August 14, 2025 • 14 mins
A private island off the coast of Tanzania, where guests pay around $50,000 a night for an exclusive-use villa, catamaran and helicopter transfers within a protected marine reserve is the latest frontier in Africa’s booming luxury hospitality market.
Bloomberg’s Prinesha Naidoo joins Jennifer Zabasajja to explain what's behind the boom in ultra luxury tourism, who’s benefiting and whether the economic boost is sustainable.
You can read Prinesha Naidoo's piece here, and for more stories from the region, subscribe to the Next Africa newsletter here
See omnystudio.com/listener for privacy information.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news. From fifty thousand dollars
a night villas on private islands to thirty thousand dollars
safari tracks. Investors are betting big on African tourism.
Speaker 2 (00:20):
They are only select numbers of camp on the African
continent that are considered to be ultra luxury.
Speaker 1 (00:26):
Welcome to the JW. Marriott Matthamira Lodge. Here in Kenyon. Billionaires,
tech moguls and Middle Eastern investors are all competing for
a share of a growing luxury tourism market. It's the
perfect place for families, for friends, and it's really your
own private marine reserve and a beautifully designed house. On
this week's Next Africa Podcast, we'll look at what's behind
(00:49):
the success of high end tourism in Africa, who are
the winners, and whether this growth could mean a much
needed source of revenue across the continent. I'm Jennifer's Abasajob
and this is the Next Africa Podcast, bringing you one
story each week from the continent driving the future of
global growth with the context only Bloomberg can provide. So
(01:14):
joining me to discuss this today is Bloomberg Reporter Parnisia
and I do. Prinisha, thanks so much for coming on
the podcast this week. I think it's your first time.
So luxury tourism is really what you dug into for
this priority feature. Seems to be having a moment right
now across the continent. Talk about maybe why you wanted
(01:35):
to dig into this and what sorts of holidays are
we talking about. It doesn't seem like your typical bed
and breakfast, are they?
Speaker 2 (01:45):
Well, Jen, I think bed and breakfast are perhaps the
bare minimum that some of these luxury retreats offer. One
of the reasons I wanted to dig into this topic
was just increasingly seeing and hearing about hotel developments popping
up around the continent. And on further investigation, you're right,
we did find that luxury tourism happens to be booming
(02:05):
in Africa right now. And let me tell you a
little bit about the kind of luxury holidays that are
on offer at this point. There are exclusive stays on
private islands and protected marine reserves that come complete with
the use of the Cat's Miran as well as helicopter transfers.
There are also vineyard stays, spa retreats, and ultra luxury
safaris and even you know once in a lifetime adventures
(02:28):
such as guerrilla trekking that offer rare encounters with wildlife.
Speaker 1 (02:34):
What sort of places are we finding these popping up?
And who are the main investors behind this, because this
doesn't seem as you were just mentioning there bed and
breakfast is the bare minimum, So it sounds like there's
quite a bit of capital that's gone into making these
as luxurious as possible.
Speaker 2 (02:50):
That's quite true, Jen, So our reporting shows that this
money is coming from all over the world and developments
are happening across the vast suites of the continent. South Africa,
of course, is one of the most mature markets of tourism,
together with Egypt and Morocco, and those are thriving markets.
We're also seeing lots of invested interest in East Africa
(03:11):
and also in West Africa, so it really is everything
coming together. Our reporting also shows that increasingly some of
this money is coming from private capital the world's top
hotel companies, royals and even billionaires. Our story highlighted Jamira Group,
which is part of the Dubai Rulers business Empire and
that operates the private Island. We just spoke about it a
(03:31):
bit earlier. There's also Richard Branson's ultra Luxury Virgin Limited Edition,
who have more than half of their retreats on this continent.
We also have some of the top American, European and
Asian hoteliers such as Hilton, Marriott, Club med and even
Baniantry expanding on the continent, and many local high network
(03:53):
individuals are also getting in on the action and increasingly
partnering with global brands to develop hotel in their home countries.
