Investments Opportunities Comesa Tourism Raju Jaddoo

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Investment Opportunities in COMESA Region: Tourism Sector

Exploring the Mauritian Case &

Potential for the COMESA Region

Mr Raju Jaddoo, Managing Director, Board of InvestmentNovember 2008

www.investmauritius.comAgenda

� Mauritius: Economic Development, Investments & Tourism

� New Developments in Hospitality industry: Anahita Case study

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� Country Endowments: A powerful COMESA Region offering

� Challenges for regional tourism development

� Way forward – Investments, Growth & Hospitality

www.investmauritius.comMauritius Development & Tourism

2,200

GDP Market

Price (US$ M)

1980s: EPZ Textile boom

1980s: Hospitality: 100,000 tourists

1990s: India DTA & Global Business

2000: ITES/BPO & Freeport6,000

Year Hotel Tourist

1970 20 30,000

1980 43 100,000

1990 88 400,000

Tourism Facts & Figures

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Political StabilityDemocracy

1975

400

2,200

Bilingual Competitive Talents

1980s: EPZ Textile boom

1970s: Sugar Protocol

1980 1985 1990 1995 2000 2005

1990 88 400,000

2006 103 800,000

2007 102 906,971

Tourism Expenditure

1990: USD 350 – 400 Million p.a

2005: USD 1.5 Billion p.a

www.investmauritius.comAdjusting to External Shocks

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Ripple effect of Oil Shock

Downward

pressure on real

GDP growth

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05101520253035

70 75 80 85 90 95 0 5 6 8

US cts/Pound

End of preferential Sugar Protocol

Competition on Textile exports (China)

1975

GDP (US$ M)

1980 1985 1990 1995 2000 20050

200

400

600

800

1000

1200

1976 1980 1985 1990 1995 2000 2005

Sugar Protocol preferential price

US$ 519/T in 2008

World sugar price

EPZ Exports (US$ M)

www.investmauritius.comThe Mauritian Economic Transition

Post 2006

GDP Market

Price (US$ M)

Downward

pressure on real

GDP growth

8,600*

5

1975 1980 1985 1990 1995 2000 2005 2008

Source: Historical Series -National Accounts_CSO (* estimates)

2006

Reforms to bring growth on track:

� Ease of doing business

� Broadening circle of opportunities in the

Hospitality Industry: IRS, Medical Tourism,…

www.investmauritius.comIntegrated Resort Scheme

� Using Recurrent Clients and Mauritian Brand Name to broaden the Hospitality base

� Integrating the Hotel and Villa concept into beachfront properties: leasehold land for hotels and freehold land for villas

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leasehold land for hotels and freehold land for villas

� Integration of IRS villa owners into the Mauritian landscape, resilience to the current difficult credit market situation

www.investmauritius.comNew Developments in Hospitality

industry

Case Study:

Anahita World Class

Sanctuary

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www.investmauritius.comOverview

� Anahita World Class Sanctuary project:

� Development of a luxury Four Seasons Resort

� 45 world class luxurious Four Seasons branded villas

� 325 luxury private residences comprising of 70 waterfront residences,

200 estate villas, 15 golf villas and 40 golf lodges and

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200 estate villas, 15 golf villas and 40 golf lodges and

� An 18-hole, par 72 championship Ernie Els signature golf course.

� The development is being carried out over 213 ha of land with a unique 6 km sea frontage.

www.investmauritius.comGoals

� Investment: MUR 15 Billion

� Expected Job Creation: 1500 long term jobs

� Corporate Social Responsibility MUR 66 Million (approx. USD 2M)

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� Employability: Educate unemployed

� Youth Development Programmes

� Special school for Disabled Children

� Rehabilitation of socially marginaised ‘Street’ Children

� Economic empowerment

� Assistance for setting up new small enterprises

� Environment Protection

www.investmauritius.comDelivery

� Different permits,

licenses & clearances

obtained in 2006

� Phase 1 & Phase 2

implemented

Project

Identification

Project

Structuring

Project

Implementation

� IRS Certificate issued

in 2005 by BOI

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obtained in 2006

facilitated by BOI

� Anahita Fishermen

Solidarity Fund as

compensation for the

fishermen

� Phase 3 launched

in Nov 2008

� Phase 4 to be

initiated in 2009

The Anahita Case Study: A Win / Win Equation

www.investmauritius.comCountry Endowments

Mauritius

� Mauritius, a remote location within the Indian Ocean

� Sea Frontage: 177 km

� From remote to Exclusive

� From Sun, Sand & Sea to an Emotional Experience

� Branding Mauritius: Holistic approach to hospitality, investment & trade

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� Branding Mauritius: Holistic approach to hospitality, investment & trade

