% growth in RevPar
from 2012 to 2016
Investors should focus on developing both domestic leisure demand and inbound tourism.
Togo Market Snapshot | Hotels | Colliers International
Colliers International Hotels
Colliers International Hotels division is a global network of specialist consultants in hotel, resort,
marina, golf, leisure an spa sectors, dedicated to providing strategic advisory services to owners,
developers and government institutions to extract best values from projects and assets. The
foundation of our service is the hands-on experience of our team combined with the intelligence
and resources of global practice. Through effective management of the hospitality process,
Colliers delivers tangible financial benefits to clients. With offices in Dubai, Abu Dhabi, Jeddah,
Riyadh and Cairo, Colliers International Hotels combines global expertise with local market
knowledge.
SERVICES AT A GLANCE
The team can advise throughout the key phases and lifecycle of projects
• Destination / Tourism / Resort / Brand Strategy
• Market and Financial Feasibility Study
• Development Consultancy & Highest and Best Use Analysis
• Operator Search, Selection and Contract Negotiation
• Pre-Opening Budget Analysis and Operational Business Plan
• Owner Representative / Asset Management / Lenders Asset Monitoring
• Site and Asset Investment Sale and Acquisition/Due Diligence
• RICS Valuations for Finance Purposes and IPOs
Our hotels team in the MENA region:
$9 39,200 8,880billion keys Hotel keys
investment value of valued under asset management
projects advised
About Colliers International
Colliers International is a global leader in commercial real estate services, with over 16,000 professionals operating in 66 countries. Colliers International delivers a full range of services to real estate users, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services and insightful research. The latest annual survey by the Lipsey Company ranked Colliers International as the second-most recognized commercial real estate firm in the world. In MENA Colliers International has provided leading advisory services through its regional offices since 1996. Colliers International currently has four corporate offices in the region located in Dubai, Abu Dhabi, Riyadh and Jeddah.
colliers.com
Colliers International, 2016
The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to
ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their
professional advisors prior to acting on any of the material contained in this report.
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For further information,
please contact:
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