Botswana - Gabarone

Tourism Tattler - - BUSINESS & FINANCE - For de­tailed anal­y­sis visit http://hvi.hvs.com/mar­ket/africa/Botswana_-_Gaborone

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%.

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