In the next five years: Mauritius’ hotel industry is set for steady growth

Driven by an increase in the number of foreign visitors from Europe and Asia-Pacific due to an increase in the number of flight seats and sustained promotions, a boom is expected in the hotel industry in Mauritius. This is what PwC predicts in its 6th edition Hotels Outlook 2016-2020 and Statistics Mauritius in its latest report titled International Travel and Tourism. 

According to PwC’s publication, revenue from hotel room accommodation in Mauritius rose by  6.7% in 2015 to € 557 million (Rs 22 billion), reflecting an increase in stay unit nights, by far the largest gain during the past five years, as the hotel market benefited from the large increase in foreign arrivals. Overall, hotel room revenue is projected to expand at a 10.6% compound annual rate to € 920 million (Rs 36.4 billion) in 2020.

111 hotels in operation

It should be noted that as at end of June 2016, there were 116 licensed hotels of which 111 were in operation and 5 were temporarily closed due to renovation works. The total room capacity of these 111 hotels was 13,092 with 27,523 bed places. During the first semester of 2016, the room occupancy rate of all licensed hotels in operation averaged 70%, up from 67% in the first semester of 2015. Out of the 111 hotels, 54 ‘large’ hotels (i.e., well-established beach hotels with more than 80 rooms) were in operation; they had a total room capacity of 9,963 with 21,105 bed places. These hotels represent 49% of all licensed hotels in operation but make up 76% of total room capacity and 77% of total bed places. During the first semester of 2016, the room occupancy rate of large hotels was 73% up from 69% in the first semester of 2015.

PwC projects that the number of available hotel rooms will increase at 2.8% compound annual rate (15,600) in 2020. Total room revenue for five-star hotels will increase by a projected 12.5% compounded annually to € 491 million. It is expected that the stay unit nights will also increase by 5.5% compound annual rate over the next five years as foreign tourism grows.

Airline seats grew by 7.4% year on year

The number of tourist arrivals to Mauritius increased by 10.9% in 2015. For the first five months of 2016, the number of airline seats grew by 7.4% year on year in line with the growth of 10% in tourist arrivals. Europe remains the main source of visitors to Mauritius (55%), with France leading the way. Russia fell by 13.9%, while the next-largest source of tourists come from Africa (25%), led by Reunion. Double-digit increases were also recorded in visitors from the United Arab Emirates, Saudi Arabia, Indonesia and the Philippines, while arrivals from the Americas rose by 8.4% (mainly USA and Canada).

Latest travellers’ trends 

In the first semester of 2016, 18 cruise ships arrived in the country and carried some 31,205 cruise travellers which include 11,087 tourists, 10,156 excursionists, 265 Mauritian residents and 9,697 crew members. Cruise tourism is therefore being observed as the latest traveller trend with 20,000 cruise tourists from around the world visiting the country last year. Sports tourism is also growing extensively in the country, as many renowned tournaments of golf, tennis and rugby take place throughout the year. Film tourism has witnessed a growth in the recent past in Mauritius and this year 35% of Mauritius tourism budget is geared toward promoting film tourism in the country.

Forecast of Rs 56 billion

Based on latest available data on tourist arrivals and information gathered from stakeholders, the forecast of tourist arrivals for the year 2016 is revised upwards from 1,240,000 to 1,250,000. This represents an increase of 8.6% over the figure of 1,151,252 in 2015. As a result of the revised forecast of tourist arrivals and based on trends for the first semester of 2016, the Bank of Mauritius is expecting tourism earnings for the year 2016 to reach Rs 56 billion instead of Rs 55 billion forecasted earlier. This revised figure represents an increase of 11.6% over the Rs 50.2 billion for 2015.

Nicolas Vaudin, the Hospitality Industry specialist at PwC Mauritius

“Sustained marketing efforts lead to an increase in number of Chinese visitors”

According to the Hospitality Industry specialist at PwC Mauritius, Nicolas Vaudin who is also a contributor of the publication, the continued and sustained marketing efforts and promotions by Air Mauritius and the tourism authorities, with the support of hotels on the island, have contributed significantly to the increase in visitors from China in 2015.  “We expect the global economy to be a major influence, as Mauritius relies mainly on foreign leisure travellers,” he says. 

Kevin Ramkaloan, Director of MTPA

“We are targeting 100,000 Indian visitors by 2017”  

In an effort to promote Mauritius in India, the Mauritius Tourism Promotion Authority (MTPA) organised ‘Wedding Planners and Travel Trade Show’ in Mumbai this week. The roadshow was headed by Kevin Ramkaloan, Director of MTPA, who led the delegation of 30 suppliers which comprised of Hotels, DMCs and other travel trade related companies. “We are directing our efforts towards spreading awareness about Mauritius as a preferred destination in the Indian market. In the first six months of 2016, we have observed a 20% growth in Indian arrivals and India is among the fast growing tourist markets for Mauritius. We have set a target of welcoming 100,000 Indians by 2017,” says Ramkaloan. MTPA is targeting cities like New Delhi, Bengaluru, Chennai, among others, to promote Mauritius as a preferred destination. The segments which MTPA is focusing on are free individual travellers (FITs), wedding travellers and honeymooners. “Mauritius is a round the year travel destination which offers luxury, adventure and culture. It is suitable as a family destination, weddings and for individual travellers who love to explore. Our small island nation satisfies every traveller’s needs,” added Ramkaloan.