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Investment Opportunities in COMESA Region: Tourism Sector
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www.investmauritius.comwww.investmauritius.com
Investment Opportunities in COMESA Region: Tourism Sector
Exploring the Mauritian Case &
Potential for the COMESA Region
Mr Raju Jaddoo, Managing Director, Board of InvestmentNovember 2008
www.investmauritius.comAgenda
� Mauritius: Economic Development, Investments & Tourism
� New Developments in Hospitality industry: Anahita Case study
2
� Country Endowments: A powerful COMESA Region offering
� Challenges for regional tourism development
� Way forward – Investments, Growth & Hospitality
www.investmauritius.comMauritius Development & Tourism
2,200
GDP Market
Price (US$ M)
1980s: EPZ Textile boom
1980s: Hospitality: 100,000 tourists
1990s: India DTA & Global Business
2000: ITES/BPO & Freeport6,000
Year Hotel Tourist
1970 20 30,000
1980 43 100,000
1990 88 400,000
Tourism Facts & Figures
3
Political StabilityDemocracy
1975
400
2,200
Bilingual Competitive Talents
1980s: EPZ Textile boom
1970s: Sugar Protocol
1980 1985 1990 1995 2000 2005
1990 88 400,000
2006 103 800,000
2007 102 906,971
Tourism Expenditure
1990: USD 350 – 400 Million p.a
2005: USD 1.5 Billion p.a
www.investmauritius.comAdjusting to External Shocks
35
Ripple effect of Oil Shock
Downward
pressure on real
GDP growth
4
05101520253035
70 75 80 85 90 95 0 5 6 8
US cts/Pound
End of preferential Sugar Protocol
Competition on Textile exports (China)
1975
GDP (US$ M)
1980 1985 1990 1995 2000 20050
200
400
600
800
1000
1200
1976 1980 1985 1990 1995 2000 2005
Sugar Protocol preferential price
US$ 519/T in 2008
World sugar price
EPZ Exports (US$ M)
www.investmauritius.comThe Mauritian Economic Transition
Post 2006
GDP Market
Price (US$ M)
Downward
pressure on real
GDP growth
8,600*
5
1975 1980 1985 1990 1995 2000 2005 2008
Source: Historical Series -National Accounts_CSO (* estimates)
2006
Reforms to bring growth on track:
� Ease of doing business
� Broadening circle of opportunities in the
Hospitality Industry: IRS, Medical Tourism,…
www.investmauritius.comIntegrated Resort Scheme
� Using Recurrent Clients and Mauritian Brand Name to broaden the Hospitality base
� Integrating the Hotel and Villa concept into beachfront properties: leasehold land for hotels and freehold land for villas
6
leasehold land for hotels and freehold land for villas
� Integration of IRS villa owners into the Mauritian landscape, resilience to the current difficult credit market situation
www.investmauritius.comNew Developments in Hospitality
industry
Case Study:
Anahita World Class
Sanctuary
7
www.investmauritius.comOverview
� Anahita World Class Sanctuary project:
� Development of a luxury Four Seasons Resort
� 45 world class luxurious Four Seasons branded villas
� 325 luxury private residences comprising of 70 waterfront residences,
200 estate villas, 15 golf villas and 40 golf lodges and
8
200 estate villas, 15 golf villas and 40 golf lodges and
� An 18-hole, par 72 championship Ernie Els signature golf course.
� The development is being carried out over 213 ha of land with a unique 6 km sea frontage.
