Investment Opportunities in COMESA Region: Tourism Sector

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Investment Opportunities in COMESA Region: Tourism Sector
Exploring the Mauritian Case &
Potential for the COMESA Region
Mr Raju Jaddoo, Managing Director, Board of Investment
November 2008

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Agenda
Mauritius: Economic Development, Investments & Tourism
New Developments in Hospitality industry: Anahita Case
study
Country Endowments: A powerful COMESA Region offering
Challenges for regional tourism development
Way forward – Investments, Growth & Hospitality
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Mauritius Development & Tourism
Tourism Facts & Figures
GDP Market
Year Hotel Tourist
Price (US$ M)
2000: ITES/BPO & Freeport
6,000
1970 20 30,000
1990s: India DTA & Global Business
1980 43 100,000
1980s: Hospitality: 100,000 tourists
1990 88 400,000
1980s: EPZ Textile boom 2,200
1970s: Sugar Protocol 2006 103 800,000
2007 102 906,971
400
1975 1980 1985 1990 1995 2000 2005
Tourism Expenditure
Bilingual Competitive Talents
1990: USD 350 – 400 Million p.a
Democracy Political Stability 2005: USD 1.5 Billion p.a
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Adjusting to External Shocks
Ripple effect of Oil Downward
Shock pressure on real
GDP growth
35
Sugar Protocol preferential price
30 US$ 519/T in 2008
25
U S cts/ Poun d
End of preferential
20
GDP (US$ M)
15
Sugar Protocol
10
World sugar price
5
0
70 75 80 85 90 95 0 5 6 8
1200
1000 EPZ Exports (US$ M)
Competition on
800
Textile exports
600
400
(China)
200
1975 1980 1985 1990 1995 2000 2005
0
1976 1980 1985 1990 1995 2000 2005
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5. The Mauritian Economic Transition
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Post 2006
Downward
pressure on real
GDP growth
GDP Market
8,600*
Price (US$ M)
Reforms to bring growth on track:
Ease of doing business
Broadening circle of opportunities in the
Hospitality Industry: IRS, Medical Tourism,…
2006 2008
1975 1980 1985 1990 1995 2000 2005
Source: Historical Series -National Accounts_CSO (* estimates)
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Integrated 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
Integration of IRS villa owners into the
Mauritian landscape, resilience to the
current difficult credit market situation
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7. New Developments in Hospitality
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industry
Case Study:
Anahita World Class
Sanctuary
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Overview
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
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.
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Goals
Investment: MUR 15 Billion
Expected Job Creation: 1500 long term jobs
Corporate Social Responsibility MUR 66 Million (approx. USD 2M)
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
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Delivery
Project Project Project
Identification Structuring Implementation
IRS Certificate issued Phase 1 & Phase 2
Different permits,
in 2005 by BOI implemented
licenses & clearances
obtained in 2006
facilitated by BOI Phase 3 launched
in Nov 2008
Anahita Fishermen
Solidarity Fund as Phase 4 to be
compensation for the initiated in 2009
fishermen
The Anahita Case Study: A Win / Win Equation
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11. Country Endowments
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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
Soft Assets
People
Multilingualism & Cultural compatibility
Ease of doing business / reforms
Safety & Political Stability
Infrastructure
…
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12. Country Endowments
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COMESA Region
Sea Frontage: A total of approx. 13,993 km
Extraordinary Array of Stunning Natural Resources:
Natural Park
Desert
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, …
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13. COMESA Region
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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
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14. COMESA Region
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Kenya & Safaris
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
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15. COMESA Region
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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
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16. COMESA Region
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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
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17. COMESA Region
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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?
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…
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18. COMESA Region
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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)
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
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Opportunities 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
Taking advantage of global media attention to promote tourism
Positioning COMESA countries over the long-term on the world tourist map
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Concluding remarks
Benefits of a thriving tourist industry for COMESA region
Increase GDP/ Income per capita
Increase job creation
Increase investment
Broaden / build economic base
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
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Thank you
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contact@investmauritius.com
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