According to the World Travel and Tourism Council (WTTC), Travel and Tourism is Zambia’s 2018 fastest-growing national economic sector, contributing US$1,846.9 million (ZMK19.4 billion) to national economy, reported WTTC, and 318.9 thousand jobs to the Zambian economy in 2018 while posting a +6.3% Gross Domestic Product (GDP), making it the fastest and bullish economic sector in the country.
Ten years ago, in 2008, Zambia Travel and Tourism sector made a net of US$542 million (7.43% of GDP) in revenue.
International visitors alone spent ZMK8.4 billion representing 8.3% of the total Zambian exports, and in terms if spending characteristics the leisure sectors account for a total of 38% while business was at 62%. Domestic spending on tourism and travel stood at 47% while international spending was 53%. The industry is estimated to create a total of 464.6 thousand jobs in 2019 with an estimated 1.1 million expected international visitors in 2019. This is according to the World Travel and Tourism Council’s annual review of the economic impact and social importance of the sector released this month.
It is evident that as the Zambia Tourism 2038 Strategy is in motion, there is need for the local business in the sector to initiate internationalisation through business networking and taking advantage of franchises that have interests in Zambia.
In November 2018, in an analysis report of Zambia, the Acorn Tourism Development Consultants noted that "Zambia’s appeal to the European leisure visitor is based on its natural resources, including its unspoiled and varied landscape. In addition to the iconic Victoria Falls, Zambia has a wealth of rivers, lakes and waterfalls, as well as a rich and unique flora and fauna. These elements, combined with the country’s interesting cultural traditions, make Zambia a strong adventure and safari destination.
Zambia is considered to be a safe and stable country with hospitable people. Zambia has the potential to appeal to the growing adventure, safari and eco-tourism segments from Europe, including the community-based tourism, birding, hiking and wilderness niches, and the main outdoor activity markets from Germany, the UK, the Netherlands, France and Scandinavia”.
The Zambia Tourism Master Plan 2018-2038 (ZTMP), which provides the Ministry of Tourism and Arts (MoTA) with the blueprint for national tourism growth, is currently awaiting approval by the Zambian cabinet. The ZTMP reports that while there is significant scope for Zambia to increase its market share in tourism from Europe, the country is not capitalising on this opportunity. International arrivals grew between 2010 and 2016, but leisure tourists declined from 31% to 26% in the same period. In 2016, Zambia received fewer arrivals (956,000) than all of its neighbours, except for Malawi, Angola and the Democratic Republic of Congo. Europe, which is Zambia’s second largest source region1, generates only 9% of those arrivals (88,300). The main European source markets are the UK (44%), followed by Germany (9%), the Netherlands and France (both 5%).
The key tourism features in Zambian include the culture diversity, cities, historic sites, lakes, wildlife, and five-star accommodation. Zambia has seven major cities considered tourist cities that include Chingola, Kitwe, Livingstone, Lusaka, Ndola, Siavonga, and The Copperbelt. Zambia has many historic attractions, that include Monuments, Museums, Shiwa Ngandu, Landmarks, and the Victoria Falls Bridge. There are three majot rivers in Zambia that include Kafue River, Laungwa River, and the Zambezi River. There are four major lakes in Zambia that include Lake Tanganyika, Lake Mweru, and Lake Bangweulu. There are five major Waterfalls in Zambia that include Victoria Falls, Kalambo Falls, Kundalila Falls, Lumangwe Falls, Ngonye Falls, and others. Zambia has several major National parks that include Kafue, Kasanka, Lochinvar, Lower Zambezi, Luiwa Plain, Laumbe, Nyika, Mosi oa Tunya, North Luangwa, Nsumbu, Sioma Ngwezi, South Luangwa, and other parks and retreat areas.
Zambia is now well globally connected in terms of hotel accommodation, with a network that with major regional and international hospitality players and brands that have made Zambia part of their portfolio include Radisson Blu, Protea Hotels, Taj Hotels, Avani, Anantara, InterContinental, Accor, and Marriott. The top five hotel brands by occupancy, experience, and assets in the world are Hilton, Hyatt, Marriott, IHG, and Wyndham; and Zambia hosts two - Hilton and Marriott.
Taj Hotels is a chain of luxury hotels and a subsidiary of the Indian Hotels Company Limited; headquartered at Express Towers, Nariman Point in Mumbai. Incorporated by the founder of the Tata Group, Jamsetji Tata, in 1903, the company is a part of the Tata Group, one of India's largest business conglomerates. The company employed over 13,000 people in the year 2010.
AVANI Hotels & Resorts is a hotel and resort chain with 23 properties across 15 countries. Majority of their properties are based in Thailand whereas a smaller number of properties are established in a few other countries. Avani is a part of the hospitality chain Minor Hotels.
Australia, New Zealand, Botswana, Laos, Lesotho, Malaysia, Mozambique, Namibia, Portugal, Seychelles, Sri Lanka, Thailand, United Arab Emirates, Vietnam, Zambia.
Radisson Hospitality, Inc., trading as Radisson Hotel Group, is an American multi-national hospitality group. The company started as a division of Carlson Companies, which owned Radisson Hotels, Country Inns & Suites and other brands. The group has hospitality assets in 115 countries and territories, including Zambia.
Anantara, operator of the Royal Livingstone Hotel, was founded in 2001 with the first luxury property in Thailand's seaside town of Hua Hin. Today, the operational portfolio spans Cambodia, China, Indonesia, Maldives, Mozambique, Oman, Portugal, Qatar, Sri Lanka, Thailand, United Arab Emirates, Vietnam and Zambia.
InterContinental Hotels Group plc, informally InterContinental Hotels or IHG, is a British multinational hospitality company headquartered in Denham, Buckinghamshire, England. IHG has about 842,749 guest rooms and 5,656 hotels across nearly 100 countries
Accor S.A., doing business as AccorHotels, is a French multinational hospitality company that owns, manages and franchises hotels, resorts and vacation properties. It is the single largest hospitality company in Europe, and the sixth largest worldwide. Accor, owners of Mantis Hotels that run Le Elements in Lusaka, operates in 100 countries, with more than 4,800 hotels and 280,000 employees worldwide. Its total capacity is approximately 704,000 rooms.
Protea Hotels by Marriott is a South African hotel and leisure company headquartered in Cape Town, South Africa. As of December 31, 2018, it was the largest hotel company on the African continent, with 80 properties in nine countries with 8,265 rooms. Marriott International is an American multinational diversified hospitality company that manages and franchises a broad portfolio of hotels and related lodging facilities. It has 30 brands with 7,003 properties in 131 countries and territories around the world, over 1,332,826 rooms (as of March 31, 2019), including 2,035 that are managed with 559,569 rooms, 4,905 that are franchised or licensed with 756,156 rooms, and 63 that are owned or leased with 17,101 rooms, plus an additional 475,000 rooms in the development pipeline and an additional 25,000 rooms approved for development but not yet under signed contracts.
The investment scene of the Zambian Travel and Tourism sector is getting diverse and containing international brands and industry players, a key element for growth and internationalisation of the local Tourism industry as 2038 approaches.
Some of the top hotels, resorts and lodges in Zambia include Taj Pamodzi Lusaka, Neelkanth Sarovar Premiere, InterContinental Lusaka, Le Elemntos By Mantis, Protea Hotel Chipata by Marriott (Eastern Zambia), Hilton Garden Inn Lusaka City Centre (Lusaka), InterContinental Lusaka, Protea Hotel Cairo Road by Marriott, Protea Hotel Lusaka by Marriott, Protea Hotel Safari Lodge by Marriott, Radisson Blu Hotel Lusaka, Southern Sun Ridgeway, StayEasy Lusaka, AVANI Victoria Falls Resort, Protea Hotel Livingstone by Marriott, Royal Livingstone Hotel, and the Protea Hotel Chingola by Marriott (Copperbelt).
There is only one direct Travel and Tourism listed company in Zambia – Pamodzi Hotels Limited, and there is room for more operators to list and tap into international equity to develop assets and brands within the country.
According to Financial Insights Zambia, in the financial year ending 31st March 2019 of Pamodzi Hotels Limited, the hotels room segment income increased due to increase in higher number of delegations arrived in the hotel over the last year and transient segment revenue also performed higher than the last year resulting in higher revenue (Annual Report 2018). Overall, the average daily rate increased due to the Kwacha depreciation hence increasing the overall revenue per room. Moreover, “the total turnover increased by 7.13 percent from ZMW77.5 million to ZMW83.0 million over the same period and operating profit margin also increased by 11.3 percent from ZMW13.7 million to ZMW15.3 million for the period ended 31st March 2019” (Abridged Financial Statement, 2019).
Acorn, highlighted opportunities for SMEs in the growth of Travel and Tourism sector in Zambia to include accommodation, activities, and MICE market tourism. They said, “the tourism sector developments proposed in the ZTMP should create a large range of opportunities for SMEs.
There seems to be an opportunity for smaller accommodation and tour operating entrepreneurs to take one next step in expanding their share of the mid-price, foreign tourist market. On an individual basis, they may be able to upgrade their facilities, service levels and marketing capacity. However, taking this opportunity may require forging joint ventures or partnerships with existing mainstream operators — for example, providing services to and hosting guests of established safari lodge and hotel operators who want authentic local experiences.
Improved road access to the Kafue National Park would open the opportunity to offer a combined round-trip itinerary for the Victoria Falls-safari or Lusaka-safari experience, including visits to the Kafue Flats wetlands, Choma museum and cultural interactions along the way.
Packaging and promoting off-the-beaten-track itineraries for more adventurous travellers to lesser-developed, authentic attractions in Zambia, especially those in the north of the country, such as Lake Tanganyika, Kalambo Falls, Bangweulu Wetlands, the Lumangwe and Kabwelume waterfalls and among others.
In Lusaka and potentially in Livingstone and other larger urban centres, MICE tourism offers opportunities for emerging tour operators to provide transport services during major events and to package pre- and post-tours for delegates. Since it’s the government that produces most of these events in Zambia, government ministries can be instrumental in adopting preferential policies for using qualified SME as service providers. There are also potential opportunities for professional conference organiser (PCO) services for a suitable candidate.
Nevertheless, due to the current lack of direct flights from European markets, the greatest opportunity to expand the MICE market in the short term is likely to come from the regional African markets rather than from Europe”.
Source: UK AID, Zambia Tourism Authority, FIZambia, Acorn
