Transcription

MARKET REPORTSenegalDECEMBER 2018

SenegalMarket Report - December 20182017 Country Data ProfileNevertheless, like its predecessors, the current governmentis struggling to find a solution to the Casamance conflictwith the separatist movement, straining relationshipswith Gambia to the south. Some progress has been madethough, firstly by the release of two soldiers from theMouvement des Forces Démocratiques de Casamance(MFDC)in early January 2018, and the ongoing constructionof a bridge between Senegal and Gambia.In recent years, Senegal’s economy has been marked bystability and low inflation, including monetary stability dueto euro parity for the CFA franc. On the macroeconomiclevel, since 2015, the country has experienced one of thehighest growth rates among the UEMOA (Economic Unionand West African Monetary) countries.Data Profile 2017Size (sq km)200.000Population (million)16Demographic growth (%)3Urban areas 1 Million*Dakar: 2.5Pikine: 900,00(adjoining Dakar)Secondary urban areas 100 thousand*Touba: 500,000Thiès: 300,000Saint-Louis: 200,000Last/Next presidentialelections2012 / 2019*ANSD Projections 2018Source: Agence National de Statisque et de la Démographie-SénégalGeneral EnvironmentSenegal benefits from a strategic location on the Westcoast of Africa bordering the North Atlantic Ocean, andrepresents a gate-way to the landlocked Sahelian countries.According to United Nations projections, the population ofSenegal should reach 40 million by 2050, underlining thegreat potential for the domestic market.Political & Economic EnvironmentIn 2012, Macky Sall, the current president won theelection. He has launched a series of economic and politicalmeasures, generally well received by the local population.www.horwathhtl.comEvolution of GDP and inflation in Senegal from 2013 to 20228.0%7.0%6.0%5.0%4.0%3.0%2.0%1.0%0.0%-1.0%2013 2014 2015 2016 2017 2018 2019 2020 2021 2022(p)(p)(p)(p)(p)GDPInflation(P): Projections Source: IMF and World Bank, 20172

SenegalMarket Report - December 2018The government launched the Emerging Senegal Plan (ESP)which aims at increasing the productivity of Senegal’seconomy in strategic sectors (infrastructure, agriculture,mining and tourism), between 2014 and 2018, with anaverage of 7% growth and the goal to position Senegal asan emerging economy by 2035. Large infrastructure andurbanization projects under the ESP include:However, the country faces a number of structuralobstacles, such as the relative lack of natural resources inrelation to neighbouring countries. Despite a challengingbusiness environment as shown by placing 140th in the‘Doing Business 2018’ report, the country’s economyremains resilient. The Diamniadio urban pole: a new town built to easeup congestion in Dakar, including relocation of certainMinistries and public institutions, with more than 300000 inhabitants expected by 2020; The “West Africa Business Centre”: aims at transformingthe former site of the LSS airport into a military airportand aerodrome, and to develop its surroundings withresidential homes, commercial, financial, administrativeservices and multinational head offices; The creation of Dakar Integrated Special Economic Zone(DISEZ, a logistic and industrial hub located near theBlaise Diagne Airport).www.horwathhtl.comOver the medium term, Senegal economic growthprospects are positive. From 6.5% in 2015, GDP isexpected to reach 7.0% in 2018, mainly supported bythe agricultural and industrial sectors. Volume of exports(phosphate, peanuts, and zircon) increased by almost15% in 2016, underpinned by a more diversified basein agriculture, fishing, and mining. The good economicperspectives are also driven by a growing domestic market,benefiting from an important demographic growth with anincreasing number of graduates.In the long term, the country, which already exports refinedpetroleum products, is expected to benefit from thediscovery of significant crude oil reserves. Production ofthe first barrels should start by 2019-2020.3

