Africa -  Senegal - Dakar

For a comprehensive review of the Africa market, click below:
HVS In-Depth Africa Hotel Valuation Index:   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.

The widespread impact of the coronavirus (COVID-19) has had an unprecedented impact on hotels and hotel values worldwide. Consequently, the latest HVI analysis may no longer reflect the most current measure of lodging industry strength or the hospitality investment market.

In each of our offices across the globe, we are working tirelessly to analyze the impact of recent events and provide timely insights to help you navigate these uncharted waters. Because it is unclear how long the pandemic will last or how long related restrictions will be in place, we are updating our analyses on a weekly basis using the most current data.

Additionally, examination of value trends in prior cycles can provide useful information. Historical patterns, together with an understanding of the market’s current expectations for the eventual recovery of the industry and its performance, can provide insights on the likely trajectory of decline and recovery for hotel values.

For the Latest Information and Analysis on the Impact of COVID-19Click Here

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For more information, please contact:

Tim Smith, MRICS
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Rishabh Thapar
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