Algeria: Increasing appeal
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With an increasing number of hotel developments under way, a renewed focus on niche attractions and a spate of new regulations to legislate and encourage sustainable growth, officials in Algeria are hard at work bolstering the underdeveloped tourism sector’s potential.
While neighbouring Morocco and Tunisia have long been regular stops for both package tours and luxury visitors, Algeria’s tourism sector suffered from the unrest in the 1990s and as a result found itself lagging in terms of revenues and visitors.
However, figures for the sector this year appear promising. According to a statement by Mohamed Amine Hadj Said, head of the Algerian National Tourism Office, the number of tourists visiting Algeria had reached 1.3m as of mid-October, with the year-end total expected to approach 3m, up from 2.5m at end-2011.
The government is working to expand the number of possible tourism opportunities, with a variety of targets for improving both the quality and quantity of accommodation and attractions. According to the Ministry of Tourism, the number of hotels reached 1200 at the end of 2011, with the number of rooms totalling 90,000, compared to 72,000 in 2010. Algeria has designated some $1bn to renovate state-owned hotels and has also announced construction of 750 hotels in 48 locations throughout the country at an additional cost of $5bn. The ministry has said it hopes to increase the number of beds in the country by 86,000.
According to Hadj Said, other initiatives include a hotel modernisation plan, with some AD70bn (€681m) being allocated to upgrade and modernise the sector under an initiative launched in 2009 called the Quality Tourism Plan Algeria. Also in the pipeline is the establishment of a number of “hospitality training institutes”, where students are instructed in how to provide international-standard services to visitors.
There are currently three such public institutes located around the country, with a total of just under 900 places for students. Seven new training centres are under development, to be distributed throughout Algeria.
The expansion of government support to the industry has brought about increased attention from abroad. Accor, a France-based hotel firm, recently opened a new hotel under its “Novotel” brand in Constantine. The hospitality firm is planning to have a total of 20 new Novotel and Ibis-brand hotels in the country, and has already opened a number of outlets in regional cities, such as Oran and Tlemcen.
Other hotel chains are following suit. Algeria is set to see its first development by InterContinental Hotels Group, with the Holiday Inn Algiers-Cheraga Tower expected to be completed by 2014. Likewise, the Netherlands-based Golden Tulip hotel brand is working with Algeria’s Ramdani Group to see a five-star Golden Tulip Hotel established in the coastal town of Skikda, to be completed during 2013.
Algeria is aiming to strengthen the appeal of niche activities, such as cultural tourism, which offers the potential to diversify the range of visitors and reduce the impact of seasonality. One such initiative is aimed at the town of El Ouata, which seeks to highlight the town of El Ouata’s pottery, hand-woven baskets, jewellery and prehistoric carvings.
Government officials have also established a “tourism improvement zone”, measuring some 20 ha around El Ouata, in an attempt to stir up private sector interest in the area. Traditional crafts are a key focus for tourism authorities as they seek to expand niche offerings, and according to some estimates, up to 13,600 jobs could be created in the segment within the short term.
On October 11, while attending an event celebrating World Tourism Day, Mohamed Benmeradi, the minister of industry, small and medium-sized enterprises and investment promotion, said Algeria was preparing to pursue an “ambitious and realistic” strategy for regulating the sector’s continued development. Based on a government plan adopted in 2008 to markedly increase tourism sector figures by 2030 without causing “anarchic and uncontrolled tourism”, officials are currently working on a legal framework that will ensure coastal protection, beach and forest conservation, and cultural and archaeological site protection.
Specifically, the new legal structure will emphasise ensuring sustainable tourism development, with specific regulations on, among other things, the use of beaches by touristic enterprises and targeted tourism expansion zones.
Moves to strengthen the sustainability of niche offerings, alongside broader expansion of the sector’s capacity, will bode well in ensuring Algeria can accommodate increasing numbers of tourists. Tunisia, which for so long relied on package tours for “sea, sun and sand” tourism, often suffered from seasonal drops and economic slowdowns in its source markets – something that Algeria is hoping to avoid as it builds up its foundation for future tourism growth.