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    Home » Tourism and Hospitality: Unlock the hidden engine of Africa's GDP growth

    Tourism and Hospitality: Unlock the hidden engine of Africa's GDP growth

    overthebordersBy overthebordersJuly 21, 2025 Regional Spotlights No Comments5 Mins Read
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    As Africa strives to diversify its economic foundations and stimulate inclusive growth, the tourism and hospitality sector has emerged as a strong yet underpinned driver of GDP. Its rich cultural heritage, breathtaking scenery, vibrant cities and warm hospitality have great potential to become one of the world's leading travel destinations. More importantly, tourism represents more than leisure. It is a multidimensional catalyst for employment, infrastructure, forex revenues, and national branding.

    The undeveloped power of African tourism

    Globally, tourism contributes more than 10% to GDP, accounting for one in 10 jobs. However, in Africa, the average contribution of tourism to GDP accounts for around 7%, with even lower numbers in countries where tourism has not yet been formal or expanded. This disparity does not reflect the possibility of Africa. It is a relatively unexplored opportunity.

    From the walls of the Kingdom of Benin, to the Egyptian pyramids and the Masai Mara plains of Kenya to the beaches of the Seychelles and the historic slave ports of Senegal, Africa experiences stories, scenery and world cravings. The African Union Agenda 2063 recognizes this by highlighting tourism as an important pillar for socioeconomic change.

    Also Read: Nigerians in the Diaspora tasked with ending billions of naira medical tourism

    Hospitality as an infrastructure for opportunities

    Hospitality Industry: consists of hotels, resorts, restaurants, travel services and events, forming the physical and experiential backbone of tourism. Its development is key to attracting and maintaining international visitors, encouraging domestic travel, and enabling regional integration through tourism within Africa.

    The well-developed hospitality infrastructure supports business travel, meetings, sporting events and diaspora homecoming, all injecting capital into the local economy. Ripple effect continues for each hotel built or upgraded. Jobs are created, local suppliers are involved, transportation networks are improved, and tax revenues increase.

    Countries such as Rwanda, South Africa, Morocco and Mauritius have already enjoyed the benefits of strategic hospitality development. Rwandan's investment in ecotourism and conference tourism has made Kigali a model city for conferences in Africa. At the same time, South Africa's diverse attractions continue to attract millions of global tourists each year.

    Drivers of youth employment and entrepreneurship

    Tourism and hospitality are uniquely set up to create opportunities for young Africans. These industries are labor intensive and require a variety of skills, from culinary arts and customer service to digital marketing and tour guides. Millions of young Africans can empower them to participate in the value chain with targeted vocational training and support for entrepreneurship.

    “The hospitality industry, consisting of hotels, resorts, restaurants, travel services and events, forms the physical and experiential backbone of tourism. Its development is key to attracting and maintaining international visitors, encouraging domestic travel, and enabling regional integration through tourism within Africa.”

    Small and medium-sized businesses, especially women-led companies, thriving in this sector, offering handmade crafts, cultural performances, local cuisine and personalized travel services. By investing in tourism, governments can unlock comprehensive economic participation and reduce unemployment among vulnerable groups.

    Enabling factors for sustainable growth

    African countries need to address key enablers to transform tourism and hospitality into a real engine of GDP growth.

    1. Infrastructure improvements: Roads, airports, electricity and broadband connections are essential to attracting international and local tourists.

    2. Visa Reform: Simplified visa processes and pan-Africa travel policies may promote tourism within Africa, currently hampered by travel barriers.

    3. Marketing and Branding: Africa must tell its story through a coordinated campaign that demonstrates its safety, hospitality and uniqueness.

    4. Security and Stability: A stable political and social environment reassures investors and travelers alike.

    5. Digital Transformation: Online booking systems, e-tourism platforms, virtual tours are key tools for global competitiveness.

    Tourism beyond GDP: Diplomacy, Identity, Soft Power

    Tourism is more than economics. It is a tool of diplomacy and identity. It shapes how Africa is perceived, strengthens cultural pride and builds bridges between nations. The thriving tourism industry will enhance the soft power of the country, promote intercultural dialogue, and strengthen unity and potential across the continent.

    Events such as the Afroshera in Ghana, the Star Star Festival in Malawi, and the Cape Town Jazz Festival in South Africa show how tourism combines with the creative industry to enhance national influence and continental integration.

    Also Read: Akwa Ibom, UNDP Sign Deal Tourism, Boost Blue Economy

    Conclusion

    The future prosperity of Africa relies on an inclusive, sustainable and scalable economic sector. Tourism and hospitality meet all three criteria. With intentional investment, policy support and stakeholder collaboration, the sector can grow from the supplemental industry to a major contributor to GDP and social health.

    It's time for African countries to view tourism as an add-on to development and a strategic change lever. In doing so, they will attract the world to Africa, and make Africa shine brightly from within.

    Professor Lere Baale is CEO of the Nigerian Business School Netherlands International, and is a digital leadership transformation expert, strategic consultant and advocate for sustainable development in the public and private sectors of Africa.



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