MARKET REPORT

Senegal: Tourism
and Hotel Market
Overview

JULY 2018
Senegal - Tourism & Hotel Market Overview Market Report - July 2018

General Environment
MAURITANIA
Senegal benefits from a strategic location on the West
coast of Africa bordering the North Atlantic Ocean,
and represents a gate-way to the landlocked Sahelian
countries. According to the United Nations projections, the
population of Senegal should reach 40 million by 2050,
Dakar
underlining a great potential of the domestic market.
MALI
SENEGAL

Political & Economic Environment

GAMBIA Abdoulaye Wade, the former President, ran the country
from 2000 - 2012 and amended Senegal’s Constitution
over a dozen times. However, in 2012 his decision to
GUINEA BISSAU run for a third presidential term triggered a large public
backlash resulting in a political changeover. Macky Sall
won the elections and has launched a serious of economic
Country Data Profile – 2017 and political measures well received by the population.
Size Sq Km: 196,722
Population: 15.7 Nevertheless, the current government like its predecessors
Demographic Growth (%): 2.9 is struggling to find a final solution to the resolution of the
Urban Areas >1million*: Dakar: 2.47 Casamance conflict with the separatist movement, which
Secondary Urban Areas makes difficult relations with Gambia on the south.
> 100,000: Pikine: 847,062
Touba: 529,176 However, little progress has been made through the
Thies: 320,000 release of two combatants of the Mouvement des
Saint-Louis: 176,000 Forces Démocratiques de Casamance (MFDC) early
Last/Next Elections: 2012/2019 January 2018 and the ongoing construction of a bridge
between Senegal and Gambia. Overall, Senegal remains
a model of democracy in the Sub-Saharan region.
Source: National Statistics and Demographics Agency of Senegal and
World population.net, 2018

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Senegal - Tourism & Hotel Market Overview Market Report - July 2018

Evolution of GDP and Inflation in Senegal (2013 - 2022) Large infrastructure and urbanization projects under the
ESP include:

• The Diamniadio urban pole (to ease up congestion in

Dakar, with more than 300,000 inhabitants expected
by 2020);
• The “Cité des Affaires de l’Afrique de l’Ouest”: aims at
transforming the former site of the LSS airport into a
military private airport and to develop its surroundings
with residential homes, commercial, financial,
administrative services, and multinational head offices;
• The creation of Dakar Integrated Special Economic
Zone (DISEZ, a logistic and industrial hub located near
(P): Projections the Blaise Diagne Airport).
Source: IMF and World Bank, 2017
Senegal faces a number of structural obstacles, such
Over recent years, Senegal’s economy has been marked as the relative lack of natural resources in relation to
by stability and low inflation. On the macroeconomic neighboring countries. And despite a challenging business
level, the country has experienced one of the highest environment as pointed out by the 140th rank in regard
growth rates among the UEMOA (Economic Union and of Doing Business 2018 Report, the country’s economy
West African Monetary) countries since 2015. remains resilient. Over the medium term, Senegal’s
economic growth prospects are positive. From 6.5% in
The government launched the Emerging Senegal Plan 2015, GDP is expected to reach 7.0% in 2018, sustained
(ESP) which aims at increasing the productivity of by the agricultural and industrial sectors. Volumes of
Senegal’s economy in strategic sectors (infrastructure, exports (phosphate, peanuts, and zircon) increased by
agriculture, mining and tourism), between 2014 and almost 15% in 2016, underpinned by a more diversified
2018, with an average of 7% growth and aiming at base in agriculture, fishing, and mining. In the long term,
positioning Senegal as an emerging economy by 2035. the country, which already exports refined petroleum
products, is expected to benefit from the discovery of
significant crude oil reserves. Production of the first barrels
should start by 2019-2020.

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Senegal - Tourism & Hotel Market Overview Market Report - July 2018

Air Access Tourism

The Leopold Sedar Senghor (LSS) airport was the country’s With an average contribution of 10% of GDP and 9%
main air access until its definitive closure in December of total employment in 2017, the tourism sector holds
2017. The structure served around 30 airlines that link a key role within the country’s economy. Senegal was
the country to Europe, North and West Africa with the the favorite destination in West Africa for a long time,
main airlines being Air France, Ethiopian Airlines, Emirates, especially in regard to seaside tourism, thanks to a
Royal Air Maroc and Turkish Airlines. Air traffic through LSS reasonable distance to European countries (main tourist
airport has been stable over the last three years, with an origins) with meaningless time zone difference, stable
annual average traffic of about 1.75 million passengers. In and safe environment, comfortable climate and a rich
2017, it was the second airport (after Abidjan) within the natural and cultural heritage (700 km of coastal beaches,
UEMOA space in terms of freight and air traffic, and the 6 National Parks, 7 UNESCO world heritage sites) and
sixth busiest airport in West Africa. qualitative accommodations.

