Africa -  Botswana - Gaborone

Botswana is home to one of the most exclusive safari destinations. The country’s economy is growing between 5% and 6% a year. Gaborone continues to put measures in place to strengthen the economy, much of the economy is based on diamonds. Real GDP growth was down to 2.9% in 2016 following domestic pressures and the downfall in diamonds demand leading to a drop-in diamond prices. However, the economy is improving and has structures in place to help build a strong sustainable growth. GDP growth for 2017 is estimated at 4.2%, which is a positive sign that the country is recuperating. Gaborone is among the top 10 developing cities in Africa. Botswana has large major game reserves and national parks, which has captured travellers looking for safari and wildlife experiences and gave a reputation for adventure tourism. The country’s tourism industry is flourishing and significantly contributes to the national economy. The Okavango Delta was listed as a UNESCO World Heritage Site in 2014, placing Botswana into a more prominent place in the world travel and tours space. The re-opening of Belmond Eagle Island lodge has also seen huge interest in tourists visiting for safari. The government has a focus on the growth of tourism and on promoting the destination to corporate and leisure travelers. Gaborone offers a good business environment and is a perfect starting point for safaris and road trips through Sub-Saharan Africa.

However, occupancy rates in Gaborone for 2016 decreased to 57.5% compared to 2015. Although the government invested in tourism, it aims to keep it exclusive; therefore, the rates are high, making regional travellers and middle class international tourists unable to travel to the country. RevPAR was down 8.6% leading to a decrease in value of -11.1%.

 

Exchange Rate:

Exchange Rate 2015 Exchange Rate 2016 Change 2015/2016 Exchange Rate 2017 Change 2016/2017
US$ 1 1 1
Botswana - Gaborone 0.09743 0.09018 -7.4% 0.09812 8.8%

Change In Value For Market:

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

Botswana - Gaborone RevPAR Change

Botswana - Gaborone RevPAR

Year RevPAR
2010 67.75
2011 76.14
2012 65.19
2013 59.84
2014 53.88
2015 47.39
2016 43.30
2017 (f) 39.16

For more information, please contact:

Tim Smith, MRICS
tsmith@hvs.com
  • +27 797 342296 (w)
Laura Dutrieux
ldutrieux@hvs.com
Sofie Otto
sotto@hvs.com