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Investment challenges in the hotel industry in Kigali, Rwanda: Hotel managers' perspectives


  • Josephine Gatsinzi
  • Ronnie Donaldson


Developing countries today compete to attract foreign direct investment to their local hotel industry. Many have therefore already changed their policies on foreign investment in order to compete effectively. Recovering from the 1990s genocide, the Rwandan Government has created an environment conducive to investment, to attract both local and foreign investment finance. This paper discusses the tourism investment policy context in Rwanda. It describes a survey of Kigali hotel managers' perceptions and opinions on challenges for investment in the country's hotel industry. The survey found that the perceived weaknesses of investing in the hotel sector are closely related to problems faced by the Rwandan tourism sector in general, such as the perception that Rwanda is not a safe tourism destination, the lack of skilled labour in tourism services, the lack of finances in the form of loans to potential investors and the lack of adequate tourism infrastructure.

Suggested Citation

  • Josephine Gatsinzi & Ronnie Donaldson, 2010. "Investment challenges in the hotel industry in Kigali, Rwanda: Hotel managers' perspectives," Development Southern Africa, Taylor & Francis Journals, vol. 27(2), pages 225-240.
  • Handle: RePEc:taf:deveza:v:27:y:2010:i:2:p:225-240 DOI: 10.1080/03768351003740548

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    References listed on IDEAS

    1. Johan Fourie, 2006. "Economic Infrastructure: A Review Of Definitions, Theory And Empirics," South African Journal of Economics, Economic Society of South Africa, vol. 74(3), pages 530-556, September.
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    4. Limao, Nuno & Venables, Anthony J., 1999. "Infrastructure, geographical disadvantage, and transport costs," Policy Research Working Paper Series 2257, The World Bank.
    5. Peter Perkins & Johann Fedderke & John Luiz, 2005. "An Analysis Of Economic Infrastructure Investment In South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 73(2), pages 211-228, June.
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