Speaker 1 (04:02):
Why now, Pernicia, Because as you and I know, these
places have been around for decades. Why is it that
some of these names you just mentioned who many people
are probably quite familiar with. What is the opportunity that
they're seeing now?
Speaker 2 (04:15):
I think that's twofold gen. So Africa is seen right
now is one of the last underpenetrated markets for travel
and tourism in the world. And then you get to
some of the continent's unique offerings. The nature based offerings
are drawing investors, especially after the pandemic, because wellness travel,
(04:36):
eco friendly escapes and bucket list experiences are at the
top of the list of new generation of post COVID travelers,
I would say.
Speaker 1 (04:47):
And it could potentially bring in opportunity for some of
these economies. Is that maybe part of the opportunity that
you know, some of these investors are seeing.
Speaker 2 (04:57):
Yes, of course, gen Globally, tourism accounts for about ten
percent of GDP, and in Africa only a fraction of
that is being realized. So investors are seeing potential there,
and they're also seeing travel and tourism as a potentially
important sector and catalyst for job creation, infrastructure development and
(05:17):
community upliftment around the continent. We've seen in reporting out
the story some of the retreats centered around unspoiled wilderness
and wildlife offerings, charged guests, conservation and community levees, and
part of which goes toward the upkeep of the environment,
protecting rare wildlife species, as well as community development projects
(05:39):
such as schools and clinics and education type initiatives.
Speaker 1 (05:44):
What's the reaction, Pernicia from the local communities is it
actually you know some of these initiatives that you talk about,
is are they seeing the benefits yet to it?
Speaker 2 (05:55):
In some senses, Jen, Yes, they are seeing the benefits
of the investments, especially when it comes to job creation
and training for jobs that would take place in some
of these ultra luxury hotels and resorts. In reporting out
the story, we found that at the very top end,
hotels and resorts employ at least four people per guest,
(06:17):
and so that just speaks to the amount of jobs
that the sector could create for the continent.
Speaker 1 (06:22):
And when we think about price point, Parnisha, what you're
describing ultra luxury, can you quantify that for us, especially
if we're talking about the correlation to job creation and such.
How much are some of these guests forking out for
these experiences.
Speaker 2 (06:38):
It depends on the experiences. There is an ultraluxury retreat
here in South Africa where guests can fork out as
much as about thirty thousand dollars per night, and that
is to be in the biggest wildlife park in the
country on safari. And then you have the private island
experience which is about fifty thousand dollars per night. So
(07:02):
it really does depend on the type of travel they're seeking.
Speaker 1 (07:06):
It seems like, as you were mentioning the most unpenetrated
market globally. But I wonder from an investment perspective, is
there any fear that potentially some of these you know,
to the clientele and the fifty thousand dollars a night,
is there a fear that potentially this could be short
lived and all of this investment may vanish as quickly
(07:28):
as it arrived.
Speaker 2 (07:29):
So, Jen, despite what seems like a sudden hyber activity,
our reporting shows that developers are taking quite a measured
approach and many are relying on data for decision making,
and some are even cautioning against overdevelopment because that would
destroy natural habitats. Our reporting sites a report by Deloitte
(07:51):
our Next Generation Travelers and Destinations that shows that Africa
and the Middle East are expected to have the highest
annual growth in bound arrivals through twenty twenty four. But
as you say, there are still some I suppose lingering fears,
and that is because it's very difficult to project revenue
(08:12):
for hotel developments across the content because they are so
seasonal and also cyclical depending on the economy. So that's
one of the reasons we see banks only partially fund
some development, and that's also why we're seeing private capital
increasingly stepping into full that void.
Speaker 1 (08:29):
And stay with us, Prinicia, when we come back we'll
take a look at what this investment means for the
rest of the tourism sector across Africa. We'll be right back.
Welcome back. Today, we're talking about the luxury hotel market
in Africa, which is seeing a huge growth in investment
right now, Paranishan I do is still with me so Parnisia.
(08:53):
As we've been talking about so far, it's been the
luxury and the high end market that's been getting the
bulk of the investment reporting. Do you think we'll start
to maybe see opportunities for the everyday tourists who maybe
can't fork out fifty thousand dollars? I mean, how is
this going to create benefits for tourists across the board
or is it not meant to?
