Africa -  Senegal - Dakar

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HVS In-Depth Africa Hotel Valuation Index:   2021 | 2016 | 2015 | 2014

Although Senegal has had its share of crisis and unrest, it has been a model of democracy and economic stability in the Sub-Saharan Africa. One of the highest economic growths in Africa (7% in 2018) is supported by low inflation and a continuous increase in petroleum products exports.

Tourism represented 10% of the country’s GDP in 2018 boosted by an increasing number of arrivals from Europe and the USA and the significant efforts of the government to promote the country, notably Dakar as a destination since 2015.

Dakar is the heart of the Senegalese tourism. The opening of the new Blaise Diagne airport in December 2017 with a capacity of 5 million passengers improved accessibility to both Dakar and the MICE region of Saly. The Senegal Emerging Plan implemented in 2015 made it easier for foreigners to travel to Senegal, results are showing now with a strong increase in international arrivals and the diversification of tourism in the country. In 2018, the region was host of a significant number of conferences in Dakar and Saly whilst leisure tourism was developing in new poles such as Pointe Sarene and Nianing. Ecotourism and culture tourism are also two important sides of tourism in Senegal and in Dakar.

Dakar is prone to grow further in the next few years, with a strong regional positioning and a good accessibility. The discovery of crude oil reserves starting production in 2019/20 is likely to boost both the Senegalese economy and the corporate tourism in the region. In addition, major infrastructure and urban developments in the Dakar area will likely support the tourism growth in the next few years. The development of the Diamniadio pole, expected to host 300,000 inhabitants in 2020, along with the “Cité des Affaires de l’Afrique de l’Ouest” in place of the former airport, including residential units, commercial buildings, a financial district and multinational head offices are just two of many of the city’s projects.

Hotels’ performance was on the rise in 2017 and 2018 and this trend is expected to continue in the next few years. However, the increase in supply in the next few years may result in a drop in occupancies until the market absorbs the new supply. Hotel values grew by 11.3% in 2018 and are expected to remain quite stable in the next few years despite the increase in supply.

Change In Value For Market:

Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: More than -10%

For more information, please contact:

Rishabh Thapar, MRICS
[email protected]
  • +27 0 792790584 (m)