Until 2017, LSS was the only West African airport with However the sector suffered from a lack of investment and
direct flights to the USA. This offer is now completed with dynamism during the 2000’s, as well as strong erosion
Abidjan’s airport since the first semester of 2018. along the Petite Côte. More recently, the sector seems to
The new Blaise Diagne Airport (BDIA) was inaugurated be recording a recovery consequently to a series of key
in December 2017. It is located 40 km in the south measures launched by the government in 2015 to boost
east of Dakar in Diass, offering an average capacity of the tourism sector (decrease of the passenger fees, waiving
5 million passengers per year. The development of this of the visa fee, new tourism national agency, etc.).
replacement airport, located outside the capital, is in line The authorities’ ambition is to place Senegal as part of
with the government’s ambition to take the load off the the top five touristic destinations in Africa with 3 million
road corridors of Dakar city-center and to improve the visitors per year by 2023.
accessibility to Saly, considered as an upcoming MICE
destination. Today, tourism sector in Senegal remains one of the most
diversified in the sub-region through:
In conjunction with the opening ceremony of the BDIA,
was held the inaugural flight of the new national airline • Business and MICE mainly concentrated in Dakar
called Air Sénégal SA (to replace Senegal Airlines). The first (the city hosts several international organizations and
commercial flights are expected by the end of 2018. companies’ headquarters) is extending towards two
secondary and complementary poles which include

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Senegal - Tourism & Hotel Market Overview Market Report - July 2018

Blaise Diagne International Airport/Diamniadio with Hotel Market

crew, transit, large conferences demand; and Saly For many decades, Senegal hotel offer was limited to
which is expected to evolve around a smaller MICE independent units of local standards and few branded
activity. hotels in Dakar, mainly owned by the government.
Today, and according to the Ministry of Tourism, the
• Leisure along the Petite Côte region, characterized by Senegalese hotel supply reaches approximately 250 units
seaside and nautical activities. La Somone and Saly, of which about 25% are concentrated in Dakar. The rest
the two historical poles promoted by tour-operators of the offer is to be found on the coastline destinations of
are now “ageing”. New poles are currently in Petite Côte. Main cities inside the country remain of poor
development and include Pointe Sarène and Nianing. quality standards.

• Culture and history around Dakar in the island of Dakar Hotel Market
Goree (slavery commemoration) and art events (Dakar Dakar, the economic capital, concentrates the majority of
Biennale of Contemporary African Art, etc.), historical Senegal’s wealth (Autonomous Port of Dakar) and offers
vestiges and festivals in Saint Louis and finally in Touba, important MICE activities due to multiple corporate &
the capital of Mourides (annual pilgrimage which banks headquarters, and public institutions implanted in
attracted an average of 2.5 million people in 2017). the district of Plateau.

• Nature and ecotourism mainly around Sine Saloum During the 2010-2011 crisis in Ivory Coast, Dakar
and La Casamance, however underexploited (Club benefited from the relocation of several international
Med being the only international brand in the region) companies and significant international events thus
due to political, security and accessibility issues. Other generating a need for quality international units. At the
sites of interest such as the Lampoul desert are to be same period, the hotel market registered successive
noted. openings starting with the current two leading units:
Terrou-Bi and Radisson Blu in 2009 (extended in 2014),
then the development of an economic supply including
Onomo in 2010, Ibis in 2012 and more recently Yaas in
2017. In reaction to this growing competition, the Accor
group renovated two of its historical units: Novotel in
2009 and Pullman in 2016.

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Senegal - Tourism & Hotel Market Overview Market Report - July 2018