Speaker 2 (09:14):
For now, we're seeing the bulk of investments in the
ultra luxury and a high end, especially in emerging cities,
because building often requires starting from absolute scratch. In some
cities to set up a hotel, hoteliers have to set
up all the basic back of office systems and services themselves.
(09:35):
These could include services such as bakeries, laundries, water treatment plants,
and backup power. So financially it makes more sense to
target the upper end of the market at this stage,
but with more and more developments in that end of
the market, the infrastructure is being built to support hotels
(09:56):
that would come up further down the line. We also
are expected to see and increase in developments of budget
and mid scale hotels throughout the continent. And that's because
of the rising middle class in Africa that's traveling for
both business and pleasure, and that they are mostly seeking
affordable hotels and well run hotels in many parts of
(10:18):
the continent, and we are seeing local and international brands
stepping up to meet this demand as well.
Speaker 1 (10:26):
What types of brands are you are we seeing? Is
it the Marriottes, the health Tends because we have actually,
you know, from a personal perspective, the more that I've
traveled across the continent, I have seen some of these
international brands penetrating economies that they hadn't before. Is that
sort of what you observed in your reporting.
Speaker 2 (10:45):
That's definitely it. There was a conference in Cape Town
that I attended last month where I think two hundred
and forty new hotel developments were announced across from the
budget all the way to upscale properties and brands like Hilton, Marriott,
Tui worse some of those that are expanding and Pernicia.
Speaker 1 (11:07):
I know you did. I mean for anybody who hasn't
been able to read your story, they definitely should. But
maybe you can illustrate a bit more the types of
holidays that you found. Fifty thousand dollars a night. I
can't even picture what that would include, but can you
give us sort of a sense of what you found,
because this is on another scale.
Speaker 2 (11:27):
So that fifty thousand dollars a night holiday would be
on the private island off the coast of Tanzania that
is set in a protected marine reserve. It comes with
the use of the cat'smaran and helicopter transfers and all
the bells and whistles. When it comes to luxury accommodation, importantly,
(11:47):
that would be fifty thousand dollars a night would be
the price to rent out the entire island for the
guest of their family.
Speaker 1 (11:54):
I see, were you able to go to any of
these in your reporting?
Speaker 2 (11:58):
I wish I did visit one thirteen thousand dollars a
night a hotel in Cape Town, which was absolutely beautiful.
It was situated on the heart of the VNA Waterfront
in Cape Town, which is the oldest working harbor in
South Africa, set against the backdrop of Table Mountain with
the harbor in the foreground, and just the architecture was
(12:22):
quite unique. The hotel was at well be part of
the hotel that I visited was at the i think
the top floor, and they had these amazing full length
windows and you could see out and was absolutely stunning
beautiful Cape Town Winter's day. And there was also really incredible,
(12:42):
unique and eclectic artwork throughout the hotel, so it really
had a personality. And I managed to speak to the
owner of the hotel during the course of reporting this project,
and she actually said that she picked out each and
every item across her hotel portfolios herself. Hopefully next time
(13:03):
I get to go to the Private Islands.
Speaker 1 (13:05):
It's fascinating and it's a really interesting space, especially when
you think about some of the economies that you were
focused in on. Parnisha, thank you so much for joining us,
really great reporting.
Speaker 2 (13:14):
Thank you very much, Jim.
Speaker 1 (13:16):
And you can read Prinicia's piece on Bloomberg Platforms. Now
we'll put a link to that in the show notes.
Here's some of the other stories from the region we've
been following this week. The partial collapse of a waste
dam at a Chinese state owned copper mine in Zambia
may have released thirty times more toxic sludge into the
(13:36):
environment than previously reported, according to an independent evaluation of
the disaster, and Bank of Ghana Governor Johnson Asiama urged
the nation's banks to increase private sector lending to support
economic growth. The move came as inflationsload to a more
than three year low of twelve point one percent in
(13:57):
July from twenty three point eight percent in December. And
you can follow these stories across Bloomberg platforms now, including
the Next African Newsletter. We'll put a link to that
in the show notes. This program was produced by Adrian
Bradley and tiwa Adebayo. Don't forget to follow and review
this show wherever you usually get your podcasts. I'm Jennifer's Abisaja.