Soft Assets

� People

� Multilingualism & Cultural compatibility

� Ease of doing business / reforms

� Safety & Political Stability

� Infrastructure

� …

www.investmauritius.comCountry Endowments

COMESA Region

� Sea Frontage: A total of approx. 13,993 km

� Extraordinary Array of Stunning Natural Resources:

� Natural Park

� Desert

� Mountains

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� Mountains

� Safaris

� Deep Sea

Vantage Points:

� Cross selling opportunities: Crowd Pullers

(Kenya Safari / Egypt, …) & New Explorations

� Large number of flagship hotel brands present in

the region: Hilton, Sheraton, Inter-Continental, Four

Seasons, Taj, Movenpick,, Oberoi, …

www.investmauritius.comCOMESA Region

Egypt & Historical Tourism

� One of the most tourist attractive countries in Africa, attracting millions of tourists a year. In 2007, Egypt attracted about 9.8 million tourists.

� The country is strong in Pyramids, Desert and Beaches

131313

www.investmauritius.com

Masai Mara Game Park

Dubbed one of the 7 New wonders of the

world, the annual Migration is a natural

cycle that replenishes and renews the

grasslands of East Africa. Around 1.3

million Wildbeast migrate

COMESA Region

Kenya & Safaris

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Uganda & Eco-Tourism

� Tourism – 9.2 % of GDP

� Unique untapped potential – ecotourism, bird life

� Snow capped Ruwenzori mountains – most challenging of African mountains by hikers

� Queen Elizabeth National Park - 100 mammals species and more than 600 bird species

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than 600 bird species


Madagascar & Endemic Species

� Tourism - 7.8% GDP Contribution

� 80% of UNIQUE endemic flora and fauna species

� Madagascar is a world leader in the development and implementation of environmental best-practice

� Ambition to become leader in high-quality ecotourism in Sub-Saharan Africa & Indian Ocean

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Saharan Africa & Indian Ocean


Projecting Tourist Growth

� COMESA tourism in 2004/2005:

� Approx. 17.7 M tourists visited the region

� Tourism industry contribution: USD 9,855 M

� Projections 2015?

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� Projections 2015?

� Linear v/s Exponential

� Things as usual v/s Paradigm Shift

Vantage Points:

� Mauritius will double its number of tourists to

2 million p.a by 2015.

� Investments in infrastructure, airport facilities,

branding…


Key Challenges

� Improve security for visitors

� Improve existing infrastructure & facilities

� Improve air connections: inter–COMESA & target markets

� Increase market awareness of the regional product & diversify offerings (cross-selling opportunities)

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offerings (cross-selling opportunities)

� Broaden circle of opportunities: IRS / Medical Tourism / …

� Improve Doing Business in COMESA (DB World Bank Survey)

� Increase inter-regional investments: low compared to non-COMESA FDI

www.investmauritius.comOpportunities From World Cup 2010

� One million tourists expected in South Africa for the 2010 World Cup to be

held from 11 June to 11 July 2010

� Opportunities for COMESA countries:

� Devising special packages for Tourists & World Cup Fan Base

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� Devising special packages for Tourists & World Cup Fan Base

� Taking advantage of global media attention to promote tourism

� Positioning COMESA countries over the long-term on the world tourist map

www.investmauritius.comConcluding remarks

� Benefits of a thriving tourist industry for COMESA region

� Increase GDP/ Income per capita

� Increase job creation

� Increase investment

� Broaden / build economic base

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Concluding Remarks:

� The COMESA region has highly desirable and unique offerings

� The region has investors in the form of the most renowned international

hotel chains

� There are new opportunities in the Hospitality industry

� Cross-selling & market awareness will get us forward

� A paradigm change in the way we look at Hospitality in the COMESA

region can result in exponential GROWTH


Thank you

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Investments Opportunities Comesa Tourism Raju Jaddoo

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