Zimbabwe's Tourism Sector Full of Opportunities
ZIMBABWE'S tourism industry, which registered US$225,7 million investments last year, has huge potential for exponential growth as investors can tap into the broad spectrum of opportunities across its sub-sectors. The Zimbabwe Investment and Development Agency (ZIDA) said this in its World Tourism Market investment prospectus released last week.
The sector is one of the key areas the Southern African country will seek to promote and attract investment during its participation at the six-month long Expo 2025 Osaka in Kansai, Japan. Other key sectors promoted Zimbabwe will seek to promote at the expo in Japan, where the country will participate under the theme "Beyond The Limits", include trade and investment across the country's key sectors.
Zimbabwe has already surpassed the US$5 billion revenue target for the sector, which it expected to reach by 2025, as it remains one of the most popular tourism destinations globally.
One of Zimbabwe's fastest-growing and strategic key sectors, the tourism industry is expected to drive the country's economic turnaround. Against this background, the Government has made significant strides in the implementation of the National Tourism Recover and Growth Strategy that seeks to grow the tourism economy to US$5 billion by next year.
The National Tourism Recovery and Growth Strategy is anchored on Zimbabwe's vision to be a prime international tourist destination based on the judicious and sustainable exploitation of the unique assets of nature, culture, heritage and the built environment.
ZIDA said after taking a dip during the years of the Covid-19 pandemic (2020-2022), the local tourism sector registered notable recovery in 2023 and is poised to continue on this trajectory in 2024 and beyond.
"The sector is estimated to have contributed 1,7 percent to economic growth in 2023 and is projected to contribute the same in the current fiscal year. Average hotel room occupancy increased by 4 percent from 43 percent in 2022 to 47 percent last year.
"Estimated revenue from domestic tourism rose by 4,7 percent from US$12,6 million recorded in 2022 to US$13,2 million last year," it said, Total receipts increased by 27 percent to US$1,16 billion last year from US$911 million the previous year.
In 2022, the country recorded tourism investments worth US$312,5 million.
"With further investment, the sector has serious potential for exponential growth in the outlook period.
"To attract investment, Zimbabwe has been refining its policies and laws to align with the 'Open for Business' mantra.
"Investors are welcome to explore opportunities in the tourism sector which include construction and management of hotels and resorts, investment in tourism activities and restaurants, safari operations and many others," it said.
Specific opportunities available for investment in the domestic tourism sector include integrated resorts, hotels and lodges, convention centres and exhibition parks, golf estates and casinos, theme and amusement parks, shopping malls and restaurants.
Opportunities also exist in safari operations and conservancies. ZIDA said Zimbabwe is centrally located in the Southern African Development Community and this makes it a natural transit corridor for visitors traveling within the region.
"The country offers immense tourism opportunities due to its natural beauty, large variety of wildlife, excellent weather and navigable roads connecting the tourism regions to the main urban areas. The tourism product inmost of the regions has not been fully developed giving investors opportunities to venture into areas of potential with little competition," said ZIDA.
Meanwhile, the Central Mechanical Equipment Department (Private) Limited is seeking strategic investors under a Public-Private Partnership for the development of a US$14,5 million hotel with a three-star rating in Kariba.
CMED, a parastatal under the purview of the Ministry of Transport and Infrastructural Development owns 4,8-hectare piece of prime land in the resort. ZIDA said CMED was in the process of conducting a feasibility study for the proposed project. In addition, the country's tourism hub, Victoria Falls will soon experience the construction of two upmarket hotel projects with a combined value of US$114,3 million.
The investments, ZIDA said, entailed the development of a US$49 million four-star hotel and a US$65,3 million five-star hotel.
The four-star hotel and conference centre will be the first asset under the proposed Mosi oa Tunya Hospitality REIT (Real Estate Investment Trust) that would be listed on the Victoria Falls Stock Exchange.
And the proposed Victoria Falls Resort & Spa, a five-star hotel will be developed under a Public-Private Partnership (PPP) arrangement between the Victoria Falls City and Lamcent Capital -- a private entity registered in Zimbabwe.
Construction of the four-star hotel will begin after financial closure, which is expected to be reached before the end of this year and this is expected to pave the way for the development of the property on a 5,61-hectare piece of land.
Development of the property comprising 180 rooms including 114 standard rooms, 60 executive suites and six twin suites, 100 pax conference rooms, two deluxe restaurants, infinity pool, spa, gym -- boma and a wildlife watering hole, is anticipated to be completed at the end of 2026.
The US$65,3 million Victoria Falls Resort & Spa, which will have 160 rooms is a greenfield project with the following key features already in place a complete project feasibility assessment, assigned PPP agreement with a 500-year concession period, and a hotel management contract with one of the recognised names in the hospitality industry.
