The Gambian Tourist Value Chain and Prospects for Pro-Poor Tourism

Tourism in The Gambia: International ‘Best Practice’ in Poverty Reduction & Pro-Poor Growth Through Tourism
Draft Report (Friday 22 nd December 2006)
There is some evidence that the implementation of this embargo could be positively
influencing the balance between the supply and demand for hotel accommodation. It has
been during the embargo that proposals for some significant and diverse tourism products
were made and approved including: final approval of the Sheraton Hotel (US$30m);
approval of South African Zimbali development (US$22m); approach from Malaysians for a
golf course resort (US$22m) and two eco-tourism lodges sponsored by existing product
owners. Also the embargo has coincided with a significant upgrading of the tourism bed
stock in some of the major existing hotels. The Ocean Bay Hotel has recently been
completely upgraded to 4 star standard and half the Senegambia rooms are being similarly
upgraded (with the remaining 150 rooms to follow). As a result of the size of these hotels,
this upgrading trend is impacting on 18% of the national bed stock. These are very positive
developments.
Clearly the Sheraton Hotel, as an internationally-recognised brand adds an important
product to Gambian tourism. Not only will it more than double the number of 5 star beds
available in The Gambia, but it also signals serious business tourism potential in the
destination. This is important because it will bring additional tourists to the destination at a
time that fills the low season ‘summer hole’ in tourist activity.
3.1.2 Viability of the Accommodation Sector
There is widespread concern in The Gambia that the accommodation sector is marginal, a
concern mirrored the in the Tourism Development Master Plan. As a result of low
occupancy levels and low room rates negotiated with international tour operators, it is
claimed that insufficient returns are being made to maintain the bed stock – let alone
improve the quality of accommodation.
Figure 4:
Typical bed and breakfast room rates paid by tour operators to hoteliers
£ paid per night by Tour Operator
50
45
40
35
30
25
20
15
10
5
0
2 2 2 2 2.5 2.5 3 3 3 3.5 3.5 4 4 4
Standard of Accommodation
Low
Season
High
Season
Source: ODI Hotel interviews
Note: The discontinuity in the low season series reflects the low season closure of one of the hotels
An average of these figures, weighted by hotel size, suggests an average low season room
rate of about £9 and high season room rate on a bed and breakfast basis of £19. The room
rate information provided by fifteen hotel managers, collectively responsible for two-thirds
of Gambia’s bed-stock, was verified by the dominant international tour operator, the
Gambia Experience. This operator is able to secure rooms at average rates of £9 and £17 in
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