TOURISM INVESTMENT OPPORTUNITIES IN RWANDA

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1 TOURISM INVESTMENT OPPORTUNITIES IN RWANDA

2 Rwanda at a glance Rwanda is a forward-looking country with a vision to elevate to a middle income, service and knowledge-based economy by In the last 23 years, Rwanda has taken back the reigns to redefine itself as the preferred investment and tourism destination in Africa. Under HE President Paul Kagame s leadership, Rwanda has become a reference point for good governance in the region, political stability with well-functioning institutions, observance of the rule of law and zero tolerance for corruption. We are also recognized as having made great advances in ICT, and have been consistently ranked first globally in ICT promotion, by the Global Technology Report of 2015, and the 9th safest place in the World (Travel & Tourism Competitiveness report - WEF 2016). Significant achievements registered over the last two decades: Macro-economic stability and low level of Government debt. Grown the economy at an average annual GDP of 8% for the last 7 years Growth of the GDP per1 capita in 2016; $720 from $701 in 2013 Currently, the service sector is the largest contributor to the GDP. The sector contributes about 47%, followed by Agriculture at 33% and the Industrial Sectors 13% respectively Life expectancy raised from 49 years in 2000 to 66 years by 2015 Literacy rates (aged 15 to 24): raised from 48% in 2000 to 86% in 2014 Financial inclusion: from 48% in 2008 to 89% in 2016 Rwanda has been rated by Fitch ratings with B+ outlook citing strong economic growth buoyed by low public debt and confidence in the management of the economy in the short and medium term. Rwanda has also emerged as the top global reformer in the World Bank Doing Business report. The recent ranking has positioned the country as the easiest place to do business in the East African region and 2 nd in Africa. (2017 World Bank Doing Business Report) The country has been ranked as the most competitive place to do business in the East African region and 2 nd in Africa by the World Economic Forum s 2017/18 Global Competitiveness report. Efficient markets and stable political position are among the top key pillars that have boosted the country s competitiveness Name: Republic of Rwanda Land size: 23, 338 sqm Capital City: Kigali Time Zone: UTC +2 (Central Africa Time) Languages: English, French, Kinyarwanda, Kiswahili Currency: Rwandan Franc GDP per capita: $720 (2016) GDP growth: 5.9% Population: 12.1 Million KEY FACTS ABOUT RWANDA Climate: Temperate all year round (24-27 degrees Celsius) Why Invest in Rwanda: Investor Friendly Climate Ranked as the 2 nd most competitive economy in Africa Business Opportunity - Large Market Size RWANDA: 12.1 Million people EAC (East African Community): 162 Million people COMESA (Common Market for Eastern & Southern Africa): 430 Million people CEPEGL (Economic Community of Great lakes Countries): 90 Million people 2 Tourism Investment Opportunities In Rwanda

3 DEMOCRATIC REPUBLIC OF CONGO Rubavu Volcanoes National Park UGANDA Akagera National Park TANZANIA Lake Kivu Kigali Nyungwe National Park BURUNDI Incentives With the recently approved investment law, Rwanda has an array of Investment Incentives for investors ready to invest in the key priority sectors as indicated below; FISCAL INCENTIVES Zero Corporate Income Tax for companies planning to relocate headquarters to Rwanda 15% Preferential Corporate Income tax for strategic sectors i.e. energy, transport, affordable housing, ICT and financial services. Accelerated Depreciation of 50% for key priority sectors i.e. tourism, construction, manufacturing and agro-processing Exemption of capital Gains tax Seven-Year Corporate Income Tax Holiday for large projects in strategic sectors i.e. energy, exports, tourism, health, manufacturing and ICT Repatriation of Capital and assets NON-FISCAL INCENTIVES Quick business and investment online registration Assistance with tax-related services and exemptions Assistance to access utilities (water & electricity) Assistance with obtaining visas and work permits One Stop Center that provides notary services Provision of Aftercare services to fast track project implementation NB: All fiscal incentives listed above have requirements that need to be fulfilled before they are granted. Benefits under EAC Customs Union Under Exemption: As a member of the EAC Customs Union, investors in the Tourism and Hospitality industry benefit from exemptions on customs duties and VAT for imported hotel equipment provided that they engrave and mark the equipment s with the hotel logo imported by a licensed hotel for it s use. Hotel equipment exempted includes; washing machines, kitchen ware, cookers, fridges and freezers, air conditioning systems, cutlery, televisions, furniture, linen and curtains and gymnasium equipment. For further information please visit Tourism Investment Opportunities In Rwanda 3

