African youth highlight innovative travel, tourism entrepreneurship trends at AYTIS 2023
Young African entrepreneurs have showcased their innovative ideas in the tourism and travel sector at the Africa Youth Tourism Innovation Summit (AYTIS) 2023 in Swakopmund, Namibia, thanks to the support of African Tourism Partners. During panel discussions on the second day of the summit, these entrepreneurs emphasized the significance of travel technology in today's tourism industry.
Dubbed TravelTech, this emerging trend enables tourism entrepreneurs to leverage technology to enhance their businesses, drawing inspiration from the success of FinTech. Musthafa Tijjani, the founder and CEO of Aeropaye Smart Flight, a Nigerian travel company, explained that while travel tech is not entirely new, its adoption in the travel and tourism sector has significantly increased in recent times.
Tijjani highlighted several benefits of incorporating technology into tourism businesses, such as streamlining operations, facilitating easy payments, accessing valuable data, and conducting competitive research. He acknowledged the existing gap between travel and fintech, but expressed optimism that AYTIS, through its master classes led by industry experts, will bridge this divide.
York Zucchi, the chairman of Start-up Tribe in Switzerland and moderator of the panel on "Mastering the art of capital raising," emphasized the importance of leveraging technology in the tourism industry. He explained that by embracing technology, businesses can ensure financial transparency, making their financial status accessible for auditing and potential investors for funding opportunities.
Robert Elman, DBN head of SME Finance at Namibia Development Bank, echoed Zucchi's sentiments, emphasizing that tourism start-ups utilizing technology are more likely to secure funds for expansion due to the ease with which their businesses and claims can be assessed.
Another emerging trend is risk sharing. Start-ups operating in the same industry are increasingly collaborating to pool their resources, skills, and funds, thereby reducing competition-induced pressure and facilitating business growth.
Zucchi advised entrepreneurs to start small, build trust, and demonstrate their potential to attract investments. He encouraged businesses seeking expansion to seek collaborations with similar-sized enterprises instead of relying solely on loans. By combining resources, these collaborations can achieve significant growth without incurring excessive debt.
Crowdfunding has also proven to be a successful avenue for young entrepreneurs, particularly in Africa, where high bank interest rates often make loan repayments challenging. Mikul Shah, co-founder and CEO of Purple Elephant Ventures in Kenya, suggested that when traditional funding sources are unavailable, entrepreneurs should reach out to friends, family, associates, and like-minded individuals to secure financial support.
Lastly, entrepreneurs were advised to shift their approach from designing products based on assumptions to actively involving customers in the product development process. Susu Nkumalo, a tour operator, shared her success story, stating that her most fruitful endeavors were those initiated by her clients, with her overseeing their execution. Additionally, Nkumalo emphasized the importance of targeting Generation Z with customized products, such as music festivals, weddings, educational fairs, and sports tourism, as these offerings are highly sought after.