Overall, the current reference hotel supply is well National Scale

structured and diversified. It amounts to 60 hotels for a The Petite Côte (70 km south of Dakar) represents
total capacity of around 3,640 rooms among which 44% the second hotel market, with a total of 1,800 rooms
representing 1,600 rooms are under international brand dominated by large holiday complexes and beachfront
management. It is to be noted that Dakar has developed a hotels. The overall performance remains positive, demand
parallel local supply, mainly positioned on the economic being mainly driven by leisure activities.
and midscale segment, an interesting offer however
marked by a level of services and capacity that remain However, the hotel market is experiencing difficulties
below the international offer. mainly due to erosion and outdated hotel units, thus
decreasing the average occupancy rate to about 65%.
Dakar Plateau-district remains the first hotel concentration Hotel groups and tour operators counterbalance this
pole of the city but recent and forthcoming openings tend negative impact with low priced packages and regular
to relocate around new areas (the Almadies and along the charter flights.
Corniche) that offer qualitative natural surroundings.
The Diamniadio-Blaise Diagne airport zone, is today in
In 2017, as per market data, the average occupancy of the development as illustrated by the opening in 2017 of a
reference market reached 75%, the highest performance 152-room unit under the Radisson brand. Other regions in
over the last five years thanks to an attractive significant the country are characterized by a limited offer, including
MICE demand and adequate infrastructures mainly small independent units and poorly maintained.
provided by hotels and completed by the International
Foreign Trade Centre of Senegal (CICES). Among this offer, should be noted a few exceptions like
Club Med Cap Skirring in La Casamance (205 rooms) and
ADR (exclusive of taxes) are estimated as follows: some units around the country positioned as boutique
• Upscale: 110 – 180 € hotels.
• Upper Midscale: 90 – 110 €
• Midscale: 70 – 90 €

Hotel demand predominantly originates from Africa

(39%), especially from ECOWAS countries and Europe
(36%).

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Senegal - Tourism & Hotel Market Overview Market Report - July 2018

Projects Prospects
In the short-term by 2019, Golden Tulip (118 rooms) will As one of the best performing economies in Sub-Saharan
enter the market (after the renovation of the historical Africa, Senegal growth is expected to maintain at high
Croix du Sud Hotel), Days Hotel & Suites (84 rooms) levels around 7% in 2018, sustained by the agricultural
under construction and the Hyatt Centric (150 rooms) in (fishing, peanuts) and industrial sectors (increase in
Plateau-district. phosphate and mining exports of 15%).

In the midterm, within five years, about 600 additional The development perspectives of future hotel demand are
rooms including Azalaï along the Corniche (202 rooms) mainly found in the business and leisure segments.
and the combo Sheraton/Aloft (397 rooms) in Almadies
will open in Dakar. Moreover, a second Club Med (359 Positive trends influencing on Senegal hotel market are
rooms), the largest upcoming seaside resort in West Africa summarized as follows:
is in development, along the Senegalese coast, in Nianing.
• A regional position as a main economic hub and
In the long term, several projects in the new airport area political stability which creates a favorable business
are expected in the pipeline. Many international and environment;
regional operators are currently under discussion with
owners and developers. • The improving access to the destination with the new
airport in Diass/Diamniadio;

• The authorities’ support to the tourism sector through

infrastructures programs under the Senegal Emerging
Plan;

• Increasing hotel performances of Dakar hotel market;

• A pipeline of internationally branded hotel projects

more adapted to international standards.

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Senegal - Tourism & Hotel Market Overview Market Report - July 2018

However the overall tourism sector will remain limited AUTHORS:

in the mid-term as long as the country has to face the
following challenges:
Charlotte Specht
• Durable solution to the conflict in La Casamance region Director
and terrorist threats from neighboring countries; Horwath HTL Ivory Coast
[email protected]
• Low standards of quality and services in the main cities
inside the country;

• High cost of reaching the destination compared to Charlotte joined Horwath HTL in 2013 and is in charge of
other seaside destinations in North Africa. the business development in West and Central Africa and
opened Horwath HTL’s regional office in 2016, based in
In this perspective, we are of the opinion that Senegal has Abidjan. Charlotte has specialized in Market and Feasibility
potential for diverse hotel development in the mid-term studies for hotel development in the region, from the
including: territorial analysis to the definition of the global concept
and its operating conditions. Her other business skills
• Midscale and economic hotels as well as apart-hotels include Due Diligence services, Appraisals and Hospitality
in Dakar, especially in Plateau, along the Corniche road Strategy.
and les Almadies;

• Midscale hotels adapted to MICE and leisure activities

in Petite Côte mainly in Pointe Sarène and Nianing; Catherine Dosso-Yovo
Consultant
• Economic hotels in secondary cities in Grande Côte Horwath HTL Ivory Coast
region (Saint Louis), La Casamance and the Saloum [email protected]
isles to capture unsatisfied nature and ecotourism
demand.

Catherine joined Horwath HTL in 2017, where she focuses

on hotel market and feasibility studies in the African
market. Graduated in 2017 from Sorbonne Pantheon
and ASSAS University with a Major in International and
Economic Law, Catherine is familiar with business law
and the African economy. With her additional Masters
in International Business, she has knowledge in project
management and market studies in China and Africa.

Horwath HTL Ivory Coast

7, Avenue Noguès
Abidjan Plateau 5th Floor
SCI Broadway (BSIC) Building
Abidjan 01 BP 5754, Ivory Coast
Tel: +225 20 30 49 71

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