4 An overview of tourism in Rwanda Tourism is the largest source of foreign exchange earnings in Rwanda and it is projected to grow at a rate of 25% annually The sector is the biggest contributor to the national export strategy Total revenues generated from the sector in 2016 alone was $404 Million The sector has also attracted Foreign Direct Investments with major international hotel brands such as the Marriot, Radisson Blu, Radisson by Park Inn, One & Only, Singita and Wilderness Africa operating Bisate Lodge Rwanda is carving out its niche as a regional and international conference hub, with its world - class Kigali Convention Centre, owing to: Ever improving conference facilities Straight forward immigration procedures (online visa applications, visa-at-gate policy for all Africans, one tourist visa policy for EAC) An excellent and expanding transport network Diverse entertainment options The rapid growth of RwandAir in addition to other airlines serving Kigali such as KLM, SN Brussels, Ethiopian Airlines, Qatar Airways, Turkish Airlines, Kenya Airways opening the economy to the outside world 4 Tourism Investment Opportunities In Rwanda

5 The Kivu Belt Map Tourism Investment Opportunities In Rwanda 5

6 HOT SPRINGS ECO RESORT Rubavu District T he Hot Springs Eco Resort is located in Rubavu on a peninsula that features a natural hot water spring which make it an ideal location for the development of a Hot Springs Resort. The Hot Springs Resort is ideal for offering all-encompassing Spa & Wellness facilities and services. This advantageous setting and natural asset will offer guests an exceptional island experience. The Hot Springs Resort is to cater for high-end international customers, who are passing through Rubavu as part of the Volcano National Park and Gorilla tours. These attractions are located within a one hour driving range. The Hot Springs are planned to be fully developed and integrated into a spa and wellness concept. Project Data Hot Springs Ownership: Size of property: Community owned land Approx. 12,5 hectares Zoning rights: Tourism zone (TA 2) Topography: Environmental Impact Analysis (EIA): Hilly (>15 meters over 200 meters length, sloping max. 10%) Required Investment Value: US$ Tourism Investment Opportunities In Rwanda

7 HOTEL STRIP Rubavu District Hotel Strip development will be well situated along the beachfront of the main Rubavu tourism zone. The property will be highly visible from the entry point of the city and easily accessible from the newly developed beachfront road. It will be less than 100m from the existing Serena Hotel 4*. The terrain is almost flat with little vegetation on site. The hotel strip will comprise of a mixeduse entertainment and leisure development that accommodates lodging, public areas, retail, spa, and event facilities for banqueting, events and conferences. Project Data Hotel Strip Ownership: Title Deed: Space available: Zoning rights: Topography: Environmental Impact Analysis (EIA): Investment Value: City of Rubavu District of Rubavu 3 Plots Tourism development (TA1) No more than 1m variances A full EIA study will be required for the proposed development Suitable for investments in a range of US$ Tourism Investment Opportunities In Rwanda 7

8 5* GOLF RESORT & RESIDENTIAL VILLAS Karongi District In the north of Karongi District, in Rubengera Sector, in close proximity to Karongi city centre a unique new 18-hole championship golf course will be an attraction for the international, regional and national upmarket leisure traveller. Rwanda will position itself as a prime Golf destination in East Africa attracting a new clientele to the region through the golf course plus a luxurious 5* Resort. This new development will be a favourite addition to tourists visiting Volcanoes National Park wishing to extend their stay in Rwanda. Along with the Golf Course and the 5* Golf Hotel, a residential complex will be developed embedded in the beautiful surrounding of the golf grounds Project Data Golf Course Ownership: Size of property: Zoning rights Development Plan Investment Value: Public and private owned land 80 hectares Tourism rights A deluxe Resort with approx rooms at a 5* level and residential villas set nearby, managed by the hotel. Beside the golf facilities the hotel will provide typical resort facilities (Spa & Wellness, gym etc.), but will also offer high level cuisine and F&B outlets plus conference facilities. The Golf Course and the Resort will be developed in parallel and will open at same time. The Golf Course will be an 18-hole course designed at championship level in order to attract experienced golfers. The level of quality would rate the course as the number 1 course in Rwanda. In a second phase real estate development adjacent to the resort and the Golf course, the mentioned 30 to 40 residential villas will be launched. The products offered are: Second homes (villas / apartments) Apartments to rent and to be serviced by the hotel. Suitable for investments in a range of US$ 8 Tourism Investment Opportunities In Rwanda