(14:20):
Thanks as always for listening.
Bloomberg Audio Studios, podcasts, radio news. From fifty thousand dollars
a night villas on private islands to thirty thousand dollars
safari tracks. Investors are betting big on African tourism.
Speaker 2 (00:20):
They are only select numbers of camp on the African
continent that are considered to be ultra luxury.
Speaker 1 (00:26):
Welcome to the JW. Marriott Matthamira Lodge. Here in Kenyon. Billionaires,
tech moguls and Middle Eastern investors are all competing for
a share of a growing luxury tourism market. It's the
perfect place for families, for friends, and it's really your
own private marine reserve and a beautifully designed house. On
this week's Next Africa Podcast, we'll look at what's behind
(00:49):
the success of high end tourism in Africa, who are
the winners, and whether this growth could mean a much
needed source of revenue across the continent. I'm Jennifer's Abasajob
and this is the Next Africa Podcast, bringing you one
story each week from the continent driving the future of
global growth with the context only Bloomberg can provide. So
(01:14):
joining me to discuss this today is Bloomberg Reporter Parnisia
and I do. Prinisha, thanks so much for coming on
the podcast this week. I think it's your first time.
So luxury tourism is really what you dug into for
this priority feature. Seems to be having a moment right
now across the continent. Talk about maybe why you wanted
(01:35):
to dig into this and what sorts of holidays are
we talking about. It doesn't seem like your typical bed
and breakfast, are they?
Speaker 2 (01:45):
Well, Jen, I think bed and breakfast are perhaps the
bare minimum that some of these luxury retreats offer. One
of the reasons I wanted to dig into this topic
was just increasingly seeing and hearing about hotel developments popping
up around the continent. And on further investigation, you're right,
we did find that luxury tourism happens to be booming
(02:05):
in Africa right now. And let me tell you a
little bit about the kind of luxury holidays that are
on offer at this point. There are exclusive stays on
private islands and protected marine reserves that come complete with
the use of the Cat's Miran as well as helicopter transfers.
There are also vineyard stays, spa retreats, and ultra luxury
safaris and even you know once in a lifetime adventures
(02:28):
such as guerrilla trekking that offer rare encounters with wildlife.
Speaker 1 (02:34):
What sort of places are we finding these popping up?
And who are the main investors behind this, because this
doesn't seem as you were just mentioning there bed and
breakfast is the bare minimum, So it sounds like there's
quite a bit of capital that's gone into making these
as luxurious as possible.
Speaker 2 (02:50):
That's quite true, Jen, So our reporting shows that this
money is coming from all over the world and developments
are happening across the vast suites of the continent. South Africa,
of course, is one of the most mature markets of tourism,
together with Egypt and Morocco, and those are thriving markets.
We're also seeing lots of invested interest in East Africa
(03:11):
and also in West Africa, so it really is everything
coming together. Our reporting also shows that increasingly some of
this money is coming from private capital the world's top
hotel companies, royals and even billionaires. Our story highlighted Jamira Group,
which is part of the Dubai Rulers business Empire and
that operates the private Island. We just spoke about it a
(03:31):
bit earlier. There's also Richard Branson's ultra Luxury Virgin Limited Edition,
who have more than half of their retreats on this continent.
We also have some of the top American, European and
Asian hoteliers such as Hilton, Marriott, Club med and even
Baniantry expanding on the continent, and many local high network
(03:53):
individuals are also getting in on the action and increasingly
partnering with global brands to develop hotel in their home countries.
Speaker 1 (04:02):
Why now, Pernicia, Because as you and I know, these
places have been around for decades. Why is it that
some of these names you just mentioned who many people
are probably quite familiar with. What is the opportunity that
they're seeing now?
