Zimbabwe’s tourism industry is grappling with significant losses, having faced nearly US\$40 million in potential revenue cuts during the first quarter of 2025. This setback is a result of investor departures, ongoing economic instability, and a decrease in consumer spending, undermining one of the country’s most vital economic sectors.
Official reports indicate a substantial 16% drop in tourism revenue, with receipts declining from US\$241 million in the same period last year to US\$202 million. This translates to a daily revenue loss of over US\$440,000, marking the worst performance since the pandemic halted global travel. The sharp decline raises doubts about Zimbabwe’s goal of reaching US\$5 billion in annual tourism revenue, as investor confidence continues to falter, and funding for local tourism operators remains scarce.
The Zimbabwe Tourism Authority (ZTA) reported a 9% decrease in international arrivals, with the number of foreign visitors dropping to 336,369. Domestic tourism also experienced a significant 18% decline, falling from nearly two million last year to 1.6 million. The situation worsens with a US\$2 million decline in new tourism investments, as operators struggle with high interest rates and a reduced consumer spending power.
The 16% decline in tourism revenue has had a direct impact on the country’s GDP, lowering it by 0.09%. With the tourism sector’s multiplier effect estimated at 3.2, the economy is potentially losing up to US$125 million, which represents approximately 0.3% of GDP. This downturn threatens Zimbabwe’s 2025 GDP growth target of 5%, with projections suggesting it could fall to 3.8% if the trend continues.
Amid the national downturn, Victoria Falls remains a bright spot. The region saw only a slight decline in performance, with hotel occupancy rates dropping by less than 2% compared to the previous year. Both large-scale hotels and smaller businesses reported positive results.
Nevertheless, overall national hotel occupancy has fallen to 37%, a decline from 39% last year, signaling a reduction in demand across the country. ZTA data further highlights stark regional differences. European arrivals dropped by 35%, with even steeper declines from Nordic countries (65%), Switzerland (46%), and Italy (43%). Visitors from Oceania, primarily Australia and New Zealand, also saw a significant 51% reduction, possibly linked to challenges in air travel connectivity.
In contrast, Asia showed positive growth. The number of tourists from Malaysia rose by 135%, Japan saw an 86% increase, and China/Hong Kong experienced a 26% boost. These gains may be due to improved bilateral relations or the resumption of direct flights between Zimbabwe and key Asian nations.
The decline in tourism reflects deeper structural issues that need to be addressed. High visa fees, negative perceptions of the country, expensive travel costs, and underdeveloped infrastructure are significant barriers to tourism growth. While improvements to airports are important, factors such as safety, clean water, reliable electricity, and good governance are critical to fostering a successful tourism sector.
This tourism downturn is part of a broader economic struggle. Despite an increase in mining output, foreign exchange earnings from the sector fell by 27% in the first quarter of 2025, leading to a loss of US\$204 million in potential inflows. Weak global commodity prices and logistical challenges are contributing factors to this decline.
Business sentiment is also deteriorating, with companies expressing frustration over the high cost of credit and the scarcity of affordable financing. Reports indicate that lending rates ranging from 40% to 47% are putting a strain on businesses, exacerbating the economic challenges.
As neighboring countries like South Africa experience a rebound in tourism, Zimbabwe faces the risk of falling further behind unless immediate reforms are enacted.
Zimbabwe’s tourism sector is at a crossroads, navigating a tough period with an uncertain road to recovery ahead. The challenges remain significant, and only time will tell if the country can overcome this economic turbulence.
Source: Zimbabwe Tourism Industry Strorty Million US Dollar Revenue Loss in the First Quarter of 2025, as Economic Turmoil and Investor Exodus Threaten Future Growth (07/07/25)
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