Africa -  Zambia - Lusaka

Zambia’s economy came under strain in 2015 due to external headwinds and domestic pressures intensity. A slower regional growth, low copper prices and regular power outages that intensified in 2015, impacted all sectors of the economy. Gross domestic product (GDP) grew at 2.8% and 3.3% in 2016, much slower than the average 7.4% between 2004 and 2014.

However, economic conditions improved in 2016, the hotel market is on the rise government is supporting the hospitality sector tremendously. The World Bank is projecting an improved growth rate of 4% in 2017. The overall economic situation in Lusaka is positive. Tourism is accelerating at a fast pace, and contributing to the economic growth of the country. Tourist arrivals increased to 956,332 in 2016 from 931,782 the previous year. Africa, accounted for 77.9% of the total international arrivals followed by Europe, with 9.2% of arrivals while Americas accounted for 5% of the total arrivals. The government is investing extensively to create awareness and demand of tourism opportunities in Lusaka, it is also determined to make the country a leading tourist destination.

Lusaka has experienced an occupancy rate of 57.5% in 2016 compared to 56.5% in 2015, REVPAR was up by 17.0% leading to an increase in values of 17.0% this has brought confidence and a positive outlook to the country.

Exchange Rate:

Exchange Rate 2015 Exchange Rate 2016 Change 2015/2016 Exchange Rate 2017 Change 2016/2017
US$ 1 1 1
Zambia - Lusaka 0.12101 0.09582 -20.8% 0.10867 13.4%

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%

Zambia - Lusaka RevPAR Change

Zambia - Lusaka RevPAR

Year RevPAR
2010 75.96
2011 86.09
2012 82.03
2013 78.06
2014 68.40
2015 66.60
2016 77.93
2017 (f) 71.72

For more information, please contact:

Tim Smith, MRICS
tsmith@hvs.com
  • +27 797 342296 (w)
Laura Dutrieux
ldutrieux@hvs.com
Sibongile Masiba
smasiba@hvs.com