This insight was shared by the Zimbabwe Investment and Development Agency (ZIDA) in its investment prospectus for the World Tourism Market, released last week.
The tourism industry is a focal point for the Southern African nation as it aims to promote and attract investment during its participation in the six-month Expo 2025 Osaka in Kansai, Japan.
In addition to tourism, Zimbabwe will also highlight trade and investment opportunities in other key sectors at the expo, operating under the theme "Beyond The Limits."
The country has already exceeded its US$5 billion revenue goal for the tourism sector, which was initially set for 2025, solidifying its status as one of the world's leading tourist destinations.
As one of Zimbabwe's rapidly expanding and strategically important sectors, tourism is anticipated to play a crucial role in the nation’s economic recovery. In this context, the Government has made notable progress in executing the National Tourism Recovery and Growth Strategy, which aims to elevate the tourism economy to US$5 billion by next year.
This strategy is rooted in Zimbabwe's ambition to become a premier international tourist destination, focusing on the responsible and sustainable use of its unique natural, cultural, heritage, and built environment assets.
ZIDA reported that following a significant downturn during the Covid-19 pandemic years (2020-2022), the local tourism industry experienced a remarkable recovery in 2023 and is expected to maintain this positive trend into 2024 and beyond.
The sector is estimated to have contributed 1.7 percent to economic growth in 2023, with similar projections for the current fiscal year. Average hotel occupancy rates improved by 4 percent, rising from 43 percent in 2022 to 47 percent last year.
Revenue from domestic tourism increased by 4.7 percent, climbing from US$12.6 million in 2022 to US$13.2 million in the previous year. Overall receipts surged by 27 percent, reaching US$1.16 billion last year compared to US$911 million the year before.
In 2022, tourism investments in the country amounted to US$312.5 million.
With additional investment, the sector holds significant potential for substantial growth in the coming years. To attract investors, Zimbabwe has been updating its policies and regulations to align with the 'Open for Business' initiative.
Investors are encouraged to explore various opportunities within the tourism sector, including the construction and management of hotels and resorts, investments in tourism activities and restaurants, as well as safari operations.
Specific investment opportunities in the domestic tourism sector encompass integrated resorts, hotels and lodges, convention centers, exhibition parks, golf estates, casinos, theme parks, amusement parks, shopping malls, and restaurants.
There are also opportunities in safari operations and conservancies. ZIDA emphasized that Zimbabwe's central location within the Southern African Development Community positions it as a natural transit corridor for travelers in the region.
The nation presents significant tourism potential, attributed to its stunning landscapes, diverse wildlife, favorable climate, and well-maintained roads that link tourist destinations with major urban centers. According to ZIDA, many regions have yet to fully realize their tourism potential, creating opportunities for investors to explore areas with minimal competition.
In a related development, the Central Mechanical Equipment Department (Private) Limited is actively seeking strategic partners through a Public-Private Partnership to establish a US$14.5 million three-star hotel in Kariba.
CMED, a state-owned entity under the Ministry of Transport and Infrastructural Development, possesses a 4.8-hectare prime land parcel in the resort area. ZIDA indicated that CMED is currently undertaking a feasibility study for this initiative. Additionally, Victoria Falls, the country's tourism epicenter, is set to see the launch of two luxury hotel projects valued at a total of US$114.3 million.
ZIDA reported that these investments include a US$49 million four-star hotel and a US$65.3 million five-star hotel.
The four-star hotel and conference center will be the inaugural asset of the proposed Mosi oa Tunya Hospitality REIT (Real Estate Investment Trust), which aims to be listed on the Victoria Falls Stock Exchange.
Furthermore, the planned Victoria Falls Resort & Spa, a five-star establishment, will be developed through a Public-Private Partnership (PPP) between Victoria Falls City and Lamcent Capital, a private firm registered in Zimbabwe.
Construction of the four-star hotel is anticipated to commence following financial closure, which is expected to occur by the end of this year, facilitating the development of the property on a 5.61-hectare site.
The property development will feature 180 accommodations, including 114 standard rooms, 60 executive suites, and six twin suites. Additional amenities will consist of a conference room with a capacity for 100 people, two upscale restaurants, an infinity pool, a spa, a gym, a boma, and a wildlife watering hole. The project is expected to reach completion by the end of 2026.
The Victoria Falls Resort & Spa, with an investment of US$65.3 million, will offer 160 rooms and is classified as a greenfield project. Key components already established include a comprehensive project feasibility study, a signed public-private partnership agreement with a 500-year concession, and a hotel management contract with a well-known entity in the hospitality sector.