9 KARONGI LAKESIDE RESORT Karongi District In the center of Karongi city, in close proximity to the business centre and opposite the Environment Museum an absolute prime site is available for development of a hotel, lakeside lodge or resort. The site offers direct lake access and a total land of up to 37,000 sqm is available. Rwanda is positioning itself as a prime destination in Eastern Africa attracting a new upscale clientele to the region. Lake Kivu has been demarcated as a priority area for tourism development with a number of new tourism products under development: Congo Nile Trail, 227 Km adventure & community trail Gishwati Mukura National Park Water Sport activities as well as hiking and biking trails have been developed Community based tourism, visits of coffee and tea plantations are also on offer As well as numerous restaurants, tented camps and other accommodation offers. This new development will close a gap as until today Karongi is missing an upscale hotel which would be the ideal stop over for any tourist travelling along Lake Kivu as well as a sought after destination for visitors from Kigali. Project Data Karongi Lake Resort Ownership: Size of property: Zoning rights Development Plan Business options for investors Investment Value: Public owned land, immediately available up to 37,000 sqm (3,7 hectares); can be divided into smaller lots Tourism rights A deluxe Resort with approx rooms at an upscale 4-5* level managed by a renown professional operator. Beside the accommodation the hotel will provide typical resort facilities (Spa & Wellness, Gym etc.), but will also offer an extensive range of water sports activities as well as hiking and biking tours, organized by the hotel. Thus the hotel will become the ideal place to stay and to explore the magnitude of tourism attractions along the Lake Kivu. The Resort will also offer spacious facilities for conference and events, weddings and private parties. Different PPP models (BLT, BTO and BOT) would be available as well as purchase of land. Suitable for investments in a range of US$ Tourism Investment Opportunities In Rwanda 9

10 VACATION VILLAGE Gicumbi District The vacation park is a lucrative concept for the Gicumbi District and gears towards families, singles and groups of friends that enjoy an eventful and nature-orientated lifestyle. The increasing demand for domestic and regional travel as well as the need for nature and landscape is an integral part of the leisure concept. Tree population and water play a major role in the concept s design. Project Data Vacation Village Ownership: Size of property: Zoning rights: Community owned land Approx. 46 hectares Tourism zone Topography: Hilly (>15 meters over 200 meters length, sloping max. 10%) Environmental Impact: Analysis (EIA): Guidelines/rights: Investment Value: Required Zoned for tourism and leisure development Suitable for investments in a range of US$ 10 Tourism Investment Opportunities In Rwanda

11 LAKE BURERA LODGE Burera District Lake Burera is easily accessible in one hour from Kigali by domestic visitors, tourists from neighbouring country such as Uganda and international visitors. Volcanoes National Park has established itself as a tourism highlight in East Africa and as a main reason for visits to Rwanda. The unique experience of Gorilla tracking attracts visitors a year spending US$ 1500, 00 for a Gorilla permit. The demand has been steadily increasing over the years. Project Data Lake Burera Ownership: Community owned land (100%) Size of property: Approx hectares Zoning rights: Tourism zone Topography: Not more than 1 m variances Environmental Impact Analysis (EIA): Guidelines/rights: Investment Value: Required for future the investment in the area Zoned for tourism and leisure development Suitable for investments in a range of US$ Tourism Investment Opportunities In Rwanda 11

12 INVEST IN REMARKABLE RWANDA RWANDA DEVELOPMENT BOARD P.O.Box 6239, Kigali, Rwanda Gishushu, Nyarutarama Rd. KG 220 Street, Kigali RDBrwanda RDBrwanda

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