Botswana - Gabarone
Botswana is one of Africa's success stories. Real GDP growth has been around 5% per annum over the past 10 years. After suffering negative growth in 2015, mainly due to the downturn in China and falling commodities prices, the economy grew around 3.7% in 2016.
The Botswana hospitality industry is one sector of the economy continuing to thrive. Marriott announced a new 160 bedroom Protea hotel in the Gaborone CBD. Cresta Hotels is opening the 83 bedroom Cresta Maun resort in 2017. Much of the economic success is a result of sound macroeconomic policies; resulting in the World Bank describing Botswana as “a development success story”.
This strong endorsement is assisting the overall demand for hotels for business travelers in Gaborone. In addition Botswana is lucky enough to have two of the outstanding tourist destinations on the continent, Chobe National Park and the Okavango Delta, thus drawing significant numbers of leisure travelers to the country. Combined, business and leisure travelers have resulting in occupancy of 65-70% over the past few years. Such stable performance, despite a growth in ADR (in local currency) demonstrates the health of the market.
An improvement in global economies is crucial to further growth in the Gaborone hotel market; higher demand and prices for commodities and diamonds will lead to increased corporate demand, whilst improved economic confidence at home will encourage more tourists to the country.
Botswana enjoys political stability and strong economic recovery that will benefit the Gaborone hotel market. Investors are showing interest again and Hilton has announced the opening of its first property in the capital, proving its confidence in the market's potential to grow. In 2016, both occupancy and ADR picked up, boosting the values up by 6.1%.