Hotel occupancy levels hit 80%

Tourism Business Council of Zimbabwe president Wengayi Nhau

ZIMBABWE’S tourism industry, which had setbacks in 2019 and 2020 due to the Covid-19  pandemic, is  seeing  hotel occupancy rates reaching 80% of pre – Covid 19 levels.

Decisions by governments at the height of the Covid-19 scourge to ground airlines and restrict international travel pushed foreign tourist arrivals into Zimbabwe down by 90% in 2020 —  the biggest plunge in 40 years.

Tourism Business Council of Zimbabwe president Wengayi Nhau told businessdigest that he anticipated occupancy rates to surpass pre–pandemic levels next year.

“In relation to our recovery, we are currently sitting at around 80% of our 2019 figures,” he said.

“Judging by the occupancies that we are getting, it actually gives us 80% of 2019 figures. Places like Victoria Falls, which were nearly deserted have actually recovered. We project that in during this time in 2024 we will surpass the 2019 levels. This is because of the improved performance of the sector,” Nhau added.

To cushion the sector from pandemic effects, the government extened duty exemption for imported tourism capital goods.

It also introduced a stimulus package for the industry.

Last year, Hospitality Association of Zimbabwe president Farai Chimba also said the resumption of business had seen an increase in the occupancy rates.

“We have seen some level of resumption of business. We are happy with the progress so far made in the recovery process. The domestic market remains strong. City and country hotels have posted above 60% occupancy rates,” Chimba said.

“Resorts, while lagging behind, have seen an upswing since the opening of borders and easing of entry requirements for vaccinated travellers. It is estimated that over 9 000 jobs were lost in the sector (at the height of the pandemic), with most leaving the industry permanently.

“There are immediate and long-term issues that need to be attended to. Some of the key ones are rebuilding the sector out of Covid-19. We must look at what resources are available to retool and uplift the national product.

“Human capital capacity building is also key in driving value for stakeholders in our sector. We must build sustainable destinations that are climate friendly.”

However, players in the hospitality sector have said they need low interest loans to drive recovery.

Chimba said the industry would also quicken its recovery if it accesses grants — non-interest-bearing forms of funding.

Last year, the Safari Operators Association of Zimbabwe said the industry required up to US$100 million in grants to ride out Covid-19 pandemic-induced setbacks.

Presenting the 2022 national budget in the past year, Finance minister Mthuli Ncube revealed that the government had opted to issue domestic guarantees amounting to ZW$24,2 billion and US$15,2 million to cushion companies against the effects of Covid-19.

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