www.investmauritius.comGoals
� Investment: MUR 15 Billion
� Expected Job Creation: 1500 long term jobs
� Corporate Social Responsibility MUR 66 Million (approx. USD 2M)
9
� Employability: Educate unemployed
� Youth Development Programmes
� Special school for Disabled Children
� Rehabilitation of socially marginaised ‘Street’ Children
� Economic empowerment
� Assistance for setting up new small enterprises
� Environment Protection
www.investmauritius.comDelivery
� Different permits,
licenses & clearances
obtained in 2006
� Phase 1 & Phase 2
implemented
Project
Identification
Project
Structuring
Project
Implementation
� IRS Certificate issued
in 2005 by BOI
10
obtained in 2006
facilitated by BOI
� Anahita Fishermen
Solidarity Fund as
compensation for the
fishermen
� Phase 3 launched
in Nov 2008
� Phase 4 to be
initiated in 2009
The Anahita Case Study: A Win / Win Equation
www.investmauritius.comCountry Endowments
Mauritius
� Mauritius, a remote location within the Indian Ocean
� Sea Frontage: 177 km
� From remote to Exclusive
� From Sun, Sand & Sea to an Emotional Experience
� Branding Mauritius: Holistic approach to hospitality, investment & trade
11
� Branding Mauritius: Holistic approach to hospitality, investment & trade
Soft Assets
� People
� Multilingualism & Cultural compatibility
� Ease of doing business / reforms
� Safety & Political Stability
� Infrastructure
� …
www.investmauritius.comCountry Endowments
COMESA Region
� Sea Frontage: A total of approx. 13,993 km
� Extraordinary Array of Stunning Natural Resources:
� Natural Park
� Desert
� Mountains
12
� Mountains
� Safaris
� Deep Sea
Vantage Points:
� Cross selling opportunities: Crowd Pullers
(Kenya Safari / Egypt, …) & New Explorations
� Large number of flagship hotel brands present in
the region: Hilton, Sheraton, Inter-Continental, Four
Seasons, Taj, Movenpick,, Oberoi, …
www.investmauritius.comCOMESA Region
Egypt & Historical Tourism
� One of the most tourist attractive countries in Africa, attracting millions of tourists a year. In 2007, Egypt attracted about 9.8 million tourists.
� The country is strong in Pyramids, Desert and Beaches
131313
www.investmauritius.com
Masai Mara Game Park
Dubbed one of the 7 New wonders of the
world, the annual Migration is a natural
cycle that replenishes and renews the
grasslands of East Africa. Around 1.3
million Wildbeast migrate
COMESA Region
Kenya & Safaris
14
www.investmauritius.comCOMESA Region
Uganda & Eco-Tourism
� Tourism – 9.2 % of GDP
� Unique untapped potential – ecotourism, bird life
� Snow capped Ruwenzori mountains – most challenging of African mountains by hikers
� Queen Elizabeth National Park - 100 mammals species and more than 600 bird species
15
than 600 bird species
www.investmauritius.comCOMESA Region
Madagascar & Endemic Species
� Tourism - 7.8% GDP Contribution
� 80% of UNIQUE endemic flora and fauna species
� Madagascar is a world leader in the development and implementation of environmental best-practice
� Ambition to become leader in high-quality ecotourism in Sub-Saharan Africa & Indian Ocean
16
Saharan Africa & Indian Ocean
www.investmauritius.comCOMESA Region
Projecting Tourist Growth
� COMESA tourism in 2004/2005:
� Approx. 17.7 M tourists visited the region
� Tourism industry contribution: USD 9,855 M
� Projections 2015?
17
� Projections 2015?
� Linear v/s Exponential
� Things as usual v/s Paradigm Shift
Vantage Points:
� Mauritius will double its number of tourists to
2 million p.a by 2015.
� Investments in infrastructure, airport facilities,
branding…
www.investmauritius.comCOMESA Region
Key Challenges
� Improve security for visitors
� Improve existing infrastructure & facilities
� Improve air connections: inter–COMESA & target markets
� Increase market awareness of the regional product & diversify offerings (cross-selling opportunities)
18
offerings (cross-selling opportunities)
� Broaden circle of opportunities: IRS / Medical Tourism / …
� Improve Doing Business in COMESA (DB World Bank Survey)
� Increase inter-regional investments: low compared to non-COMESA FDI
www.investmauritius.comOpportunities From World Cup 2010
� One million tourists expected in South Africa for the 2010 World Cup to be
held from 11 June to 11 July 2010
� Opportunities for COMESA countries:
� Devising special packages for Tourists & World Cup Fan Base
19
� Devising special packages for Tourists & World Cup Fan Base
� Taking advantage of global media attention to promote tourism
� Positioning COMESA countries over the long-term on the world tourist map
www.investmauritius.comConcluding remarks
� Benefits of a thriving tourist industry for COMESA region
� Increase GDP/ Income per capita
� Increase job creation
� Increase investment
� Broaden / build economic base
20
Concluding Remarks:
� The COMESA region has highly desirable and unique offerings
� The region has investors in the form of the most renowned international
hotel chains
� There are new opportunities in the Hospitality industry
� Cross-selling & market awareness will get us forward
� A paradigm change in the way we look at Hospitality in the COMESA
region can result in exponential GROWTH