The financial case for eco-tourism in Africa - CNBC Africa


The financial case for eco-tourism in Africa - CNBC Africa

Eco-lodges are making significant inroads in Africa as they emerge as a formidable value proposition. These unique offerings present a blend of profitability, environmental protection, and beneficial local economic impact. As environmental consciousness takes center stage globally, eco-tourism in Africa is uniquely positioned to capitalize on this trend. CNBC Africa delved into 'The Financial Case for Eco-Tourism in Africa' with Beverly Spencer-Obatoyinbo, the visionary Founder of Pumbaa Farmhouse.

In recent years, sustainable tourism has gained considerable traction across Africa. With an increasing number of guests demanding eco-friendly credentials, establishments like Pumbaa Farmhouse have made concerted efforts to incorporate green practices into their operations. Positioned just outside Nairobi, Pumbaa Farmhouse employs sustainable construction and operation methods to gain a competitive edge over larger hotel investments. Modular container cottages, minimizing environmental footprints, and the meticulous management of waste highlight its dedication to sustainability.

"We're trying to do everything right," explained Spencer-Obatoyinbo. The pursuit of a gold eco rating has become a pivotal aim. Navigating the layers of Kenyan environmental regulations could be intricate, but Pumbaa Farmhouse is steadfast in its commitment. Air quality, water standards, and adherence to the plastic ban are diligently managed with substantial investments in eco-technologies.

A prime example is the Bioox system installed at Pumbaa, an on-site filter reprocessing rain and wastewater for their expansive garden and vegetable area. Moreover, hidden solar panels provide a renewable energy source, ensuring a transition towards total independence from the national grid. Such investments, though hefty at the outset, promise returns within three to five years while maintaining a minimal environmental footprint.

Eco-tourism not only offers ecological benefits but also facilitates local economic sustenance. Eco-lodges like Pumbaa contribute to this cycle by sourcing local products and services, thereby investing back into the local community. Beverly Spencer-Obatoyinbo underscored the importance of remaining connected to local artisans and producers -- from farmers to craft makers.

Crafting an authentic African lodge experience helps attract both international and local 'staycation' tourists, cushioning the business during off-peak seasons. Local guests often express pleasant surprise at finding such sustainable environments so close to Nairobi, drawn by reduced prices tailored to encourage domestic tourism.

Despite these advantages, challenges persist. High compliance costs and hefty levies are barriers that call for government intervention. Spencer-Obatoyinbo advocates for reduced levies and competitive pricing for park visits, essential to keep Kenya as a leading eco-tourism destination in East Africa.

"It's crucial to strike a balance between government revenue and remaining competitive," Beverly explained. "Kenya has an unmatched offer in ecotourism, drawing tourists to iconic destinations like the Masai Mara and Tsavo. However, affordability and incentives for businesses are key to ensuring sustainability and competitiveness."

The eco-tourism landscape in Africa is indeed rich with potential, yet requires thoughtful nurturing by both private investors and government bodies. Investment in climate-resilient infrastructure and strategic incentive models will fundamentally support the growth and resilience of this vibrant sector.

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