SenegalMarket Report - December 2018TourismThey are used to spending week-ends and holidaysin Dakar and la Petite Côte, considered as ‘peacefuldestinations’ compared to some other neighbouring areas.Today, tourism sector in Senegal remains one of the mostdiversified in the sub-region through:With an average contribution of 10% of GDP and 9%of total employment in 2017, the tourism sector holdsa key role within the country’s economy. Senegal wasthe favourite destination in West Africa for a long time,especially for beach tourism, thanks to a reasonabledistance from European countries (the main source oftourists) with no time zone difference, a stable and safeenvironment, comfortable climate and rich natural andcultural heritage (700 km of coastal beaches, 6 NationalParks, 7 UNESCO world heritage sites) and accommodationof a decent international standard.However, the sector suffered from a lack of investmentduring the 2000’s, as well as strong erosion along the PetiteCôte. More recently, the sector seems to be recording arecovery in response to a series of key measures launchedby the government in 2015 to boost the tourism sector(decrease of passenger fees, waiving of the visa fee, newtourism national agency, etc.). The authorities’ ambition isto place Senegal as part of the top five tourist destinationsin Africa with 3 million visitors per year by 2023. In 2015,France (27%), China (18%) and countries of the subregion(39%) provided more than 85% of international arrivalsinto Senegal. Due to the political stability, a large numberof nationals from the subregion have also invested in thecountry.www.horwathhtl.com Business and MICE mainly concentrated in Dakar(the city hosts several international organizations andcompanies’ headquarters) is extending towards twosecondary and complementary poles which includeBlaise Diagne International Airport/Diamniadio withcrew, transit, large conferences demand; and Saly whichis expected to evolve around a smaller MICE activity. Leisure along the Petite Côte region, characterized byseaside and nautical activities. La Somone and Saly, thetwo historical poles promoted by tour-operators arenow “ageing”. New poles are currently in developmentand include Pointe-Sarène and Nianing. Culture and history around Dakar in the island of Goree(slavery commemoration) and art events (Dakar Biennaleof Contemporary African Art, etc.), historical vestigesand festivals in Saint Louis and finally in Touba, thecapital of Mourides (annual pilgrimage which attractedan average of 2.5 million people in 2017).4

SenegalMarket Report - December 2018 Nature and eco-tourism mainly around Sine SaloumHorwath HTL divides leisure activities into 4 categories: Cultural leisure and entertainment such as heritage sites,museums, galleries, cinemas, theatres, concert halls Fun leisure such as: theme parks, gaming areas, bowling,casinos and night clubs, shopping centres, adventureactivities (paint-ball for instance) Sport and wellness leisure such as: stadiums and arenas,swimming pools, golfs, wellness centres/spas Nature leisure such as: parks, reserves for animals,treetop adventure courses, diving clubs, surf camps,pony clubs, sailing campsand La Casamance, currently underexploited (Club Medbeing the only international brand in the region) due topolitical, security and accessibility issues. Other sites ofinterest include the Lampoul desert can be developed.Leisure Market in SenegalLike many countries in the sub region, the Senegaleseleisure supply is mostly concentrated in the capital city.The other products are to be found on the coastlinedestinations of Petite Côte. The launch of Diamniadionew City provides opportunities for innovative leisureequipment. Other main cities inside the country have fewleisure products.Since independence, leisure have most often beendeveloped inside hotel resorts. Nevertheless, since 2010,new projects have been launched and some standalonesites have become specifically dedicated to leisure.www.horwathhtl.comIt is also important to distinguish merchant leisure activitiesto non-merchant ones. Above a certain price, the majorityof the population cannot be expected to spend its moneyfor leisure. Nowadays, the most affordable activities arecultural activities depending on public support. Apartfrom areas accessible to all, the majority of leisure sitesin Senegal can only be attended by a small, but growing,part of the population. Nevertheless, some initiatives fromcompanies like Canal Olympia tend to generalize access toactivities that used to be reserved to the more privileged.5

