The Sunday Mail
Business Reporter
Hospitality industry players are optimistic of a business upturn this year, buoyed by opening up of key source markets in the Asia and Pacific regions and the removal of Covid-19 pandemic as a global healthy emergency.
Tourism is among the sectors that were severely affected by the global pandemic as countries imposed travel restrictions.
However, on May 5, 2023, the World Health Organisation (WHO) announced that Covid-19 is no longer a public health emergency of international concern and many countries had already removed travel restrictions, with the global tourism sector already showing signs of a rebound.
Based on the United Nations World Travel Organisation (UNWTO)’s forward-looking scenarios for 2023, international tourist arrivals could reach 80 to 95 percent of pre-pandemic levels this year, depending on the extent of the economic slowdown, the ongoing recovery of travel in Asia and the Pacific.
Victoria Falls Stock Exchange (VFEX)-listed hospitality company African Sun said, while concerns about the macro-economic environment persist both locally and globally, there are promising prospects of a business upturn.
“We anticipate improvements in occupancies at many of our hotels, driven largely by election business and remaining “pent-up” demand arising from overdue events and conferences.
“In addition, we expect to see continued improvements to business and corporate transient demand as businesses continue to make progress towards normal travel patterns, including a perceptible acceleration in international travel, particularly for our Victoria Falls hotels,” Mr Venon Musimbe, the company’s secretary, said in an update for the quarter to March 2023.
Zimbabwe is due to hold elections this year in August. Election business usually drives hotel occupancies as the process attracts foreign visitors and hosting of conferences and meetings.
According to Mr Musimbe, in line with the company’s vision to be the leading provider in hospitality and leisure operations in Africa by providing outstanding experiences, it remains focused on a strategy to upscale the state of properties through ongoing refurbishment programmes.
He said the group anticipates completing the US$4,2 million refurbishment of Hwange Safari Lodge’s 100 rooms during the second quarter of the current year.
“The group will continue to monitor and respond to the unique challenges and opportunities presented by the current operating environment,” he said.
Global rating firm Fitch Solutions said Zimbabwe’s tourist arrivals will in 2023 continue to rise and surpass the pre-Covid-19 levels.
Tourist arrivals in Zimbabwe peaked to an all-time high of 2,6 million in 2018, with the growth driven by surging arrivals from all source regions and major markets.
“Tourism in Zimbabwe will grow at a stronger pace this year, signalling a recovery from the worst effects of the Covid-19 pandemic,” Fitch Solutions said in its report on the Zimbabwe tourism sector.
Zimbabwe Stock Exchange (ZSE)- listed hotelier Rainbow Tourism Group (RTG) reported that its first quarter to March 31, 2023 occupancies were back to near pre-Covid period levels.
Company secretary, Mr Tapiwa Mari said resort hotels are now approaching the traditional first quarter pre-COVID-19 pandemic average levels of 38 percent, having achieved an occupancy of 35 percent during the first quarter.
“These occupancy levels are expected to increase as the year progresses,” Mari said.
“Hotel occupancies closed the quarter at 43 percent, which was on par with the same period in 2022. City hotels continue to drive activities for the Group mainly through conferencing activities while resort hotels, which are predominantly located in Victoria Falls, have shown a strong post-Covid-19 recovery,” he said.
Mr Mari said the group is set to benefit from increased activities in the tourism industry mainly driven by the Government and NGO sector.
He noted that the return of regional and international tourism coupled with pre-election business, is expected to boost the group’s prospects going forward.
Government has since made significant progress on the implementation of the National Tourism Recovery and Growth Strategy, which seeks to grow the tourism economy to US$5 billion by 2025.
President Mnangagwa in August 2020 launched the tourism growth plan as he led the restart of the sector’s contribution to the national economy after having been heavily crippled by the outbreak of the Covid 19 pandemic.
The National Tourism Recovery and Growth Strategy is anchored on Zimbabwe’s vision to be a prime international tourist destination based in the judicious and sustainable exploitation of the unique assets of nature, culture, heritage and the built environment.
The strategy is informed by the Government’s Vision 2030 to become an upper middle income economy characterized by increased investment, decent jobs and a populace free from poverty and corruption.
