Tourism Sector
Tucked away on the Atlantic ocean, Sierra Leone is a splendid combination of 570 km of beautiful white sand beaches, vibrant tropical forests teaming with exotic wildlife and breathtaking mountains that serve as the backdrop to what is an extremely unique tourist experience in West Africa. Sierra Leone is only 6 hours away from Europe, 8 hours from the US and 3 hours from West Africa’s largest city, Lagos. There
are endless possibilities in the tourism sector given the diverse
ecology of Sierra Leone, proximity to international hubs and an untapped
natural beauty that can rival any location in the world.
Some of the world’s endangered species of monkeys, baboons, birds, butterflies, pygmy hippos and a variety of antelopes and buffalo families can be found in the tropical forests. The temperate weather is ideal for swimming and other water sports along the established beach areas that are mainly being run and developed by local communities. Sierra Leone is also considered the premier location for sport fishing with record setting tarpon catches. It is also a hiker’s paradise with gorgeous mountain ranges like Bintumani. Furthermore, the country offers visitors its historic heritage and is a site for cultural tourism as many African Americans can trace their roots back to Sierra Leone including well known celebrities like Issiah Washington. Sierra
Leone’s greatest asset is its warm and friendly people that are the
true representation of the laid back feel of this West African gem.
Possible areas of investment include:
i) Establishment of hotels along the beaches and other eco-tourism locations across the country
ii) Establishment of hotels and guest houses in District headquarter towns to serve the growing private sector demands for better quality rooms, conference accommodations, etc
iii) Promotion of cultural tourism (ROOTS Tourism ) for the African American Diaspora and others interested in this sub sector
Overview of the Sector
The tourism sector is one of the
fastest growing sectors in the world. It generates almost US$ 4
trillion dollars annual and represents about 10% of the World GDP. Globally, this sector employs over 230 million people. Sierra
Leone is poised to become a major player in global tourism and is
expected to be competitive with other popular tourist hot spots in
Africa such as Gambia and Seychelles given the plethora of sites and
activities that can be enjoyed by visitors.
Figure 1: Sector Contributions by Countries
Sierra Leone’s tourism sector has been growing steadily with revenue growth of 10% in 2011 and it is expected to increase to 20% in the next 5 years. The number of first time visitors is also on the rise. Between 2010 to 2012, there was a 19.7% increase in visitors to Sierra Leone for holiday, business, conference or visiting friends and family. The sector has benefited from serious policy reform by the Government to engender investment and growth. These reforms include:
i) the development of new incentives for investors who want to invest in the sector;
ii) target tourism product and marketing development around the Western Peninsula,;
iii) further review and upgrading of regulations to ensure a more competitive edge;
iv) and capacity building of key Government institutions related to tourism to improve service delivery.
Investment in this sector has
typically been driven by domestic entrepreneurs in hotels and
guesthouses in the capital city of Freetown and other district
headquarters as a response to the boom in the mineral sector; however,
much investment has not gone into accommodations for eco-tourism which
is an important sub-sector. There are lucrative prospects across the
country to promote eco-tourism not only in the beach areas but the
tropical forests.
There are significant
commitments from private sector partners for the rehabilitation and
reconstruction of existing hotels, as well as the construction of new
large scale hotels in the capital city. The demand for rooms versus the supply is mismatched.
In
2012, the demand for business and conference rooms was about 115,094
and the available supply was a paltry 49,275. The demand for Class 1
rated rooms in 2009 was 113, 679, and there was a gap of over 80,000 in
unmet demand. Even through Class 1 rated hotels have increased from 105 to the present number of 135, it is still not enough to meet the market demans.
Further investments have been
made by the Government to upgrade the airport infrastructure, expanding
arrival facilities and improving security especially in the handling of
baggage.
Unique Selling Points
Market readiness
Several large chains and other investors have already entered the Sierra Leonean market based on the projections for growth in the sector. Some of these players include:
Hilton: through
a UK based firm, IDEA-UK, the Hilton is reviving Cape Sierra Hotel. It
is a 200- bedroom hotel with an estimated investment value of US $ 47
million.
Radisson Bleu: this is a joint venture between US private equity investor and the National Pension fund of Sierra Leone (NASSIT) to rehabilitate and operate the Radisson Mammy Yoko.
Savoy Hotels:
is an African hotel management group owning and managing hotels in
South Africa. The company has partnered with Sam-King Group in Sierra
Leone to operate and expand the Taia Resort Hotel in Freetown.
Brookfields Hotel: this
is a state owned hotel with 100 rooms. Government envisions that it
will upgraded to a 3 star facility and also serve as a training
institute for the Tourism and Hospitality sector.
Konakridee (MAPE Project):
A beautiful resort environment with a variety of recreational
activities. Located close to the Lungi International Airport, the
project will include a beach hotel (such as villas and chalets),
presidential accommodation etc
Eco Tourism
Outamba Kilimi National Park: The
main Ecotourism attraction in the Northern Province is Outamba-kilimi
National Park. A mixture of Savannah and jungle, the Park is found in
the northeast of Kamakwie in the Bombali District. It is a magical place
embedded between two rivers, the Great Scarcies, and the Mongo Rivers.