SenegalMarket Report - December 2018Dakar region leisure marketCultural Leisure & Entertainment - Dakar regionAs the biggest economic and demographic centre ofthe country, the majority of the leisure products areconcentrated in the Dakar region.Building demand for the leisure marketDakar has the most important workforce in Senegal. 70%of the capital population is actively employed. The regionis young and dynamic, with more than 50% of inhabitantsunder 20 years of age, thus urban master planning is acrucial issue for the capital. Between 2013 and 2017,the Dakar population has grown by 12,5%. Demographicprojections of the population in the region are high;although these will be partly housed by the Diamniadio andPink Lake urban schemes.Senegalese Households’ consumption expenditureprojections for the year 2021 could represent nearly15 million Euros. In this context, the Dakar region(including Diamniadio) could contribute 45% of the overallexpenditures. The average spend per Dakar inhabitants isalmost three time bigger than for the rest of the country .Oil exploitation in the North of the country by 2019 shouldenhance the Households’ consumption expenditure goingforward.www.horwathhtl.comDakar hosts two national theatres: the Grand ThéâtreNational (1,800-person capacity) and the national theatreDaniel Sorano (1,000-person capacity). The French Institutealso has an amphitheatre with a 500-seats capacity whereshows and concerts can be organized.Until recently, movies were shown in restaurants or halls.The most popular place to watch a movie was the domenext to Sea Plaza shopping mall. The supply of cinemas haschanged with the opening of two new cinemas in Dakar.Canal Olympia Terranga (300-person capacity) openedin May 2017 and has an outdoor stage where concertscan be held. Launched by Vivendi Group, Canal Olympiais a network of 9 cinemas spread across Senegal, Benin,Cameroon, Guinea, Burkina-Faso, Togo and Niger. Entrancetickets are 2,5 , with the business plan on a medium to longterm analysis. Another cinema complex has opened withinthe Magicland theme park: Ousmane Sembene cinemacomplex. It has three projection rooms, including a small5D room. The ticket price for a 2D projection is 3 .Dakar has five public or private museums, a few heritagesites and more than dozens of art galleries. These placesbenefit from a good visibility during cultural events,especially the ‘la Biennale de Dakar’, which is dedicated tocontemporary African art and held bi-annually during Mayin Dakar.6

SenegalMarket Report - December 2018Fun Leisure in Dakar region(comprising a skating ring, trampolines and balloon games),a fitness centre and a wellness centre. It mainly attracts anupscale and midscale clientele, living in residential districtswithin the capital. The opening of three cinema rooms (700seats) at the Sea Plaza was planned for March 2017, butthey have not been inaugurated yet. So far, there is nota real innovative leisure supply in Dakar (escape games,waterpark, freefall simulator), which highlights the level ofmaturity of the market. It can also be underlined that atthis stage, there is no critical mass of products dedicated tofun leisure able to constitute a critical mass to reach and toconstitute an efficient “leisure destination”.The majority of the supply of indoor fun leisure is spreadaround the city without a real identified structure. Somesmall independent actors have launched activities such aspaintball or children playgrounds across the capital. Nightlife-oriented leisure like casinos and night clubs are locatedin Dakar business district “Le Plateau” and in upscaleresidential districts. They attract both Senegalese andforeign clientele.Nevertheless, two types of fun leisure activities stand outfrom the rest: Magicland and the Sea Plaza. Magic land isthe most advanced example of a theme park in Dakar andSenegal. Inaugurated in 2004, this complex includes nineattractions and carousels for children, but also a hotel, aconcert room, a swimming pool with toboggans and twofootball fields. The price of the entrance ticket for theattractions is around 4 per person. It is mostly attended bymiddle-class Senegalese families. Magicland was completedby Ousmane Sembene cinema complex in March 2018.Sea Plaza is the other leisure area in Dakar. Located nextto the Radisson Blu hotel, Sea Plaza was a pioneeringproduct in the country as the first shopping mall in Senegal.It was developed by Teylium and inaugurated in 2010. Thecomplex hosts 84 brands, a supermarket and a food court.With “Red Game”, it also provides leisure activities witha 1,700 sq m area including a bowling, video games and acasino. Sea Plaza also hosts a 600 sq m children playgroundwww.horwathhtl.comSport & Wellness Leisure in Dakar regionDakar has an important number of sports facilities. Around20 gyms have opened in the capital (excluding suburbs)over the last decades. They are all private and most ofthem are small independent structures. However, there arethree important sport complexes providing a large range ofactivities. The Olympic Club is the biggest; which includesthe only climbing wall of the city. It is important to notethat a growing part of the population participates in sports,especially sports than can be exercised for free, such asrunning for instance or use of sport facilities located on theCorniche and provided