The significant economic benefits to host countries of the influential Africa Hotel Investment Forum (AHIF) have been quantified in an independent assessment by the international audit, tax and advisory experts, Grant Thornton.
The total contribution to African economies is estimated at $16.8 million and since inception, it is estimated that AHIF has been responsible for deals cumulatively worth over $4billion.
The headline figures include direct, indirect and induced financial benefits – accepted economic multipliers – and run from the first AHIF in Morocco in 2011 to Rwanda last year.
On average, hosting an AHIF event brings a million dollars in direct benefit to the local economy, an additional 1.4 million dollars in indirect benefit and a substantial six-figure sum in tax to the host government.
AHIF’s benefits: Key findings – over 6 years:
- Direct contribution of AHIF to local economies projected at $6.9 million.
- Additional $9.9 million generated through indirect and induced impact, i.e. boosting local suppliers, increasing local spending power.
- Projected total of $1.1 million paid in taxes in various host countries.
- A projected total of 5,462 jobs – temporary or permanent – created or sustained.
- Delegate survey indicates a total deal value of $124 million, an average of $4.6 million per deal – translated for all AHIF events between 2011 and 2016, deals total an estimated $4.4 billion.
Report author, Martin Jansen van Vuuren, said: “One key gauge of AHIF’s success is the high-level of the delegates it attracts – the attending CEO’s and MD’s do not only spend more than average by staying in the best hotels but much more importantly, they are people with the ability to make decisions, including whether or not to invest in a destination – and that’s reflected in the value of deals done.”
“The report also highlights the fact that host economies benefit from wide media coverage and from the credential of hosting a top-level conference like AHIF. Doing so helps to attract further events, which boost local companies and provide job opportunities as well as the chance to develop skills.”
Commenting on Africa’s broader economic prospects, Martin said: “Economic growth of African countries may have slowed at present because of commodity prices, but commodity prices will rise again, and given hotel development lead-in times, which are three years on average, and taking in to account the life of the asset, which is decades after the hotel is built, this is a good moment for investment, in my view.”
Author: Staff Writer
Photo Credit: African Business Review