Africa -  Mozambique - Maputo

For a comprehensive review of the Africa market, click below:
HVS In-Depth Africa Hotel Valuation Index:   2016 | 2015 | 2014

The Mozambican GDP growth dropped to 2.5% in 2017, led by a shy mining sector, notably coal and aluminium. The reduction in foreign direct investment as a result of the hidden debt crisis continues. Investors and developers stepped back due to the lack of information in Mozambique. Although the country experienced a strong recovery in 2016, it has proven to remain quite fragile. In addition, the recovery of the oil and gas industry, initially forecasted in 2019/20, was pushed to 2022/23 which had a negative impact on both the economy and tourism. Economic growth shrank, and hotels’ occupancy dropped significantly. Hotel values experienced a drop of 23.7% although were still higher than in 2015 demonstrating a turbulent economy dependent on oil and gas.

However, the government’s efforts to improve investors’ confidence have not been futile. Several international institutions agreed to free funds to help the economic diversification of the country amongst which are the EU, the World Bank and the African Development Bank. The government took measures to boost the business environment and promote and diversify tourism such as easier visa regulations, rehabilitation of natural reserves and improved services and infrastructure. In addition, the opening of the new supply in Maputo is likely to induce demand; Stay Easy just opened and a Melia and City Lodge are expected to open in 2019.

Maputo has been defined as one of the top five priority destinations for investment in Mozambique tourism. The capital has benefited from the boom in sub-Saharan tourism as well as the open skies that attracted international airlines to fly direct to Maputo. 2018 shows positive trends. Values are forecasted to be up by 1.8% in 2018. The increase in demand in 2019 will partially offset the 22% increase in supply leading to a limited drop in values whilst 2020 is likely to show an increase in values of 12%.

Exchange Rate:

Exchange Rate 2016 Exchange Rate 2017 Change 2016/2017 Exchange Rate 2018 Change 2017/2018
US$ 1 0 0
Mozambique - Maputo 0.01652 0.01536 -7.0% 0.0165 7.4%

Change In Value For Market:

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%

Mozambique - Maputo RevPAR Change

Mozambique - Maputo RevPAR

Year RevPAR
2015 38.30
2016 89.45
2017 68.28
2018 69.52
2019 64.69
2020 (f) 68.81

For more information, please contact:

Tim Smith, MRICS
[email protected]
  • +27 797 342296 (w)
Rishabh Thapar
[email protected]
  • +27 0 792790584 (m)
Laura Dutrieux
[email protected]