Speaker 2 (04:15):
I think that's twofold gen. So Africa is seen right
now is one of the last underpenetrated markets for travel
and tourism in the world. And then you get to
some of the continent's unique offerings. The nature based offerings
are drawing investors, especially after the pandemic, because wellness travel,
(04:36):
eco friendly escapes and bucket list experiences are at the
top of the list of new generation of post COVID travelers,
I would say.
Speaker 1 (04:47):
And it could potentially bring in opportunity for some of
these economies. Is that maybe part of the opportunity that
you know, some of these investors are seeing.
Speaker 2 (04:57):
Yes, of course, gen Globally, tourism accounts for about ten
percent of GDP, and in Africa only a fraction of
that is being realized. So investors are seeing potential there,
and they're also seeing travel and tourism as a potentially
important sector and catalyst for job creation, infrastructure development and
(05:17):
community upliftment around the continent. We've seen in reporting out
the story some of the retreats centered around unspoiled wilderness
and wildlife offerings, charged guests, conservation and community levees, and
part of which goes toward the upkeep of the environment,
protecting rare wildlife species, as well as community development projects
(05:39):
such as schools and clinics and education type initiatives.
Speaker 1 (05:44):
What's the reaction, Pernicia from the local communities is it
actually you know some of these initiatives that you talk about,
is are they seeing the benefits yet to it?
Speaker 2 (05:55):
In some senses, Jen, Yes, they are seeing the benefits
of the investments, especially when it comes to job creation
and training for jobs that would take place in some
of these ultra luxury hotels and resorts. In reporting out
the story, we found that at the very top end,
hotels and resorts employ at least four people per guest,
(06:17):
and so that just speaks to the amount of jobs
that the sector could create for the continent.
Speaker 1 (06:22):
And when we think about price point, Parnisha, what you're
describing ultra luxury, can you quantify that for us, especially
if we're talking about the correlation to job creation and such.
How much are some of these guests forking out for
these experiences.
Speaker 2 (06:38):
It depends on the experiences. There is an ultraluxury retreat
here in South Africa where guests can fork out as
much as about thirty thousand dollars per night, and that
is to be in the biggest wildlife park in the
country on safari. And then you have the private island
experience which is about fifty thousand dollars per night. So
(07:02):
it really does depend on the type of travel they're seeking.
Speaker 1 (07:06):
It seems like, as you were mentioning the most unpenetrated
market globally. But I wonder from an investment perspective, is
there any fear that potentially some of these you know,
to the clientele and the fifty thousand dollars a night,
is there a fear that potentially this could be short
lived and all of this investment may vanish as quickly
(07:28):
as it arrived.
Speaker 2 (07:29):
So, Jen, despite what seems like a sudden hyber activity,
our reporting shows that developers are taking quite a measured
approach and many are relying on data for decision making,
and some are even cautioning against overdevelopment because that would
destroy natural habitats. Our reporting sites a report by Deloitte
(07:51):
our Next Generation Travelers and Destinations that shows that Africa
and the Middle East are expected to have the highest
annual growth in bound arrivals through twenty twenty four. But
as you say, there are still some I suppose lingering fears,
and that is because it's very difficult to project revenue
(08:12):
for hotel developments across the content because they are so
seasonal and also cyclical depending on the economy. So that's
one of the reasons we see banks only partially fund
some development, and that's also why we're seeing private capital
increasingly stepping into full that void.
Speaker 1 (08:29):
And stay with us, Prinicia, when we come back we'll
take a look at what this investment means for the
rest of the tourism sector across Africa. We'll be right back.
Welcome back. Today, we're talking about the luxury hotel market
in Africa, which is seeing a huge growth in investment
right now, Paranishan I do is still with me so Parnisia.
(08:53):
As we've been talking about so far, it's been the
luxury and the high end market that's been getting the
bulk of the investment reporting. Do you think we'll start
to maybe see opportunities for the everyday tourists who maybe
can't fork out fifty thousand dollars? I mean, how is
this going to create benefits for tourists across the board
or is it not meant to?
Speaker 2 (09:14):
For now, we're seeing the bulk of investments in the
ultra luxury and a high end, especially in emerging cities,
because building often requires starting from absolute scratch. In some
cities to set up a hotel, hoteliers have to set
up all the basic back of office systems and services themselves.
