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Rwanda rising with strong, new leadership

Twenty years ago, Rwanda’s war and genocide made global news. Today, the eastern African country of diverse geography and rich wildlife has among the strongest GDP in the world – from 2006-15, it averaged over 5%, according to Horwath HTL. As well, from 2010-15, tourism nearly doubled to 1.3 million, and it’s expected to grow even more with the new Kigali Convention Center, which has already hosted regional forums and continental summits. Trevor Ward, head of consultancy services at Hotel Partners Africa, talks about the country’s potential.

HOTELS: How has Rwanda turned itself around?

Trevor Ward: It was really down to strong leadership from President Paul Kagame – perhaps the sort of leader other African countries need – plus support from the international community, acknowledged to have done too little whilst the genocide was underway, making up for it. Kagame has, importantly, created an environment conducive to doing business, reportedly corruption-free, far less bureaucratic than other counties, and a nice place to be. Another factor is the support given to RwandAir, which provides the airlift essential to promote investment and tourism.

H: How is Rwanda differentiating itself?

TW: Rwanda can and does promote itself as a base for regional activities, with good air and OK road connections with the rest of the East African Community. Telecoms are good, in contrast with other countries, promoting the idea of itself as a hub.

H: What is the hotel market like?

TW: There are very many locally owned and operated hotels, but the chains have been there in the past, including InterContinental (now the Kigali Serena) and Novotel (now the Umubano). Both have left. Now there are Kempinski, Serena, Radisson Blu, Marriott and City Blue, with Golden Tulip, Park Inn and Sheraton all due to enter the Kigali market. Our research says there are at least another 1,200 rooms coming into the market in branded hotels. If the convention center lives up to expectations, there will be new business coming into the city, but general growth in the business market is needed to make them all viable.

H: Any obstacles to development?

TW: Almost always it is finance. Having said that, Rwanda is one of the few countries that can still merit the “Africa Rising” tag – it is not reliant on a single source of revenue (such as oil, iron ore, gold, etc.), and a growing, diversified economy generates growth in hotel demand, so Rwanda and other East African markets are more attractive for raising finance than many other countries here. Other challenges that typically face hotel developers are mostly dealt with by the government’s open-door attitude to investors – but Africa is never easy!

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