News

Luxury Tourism in Africa: Minimal Gains for Local Communities

Luxury Tourism in Africa: Minimal Gains for Local Communities
Thursday, 21 August 2025 09:21

• Most luxury tourism profits in Africa flow to foreign investors, bypassing local economies.
• Africa's luxury travel market grows fast, driven by exclusive lodges and eco-friendly adventures.
• Calls grow for sustainable tourism policies that benefit communities and reduce inequality.

Many African countries push luxury tourism as a key growth driver. A University of Manchester study, however, shows most revenue escapes local economies.

In recent years, Africa has attracted wealthy travelers seeking discreet luxury and tailor-made adventure. The World Travel & Tourism Council (WTTC) reports a sharp rise in spending per visitor, making Africa a top fast-growing destination for high-end tourism.

This rise gained international recognition. Travel + Leisure’s World’s Best Awards 2023 ranked seven African hotels among the world’s top 25, including venues in South Africa, Kenya, and Morocco. Kenya’s Angama Mara lodge topped the list in 2021.

From Kenya to South Africa, Tanzania to Mauritius, investors pour money into turning unique natural sites into playgrounds for the rich. Rwanda’s mountain gorillas and Zambia’s wild landscapes now draw exclusive hotel developers targeting clients seeking rare experiences.

Wellness and eco-responsible travel fuel this trend. Safaris in Serengeti, private beaches in Seychelles, and luxury ecolodges in protected reserves match a global demand for nature-based, sustainable holidays. Tourism accounts for nearly 10% of world GDP, with luxury tours emerging as a fresh growth engine for African economies.

But a recent article in African Studies Review reveals a harsh reality. High-end resorts and ecolodges mostly belong to foreign owners. They hire few local workers and rely on imported goods and international agencies whose profits leave Africa. Thus, value created largely flows out, despite government hopes that tourism would boost local development.

The paradox is clear. Luxury tourism creates jobs—in construction, hospitality, retail, and services—yet deepens inequality. Profits concentrate with international operators or a small local elite. Meanwhile, most tourism workers earn low wages.

Experts urge putting sustainability at the core of Africa’s tourism strategy. Travel and Tour World stresses that luxury tourism can grow without harming people and land. Governments must focus on protecting communities from land grabbing and ensuring fair sharing of tourism revenues.

This article was initially published in French by Olivier de Souza

Edited in English by Ange Jason Quenum

 

On the same topic
African startup M&A hits record 67 deals in 2025 Consolidation driven by funding pressures and expansion strategies Fintech leads deals as “Big Four”...
S&P rated Africa Finance Corporation A/A-1 with positive outlook Strong risk management, low NPLs support infrastructure-focused...
Glencore issued 2026 copper guidance, withheld cobalt forecast amid uncertainty DRC cobalt exports constrained by quotas, copper production...
The World Bank is preparing a $250 million grant-funded project to support SME financing in Niger. The project aligns with Niger’s national...
Most Read
01

Except for Tunisia entering the Top 10 at Libya’s expense, and Morocco moving up to sixth ahead of A...

Global Firepower Index 2026: Egypt, Algeria, Nigeria Lead Africa's Military Rankings
02

Circular migration is based on structured, value-added mobility between countries of origin and host...

Circular migration as a lever to turn Africa’s student exodus into value
03

BRVM listed the bonds of the FCTC Sonabhy 8.1% 2025–2031, marking Burkina Faso’s first securitiz...

BRVM Lists Burkina Faso’s First Securitization Fund Bonds
04

CBE introduced CBE Connect in partnership with fintech StarPay. The platform enables cross-border...

Ethiopia’s CBE launches digital platform to channel diaspora remittances
05

President Tinubu approved incentives limited to the Bonga South West oil project. The project tar...

Nigeria approves targeted incentives to speed up Shell’s Bonga South West project
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.