Africa -  Zimbabwe - Harare

Recovering from a two-year drought and prevailing political instability, Zimbabwe’s economic growth has slowed down to 0.6% in GDP and is predicted to only grow by 3.8% in 2017 and 3.4% in each 2018 and 2019, as per World Bank.

Zimbabwe’s tourist arrivals increased by 9% in 2015 and arrivals in the first quarter of 2016 already went up by 16% compared to the same quarter the year before. Whereas occupancy in Harare stagnated in 2016 and is not predicted to grow in 2017. Furthermore, average rates and RevPAR are declining and continue to do so, because the government demands discounted rates for their civil servants and hotels do not have a chance to increase rates over time.


On top of that the reserve bank in Harare started printing bond notes in 2016, known as pseudo-currency, responding to the shortage of US dollars, which has raised fears that the country might be facing another period of inflation. 

Zimbabwe borders the greatest wildlife and safari regions in Southern Africa and has plentiful National Parks and attractions of its own. Part of which are the Victoria Falls (UNESCO World Heritage Site). In November 2016, the new Victoria Falls International Airport was officially opening its upgraded and new facilities. The airport was funded by China and constructed by a Chinese construction company. It is now equipped to handle 1.5 million passengers per year (three times as much as before) and some of the world’s largest aircrafts. In addition to the massive debt cancellation by China in 2015 and the acceptance of the Yuan as currency in exchange, the new airport is a further sign of growing Chinese influence in Zimbabwe.

Etihad Airways and Qatar Airways are amongst the major airlines who have voiced their interest in serving the new hub. While Harare may see its performance down, Victoria Falls should be the new go-to destination in Zimbabwe.

Exchange Rate:

Exchange Rate 2015 Exchange Rate 2016 Change 2015/2016 Exchange Rate 2017 Change 2016/2017
US$ 1 1 1
Zimbabwe - Harare 0.00266 0.00266 0.0% 0.00266 0.0%

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%

Zimbabwe - Harare RevPAR Change

Zimbabwe - Harare RevPAR

Year RevPAR
2010 44.11
2011 53.13
2012 61.38
2013 48.85
2014 48.08
2015 47.01
2016 41.25
2017 (f) 36.19

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