Tourism Global Value Chains and Africa

The document analyzes the tourism global value chains (GVCs), distinguishing between leisure and business tourism. It identifies that in Africa, the 'package booking' channel is more durable than in other regions, but the dominance of global lead firms often leads to leakages and underdeveloped linkages with local industries. While business tourism is a significant driver and has fostered the growth of African travel management companies like Satguru, the leisure sector faces constraints such as low domestic demand and restrictive government policies. The paper suggests that upgrading the value chain requires improvements in infrastructure, skills training—noting a lack of certified schools beyond Kenya and Zambia—and the deregulation of air markets to support low-cost carriers.

• The leisure tourism global value chain is characterized by lead firms that package services into travel experiences, with the 'online package' channel seeing the most recent growth. In 2014, the top 10 distribution intermediaries accounted for 31% of an $821 billion industry, with Expedia and Priceline showing standout growth.
• African tourism value chains are distinct because the traditional 'package booking' channel is more durable there than elsewhere, and business tourism represents a larger share of overall receipts compared to other locations.
• The dominance of global lead firms based outside Africa, such as Wilderness Safaris, Cox & Kings, and Abercrombie & Kent, often results in underdeveloped linkages between tourism and supporting local industries due to foreign control over procurement and supply chain decisions.
• There is a significant shortage of certified skills training for the tourism sector in Africa, with only two certified schools: Utalii College in Kenya and the Hotel & Tourism Training Institute Trust in Zambia.
• The development of low-cost carriers (LCC) in Africa is hindered by several barriers, including the influence of state-owned carriers, restrictive bilateral agreements, poor air traffic control infrastructure, high fuel and airport taxes, and low tourism consumption.

APA

South African Institute of International Affairs (2019). Tourism Global Value Chains and Africa. https://saiia.org.za/saiia-toolkit/tourism-global-value-chains-and-africa-2/

Chicago

South African Institute of International Affairs. Tourism Global Value Chains and Africa. 2019. https://saiia.org.za/saiia-toolkit/tourism-global-value-chains-and-africa-2/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Tourism Global Value Chains and Africa |date=25 March 2019 |url=https://saiia.org.za/saiia-toolkit/tourism-global-value-chains-and-africa-2/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2019tourism, author = {{South African Institute of International Affairs}}, title = {{Tourism Global Value Chains and Africa}}, institution = {South African Institute of International Affairs}, year = {2019}, month = mar, url = {https://saiia.org.za/saiia-toolkit/tourism-global-value-chains-and-africa-2/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }