Zambia - Lusaka
The copper mining industry in Zambia has impacted the economy of Zambia in the same way other emerging markets whose economies are supported by commodities. As an alternative strategy at maintaining economic growth, Zambian authorities are looking at the tourism industry. Initiatives such as the Zim-Zam UniVisa and the eVisa are targeted at increasing tourist arrival figures by simplifying movement across African countries
The Zambian Investment Agency expressed optimism that the country was able to capture the targeted 1 million tourist arrivals in 2015. According to the Zambia Tourism Board (ZTB), Zambia received more than 946,000 tourists in 2014, Zambia Airports Corporation Limited reported 1.36 million arrivals in 2012, with international visitors accounting for 1.14 million, illustrating current levels are significantly below historic numbers. The Chinese are still regarded as a prime source of tourists into Zambia and will continue to be targeted.
Performance of hotels in Lusaka was relatively stable in 2015 with a marginal increase in occupancy and a small drop in room rate. As a result hotel values in Lusaka fell only slightly in 2015 (-2.6%), compared to a massive drop in 2014 (-12.4%). Companies clearly view this as a short term problem as Hilton Worldwide has announced the development of a brand new Hilton Garden Inn which is targeted to open in 2017 and Quantum Global purchased the Intercontinental Hotel Lusaka from Kingdom Hotel Investments.
Benefitting from a stable amount of hotel supply, Lusaka is expected to see the hotels' occupancy and average rate reasonably grow. The sale of the Intercontinental in 2016 demonstrated investors' confidence and boosts values up to US$142,000, representing a 6.8% growth against 2015.