MICHIL'S NEWSLETTER

Our Africa

Why does homo oeconimicus tirolensis focus on opening hotels in nearby areas when they could export tried-and-tested models to far-flung places such as Africa?

Riding the entrepreneurial wave: homo faber cannot help himself from making and consuming.

 

The same applies to homo oeconimicus tirolensis. I too belong to this category. The South Tyrolean businessman or businesswoman have used all the land they can in tiny South Tyrol. They’ve moved beyond the borders, conquering Lake Garda, and headed even further afield, to the north and to the east, pushing all the way down into Tuscany.

 

The South Tyrolean entrepreneurs working in hospitality have got nothing to do with embodying the quintessence of genuine hospitality. Their penchant for adapting is well known, enabling them to create worldclass SPAs, providing excellent, in some cases even starred, cuisine, their efficiency is envied throughout the world, and their financial results are through the roof.

 

The history of homo oeconimicus tirolensis with their Lederhosen and trilby is one made of constant successes. Hats off – their will to not rest on their laurels should be acknowledged.

 

We have talked, time and again, about a system which doesn’t provide a widespread sense of wellbeing, which has ever-growing issues in recruiting staff, which feeds on false messages, which cannot self-regulate, which produces an even more standardised offer. That is why we will not return to these topics just this moment.

 

What I would like to focus on is trying to understand why homo oeconimicus tirolensis focuses on creating hotels nearby– relatively speaking, at times – rather than exporting tried-and tested models to far-flung countries. Such as? Well, why not Africa! The Sole24ore, the Italian equivalent of the Financial Times, making it somewhat of an authority in these matters, is the one who put forward this suggestion. Mhm. I have thoughts on this.

 

Yes. Africa. The black continent which, sooner than you know it, will rewrite international relations.

 

Natality rates are dropping faster than a lead balloon in our western, golden paradise, one standing out for its wealth – ridiculously so when compared to others – to the point nobody knows what will happen to social welfare. Africa’s situation, however, is the exact opposite.

 

In 25 years at least one third of all youth in the world between 15 and 24 will be African.

 

And there’s more: Africa is bursting with natural resources, necessary minerals to make e-cars and solar panels.

 

What at first may come across as good news, reveals some problems: the implementation of new, natural liquid gas projects, which will boost current production levels by 45%. That will have a drastic, negative impact on reaching our CO2 objectives.

 

The UN’s COP 28 will be convening in Dubai, the capital of the United Arab Emirates, to talk about climate change. The Emirates are the seventh-largest oil producers in the world, and one of its main global exporters. Which does not bode well. How could it?

 

The COP 28 President is the CEO of Adnoc, an oil company, and the United Arab Emirates are among the few countries who want to considerably increase their production levels in the next decade.

 

The same story repeats itself across most of the Gulf countries: Kuwait and Qatar do not even have climate goals, Saudi Arabia and Bahrain postponed climate neutrality to 2060, while Iran’s raw oil exports depend on the international sanctions levied against it.

 

We will only be able to make energy forecasts in 2030, hoping that we reach the peak of global energy consumption by then.

 

Let us return to Africa.

 

In September, the African Union joined the G20, the main international economic cooperation forum, rubbing shoulders with other countries and interested parties, including the European Union.

 

International companies are pursing millions of new African consumers, who spring up year after year, and hunt for unexploited markets in the most high-yield sectors: from cosmetics, organic, wine, to hospitality. The Hilton wants to open 65 new hotels in the next five years.

 

This should not surprise us: based on market research and different forecasts we know that millionaires are the group growing the fastest in all the world.

 

Where can we find these new millionaires? China? India? Think again. That’s right, Africa it is! Credit Suisse’ forecasts point to the fact it will have 768,000 millionaires in the next four years.

 

Africa’s challenge will be to manage this uncontrolled growth. In the next decade, Africa will boast the largest workforce in the world, beating India and China. By 2040, two children out of five will be African. That will be quite a blow to racist and intolerant groups around the world. Looking at the data, the impression I get is that certain of our rulers really are looking at things with a blinkered vision.

 

For anyone working in hospitality, I say: fear not, for we have a solution! Let’s leave Tuscany, Lake Garda unspoiled – or what we have not touched so far – and let us head to Africa. We will certainly think about it as, if you know us by now, you know we do not like resting on our laurels.

 

Also, the best music is African. What would our world be without blues? Good wine there is also aplenty, as art - Julie Mehretu, just to mention a name? And the mountains? And the vast lakes, so big that our Lake Garda pales in comparison?

 

Looking to Africa can be a good idea. After all, that is what we did in the past. We exploited their resources, exported millions of slaves, colonised their lands, created environmental tragedies – including wars, injustices, and violence– created ad hoc borders and states. We have a fair share of responsibility. Maybe, in the near future, our approach should change. Even though I doubt world powers such as China – which has had a stronghold in Africa for quite some time – Russia, the US, and even Turkey and the oil powers of the Gulf will adopt a soft approach. It is what it is.

 

Now, what can we, homo oeconimicus tirolensis, do? Build Tyrolean belltowers next to baobabs, ebony sleighs, 20,000 m2 SPAs – everything is bigger in Africa – Afriski and lift facilities – even though the perennial snow in Africa is few and far between, and those places are often impossible to reach. And, what is more, skiing is forbidden – and rightly so! – on the snow-covered Rwenzori Mountains between Uganda and Congo, on the Krapf Rognon glacier on Mount Keny and on the Kilimanjaro in Tanzania. Watching is allowed, climbing at a stretch – but no skiing.

 

Will our heroes, i.e. we, be able to do something and export the South Tyrolean model even to the wildest of savannas? Patcha Mama is waiting for us. There may be ‘so much trouble in the world’, as Bob Marley used to sing, thinking about his united Africa, but good thing we all have so many solutions in our backpack. Or so we think. As I said, I had opinions on the matter – and I hope my tongue-in-cheek newsletter hit the right spots.

Michil Costa