(09:35):
These could include services such as bakeries, laundries, water treatment plants,
and backup power. So financially it makes more sense to
target the upper end of the market at this stage,
but with more and more developments in that end of
the market, the infrastructure is being built to support hotels
(09:56):
that would come up further down the line. We also
are expected to see and increase in developments of budget
and mid scale hotels throughout the continent. And that's because
of the rising middle class in Africa that's traveling for
both business and pleasure, and that they are mostly seeking
affordable hotels and well run hotels in many parts of
(10:18):
the continent, and we are seeing local and international brands
stepping up to meet this demand as well.
Speaker 1 (10:26):
What types of brands are you are we seeing? Is
it the Marriottes, the health Tends because we have actually,
you know, from a personal perspective, the more that I've
traveled across the continent, I have seen some of these
international brands penetrating economies that they hadn't before. Is that
sort of what you observed in your reporting.
Speaker 2 (10:45):
That's definitely it. There was a conference in Cape Town
that I attended last month where I think two hundred
and forty new hotel developments were announced across from the
budget all the way to upscale properties and brands like Hilton, Marriott,
Tui worse some of those that are expanding and Pernicia.
Speaker 1 (11:07):
I know you did. I mean for anybody who hasn't
been able to read your story, they definitely should. But
maybe you can illustrate a bit more the types of
holidays that you found. Fifty thousand dollars a night. I
can't even picture what that would include, but can you
give us sort of a sense of what you found,
because this is on another scale.
Speaker 2 (11:27):
So that fifty thousand dollars a night holiday would be
on the private island off the coast of Tanzania that
is set in a protected marine reserve. It comes with
the use of the cat'smaran and helicopter transfers and all
the bells and whistles. When it comes to luxury accommodation, importantly,
(11:47):
that would be fifty thousand dollars a night would be
the price to rent out the entire island for the
guest of their family.
Speaker 1 (11:54):
I see, were you able to go to any of
these in your reporting?
Speaker 2 (11:58):
I wish I did visit one thirteen thousand dollars a
night a hotel in Cape Town, which was absolutely beautiful.
It was situated on the heart of the VNA Waterfront
in Cape Town, which is the oldest working harbor in
South Africa, set against the backdrop of Table Mountain with
the harbor in the foreground, and just the architecture was
(12:22):
quite unique. The hotel was at well be part of
the hotel that I visited was at the i think
the top floor, and they had these amazing full length
windows and you could see out and was absolutely stunning
beautiful Cape Town Winter's day. And there was also really incredible,
(12:42):
unique and eclectic artwork throughout the hotel, so it really
had a personality. And I managed to speak to the
owner of the hotel during the course of reporting this project,
and she actually said that she picked out each and
every item across her hotel portfolios herself. Hopefully next time
(13:03):
I get to go to the Private Islands.
Speaker 1 (13:05):
It's fascinating and it's a really interesting space, especially when
you think about some of the economies that you were
focused in on. Parnisha, thank you so much for joining us,
really great reporting.
Speaker 2 (13:14):
Thank you very much, Jim.
Speaker 1 (13:16):
And you can read Prinicia's piece on Bloomberg Platforms. Now
we'll put a link to that in the show notes.
Here's some of the other stories from the region we've
been following this week. The partial collapse of a waste
dam at a Chinese state owned copper mine in Zambia
may have released thirty times more toxic sludge into the
(13:36):
environment than previously reported, according to an independent evaluation of
the disaster, and Bank of Ghana Governor Johnson Asiama urged
the nation's banks to increase private sector lending to support
economic growth. The move came as inflationsload to a more
than three year low of twelve point one percent in
(13:57):
July from twenty three point eight percent in December. And
you can follow these stories across Bloomberg platforms now, including
the Next African Newsletter. We'll put a link to that
in the show notes. This program was produced by Adrian
Bradley and tiwa Adebayo. Don't forget to follow and review
this show wherever you usually get your podcasts. I'm Jennifer's Abisaja.
(14:20):
Thanks as always for listening.
Host
Jennifer Zabasajja
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