It is home to elephants, hippos, leopards and other primates.
Tacugama Chimpanzee Sanctuary: this outfit is locally owned and operated as a home for rescued chimps before they are released into the wild.
Tiwai Island Wildlife Resort: Tiwai is a
unique rainforest island where visitors can camp in prepared tents
surrounded by an evergreen forest and the sounds of horn-bills and
monkeys calling from the canopies woke you up in the early hours of the
morning. With 11 species of primates, over 135 different bird species, and it is home to the rare pygmy hippo.
Shebro Islands: this is one of the premier locations for Sport fishing of Tarpons and other exotic sea animals.
Gola Forest: it is known as Sierra
Leone’s green diamond. Some 40km east of Kenema is the Gola Rainforest
National Park, officially opened in 2010 and only Sierra Leone’s second
national park. This park can boast of exotic flora and fauna and wildlife and is one of the few protected parks in the sub-region.
Breathtaking Beaches
River No 2 Beach: a stunning white sand beach that feeds into river is one of the most beautiful sites in Sierra Leone. Development and use of the beach facility is currently being run by the community.
Lakka Beach: this beach is very close to Freetown and it is great location for business retreats and conferences.
Tokeh Beach: this is an ideal location for beach resorts given its picturesque sea front views and accessibility for development.
Cultural Tourism
Bunce Island: this
is the location of the slave castle built in the 17th century that was
used as a collection point for slaves going to Europe and the Americas.
Many African Americans can trace their roots to this site.
Freetown: home of the freed slaves, it was founded in 1789. Freetown today has an interesting mix of different heritages from across West Africa and Sierra Leone itself. Some of its monuments that can be trace back many years such as Old Fourah Bay College ( the first University in Sub-Saharan Africa) and Old Warf Steps also known as Freedom steps which is where the first freed slaves stepped
foot on Sierra Leonean soil. Further, there is a vibrant night life
that many visitors enjoy mostly located around the beach areas.
Investment Opportunities
Existing Opportunities
Tokeh Sand Beach Resort
· This
project is an existing resort on over 2-acres of land. They are
building about 50 bungalows with full amenities such as a spa and gym
for high end tourists. There are opportunities for investment partners
to expand the project to feed growing demand.
Eden Park Resort
This facility is already operational and sits on 5 acres of prime beach front property in Mamah Beach. The investors are looking to expand the facilities through a joint partnership to meet international standards and growing demand and it is expected to cost approximately US $1 1.7 million.
New Opportunities
· Business Hotels:
there is a growing demand for business class hotels. Currently, the
demand is not being met and in 2012 alone, there was an unmet demand by corporate visitors to the tune of 180,000 room nights or 493 rooms.
· Recreational Hotels and Resorts: Projections indicate that the tourism sector is expected to boom in Sierra Leone and its contribution to the GDP which was about 6% in 2012 is expected to remain at this high based on the increased amount of visitors coming to Sierra Leone and their spending capacity. In an effort to pre-empt the boom and ensure market positioning, this is a good period to invest in non-business recreational facilities especially for group tourism.
· Middle level Hotels and Motels: with
the growth of the mining sector in Sierra Leone there is an increased
need for accommodation for expatriates coming into the country on short
term assignments. These types of
accommodations will serve the market outside of Freetown which is where
most of the mining activities are taking place.
· Tour Package Operations: this concept will allow for investors to take the hassle out of travelling which is a major hindrance for Sierra Leone as a tourist destination by integrating airline travel,
inland transportation, accommodation, activities and insurance in one
package. There are local partners trying to operate in this space and
are looking for strategic international partners with the financial and
technical capacity to break open this market. Furthermore, these
packages could feature ROOTS tourism deals which is a major pull factor
in Sierra Leone and a unique experience given that many of the heritage sites have been well preserved.
· Golfing Facilities: there
are opportunities based on preliminary market feasibility studies in
operating golfing facilities in Sierra Leone. The studies showed that
6,000 travelers from Scandinavian countries would be willing to golf in
Sierra Leone due to complementary sunlight. Furthermore,
there are opportunities for hosting regional golf competitions that can
be coincide with National cultural events such as the Lantern Parade in
April and the Madengn Festival in December.
· Water Sports Facilities: a
beautiful coastline provides the opportunity for a host of water sports
during the dry season such as boating, jet skiing, fishing, etc.
Investment Incentives
The following investment
incentives listed below apply to investments that involve construction,
extension, restoration or renovation of a hotel or tourist facility;
with a minimum of 50 en-suite bedrooms in the Western Area or 10 en-suite bedrooms in any other part of the country.
1) 5 years exemption from corporate tax, limited to 150 percent of eligible expenditures of the original capital invested
2) Duty free for new construction, extension or
renovation of existing tourism related facilities ; applicable to
building materials, machinery, or equipment that is not easily available
in Sierra Leone
3) Exemption from payroll taxes for 3 years for up to six non-citizen employees with skills not available in the country.
4) 125% deduction on tourism promotion expense internationally
5) Business may import competent expatriates
