Listed gaming and hotel group Sun International is currently investigating new hotel and resort investments in no less than five African countries apart from its existing operations in South Africa and Zambia, according to CEO Peter Bacon.

Bacon was speaking recently at the World Economic Forum's Africa Economic Summit in Cape Town, where he was commenting on the increasing viability of doing business on the African continent.

According to Bacon, the group is awaiting the outcome of its proposed $75 million resort project-including a hotel, convention centre and restaurants in Angola. At the same time, it is investigating similar projects in Nigeria, Uganda, Mozambique and Tanzania.

"There is certainly no lack of opportunity in Africa," Bacon told Summit participants. "Overall I'm very optimistic - the opportunities are there and capital raising is not a problem."

Sun International is building on its recent success at Livingstone, Zambia, where it constructed and operates two hotels, among other facilities, at Victoria Falls. While admitting that the project had endured a "shaky start" in 2001 due to the poor conditions prevailing in neighbouring Zimbabwe, the Zambian operations had now "turned the corner" and had been the catalyst for an enormous amount of new economic activity in the area, Bacon said.

"We've created 1,800 jobs, and apart from this have seen the creation by locals of new attractions, accommodation, restaurants, transport and there are now 31 flights weekly between South Africa and Livingstone."

He noted that in 2001 the company had to import all of its supplies from South Africa, as nothing could be provided by the local community. However, after four years of working closely with local farmers to improve the quality of food available, Sun International now purchased 70% of its food requirements locally. This was a good example of a successful partnership between business and local and national governments, he believed.

"There was nothing in Livingstone until we worked with the government to help provide the necessary infrastructure," he noted. "We formalized the framework for the partnership and the deliverables over time. In this way Africa has the opportunity to expand the hotel and resorts sector."

However, there was often a disconnect between local and national governments in various African countries that acted as a barrier to investment and entry into the market. Unless governments were prepared to commit to removing the barriers, the investment would not come.

"It can be done if governments - both local and national - commit to it," stated Bacon. "We have to rely on the provision of infrastructure in certain areas by the government. In Mozambique, for example, this has been a stumbling block in the past because even though we have identified numerous sites, they can't provide roads, electricity or water in the area."

He believed bureaucracy was still a "huge issue" -governments and companies working together had to find ways to fast-track developments. One key to success in Zambia had been the government's appointment of an individual as a liaison between Sun International and various government departments to overcome stumbling blocks on all issues.

The CEO also called for "more friendly" visa requirements for tourists in southern Africa, suggesting the creation of a single regional visa in a similar vein to the Schengen visa system adopted by certain European Union countries.

He also highlighted the need for southern African countries to avoid competition with each other in the tourism industry.

"The scope for achievement is far greater with pooled resources than if each country goes it alone," he said.

Bacon concluded by noting that, according to a recent international survey, the amount of economic activity generated by tourism across Africa was expected to more than double by 2015 to $150 billion from an expected $73.6 billion in 2005.

I-Net Bridge