Zam­bia - Lusaka

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

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