Web pages are files and data that needs to be transferred from the hosting server to the visitor's browser. And before the server sends the requested data it must get a request. The communication between any computer and the web server is not direct. We are using the internet network infrastructure to connect servers, computer and other communication equipment. Each our request goes through many routers, switches and links. The same applies to the requested data sent by the server. It must go the same way to come to the computer that has requested it. This directly reflects on the speed of page loading.
If the page loads very slowly then there might be many reasons for it. But if it loads quickly then one of the reasons is probably a nearby hosting server. Nobody likes to wait for web pages to load so having a possibility to speed up loading times is a wish of every webmaster. And if your website is targeting only specific country then there is one very simple factor that can significantly contribute to faster loading times--web hosting location. Since all or majority of the visitors come from this country it is a good idea to choose hosting company that has servers in this country. This doesn't mean that you have to choose hosting company from this country. You only have to pay attention where are the servers located. With proper hosting location you will shorten the distance between your visitors and the web server and thus decrease time to load pages and consequently improve user experience.
There is also one additional factor that improves your website ranking if hosted on the servers in the right area. It seems that local Google search engines for countries prefer websites which are hosted locally. The location is determined from the IP address. Therefore it is pretty easy to find out where the website is hosted. And if your website will rank higher if hosted on a local web server then this is just an additional reason to choose right hosting.
Anyway, the internet network is expanding and the speeds are increasing every day. In general, if you are targeting the general audience then it is not so important where do you host your website. But if you focus on a specific country then make sure that you choose local hosting.