ANB-BIA SUPPLEMENT

ISSUE/EDITION Nr 418 - 15/09/2001

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Zambia
Zambia’s tourist industry


ECONOMY

The number of foreign tourists coming to Zambia is increasing

In 1999, Zambia received 450,000 foreign visitors, a 6% increase over the previous year. In 1997, 340,896 tourists came, up from the 1996 figure of 263,968. The number of arrivals in 2000 rose 7.2% over 1999 with a growth forecast of more than 10% this year.

Over the past five years, earnings from tourism have jumped five fold, reaching US $150 million per year by 2000. Tourism’s contribution to the economy is considerable. It accounts for over 10% of Zambia’s Gross Domestic Product (GDP) and employs more than a quarter of the labour force. These figures are interesting considering that tourism has consistently recorded positive growth; growth above copper mining which is still Zambia’s key source of foreign exchange and exports.

A combination of factors

«The strong performance of this important sector, bears out our conviction that it is the leading area for generating growth in our economy,» says Dr Katele Kalumba, Zambia’s Minister of Finance.The explanation for this strong showing lies in a combination of factors. Nearly all the major State hotels and game lodges have been privatised. This has brought in not only private funds, but also innovative marketing strategies.

In particular, the Kafue National Park, the country biggest, is experiencing rapid growth with new 30 room lodges being constructed. Seeking adventure, foreign tourists flock to bush resorts, attracted by the prospect of experiencing a side of Africa that is rapidly disappearing. «Zambia is a country that is a perfect destination for third and fourth time international visitors who are looking for something completely different and wild,» says Time Came, owner of Chinzombo Safari Lodge located in the South Luangwa National Park, one of the largest parks in the country.

Recognising the value of tourism to the economy, the government has introduced new measures to accelerate the industry’s performance. Dr Kalumba, in his 2001 Budget speech, announced the suspension of tax on accommodation offered by hotels and lodges in Livingstone, the country’s tourist capital. The move is meant to prime Livingstone as a major international tourist haven in Southern Africa, and to ensure that the sector gains a firm foothold.

Major developments

However, much of the boosting of the industry is likely to result from the recently reconstructed Sun Hotel Complex, formerly Musi-oa-Tunya Inter-Continental, owned by South Africa’s Sun International. The US $55 million complex, which opened in June, is perched almost on the lip of the Victoria Falls, offering a scenic view of one of the world’s most spectacular natural wonders.

It is the biggest project in Zambia’s hospitality industry, and consists of two separate hotels, three star conference hotels with 216 rooms, a five star hotel with 173 rooms as well as a children’s park. The resort is expected to attract 130,000 visitors per year by 2003. Work on renovating Livingstone Airport and terminal building is progressing. The expansion programme will ensure that bigger aircraft fly directly to Livingstone, instead of landing in Lusaka.

Another major development is the US $10 million refurbishment of the Lusaka Inter-Continental Hotel, bought by Uganda’s Marasa Holdings Ltd. The work is now over and the hotel is now in a position to offer services of the highest international standards in its redesigned rooms, conference centres, new restaurants, clubs and bars.

All is not well

However, all is not well in Zambia’s tourist industry. Despite abundant potential, the country is lagging behind many of its neighbours. Zambian hotels have an average of 700 beds, while their counterparts in Zimbabwe and South Africa have 1,000 and 1,500 beds.

The local hotels could not accommodate all the tourists that came to view the solar eclipse, compelling the Zambia National Tourist Board (ZNTB) to appeal to private guesthouses and individuals to offer additional room to visitors.

A further troubling fact is that tourists do not spend much. An international visitor to Zambia spends an average US $220 per night, compared to $248 in Botswana and $512 in Namibia. Many of the tourists are not holidaymakers, but rather those that come to do business and visit friends and relatives, mainly from South Africa and Zimbabwe.

A major impediment to growth is the country’s poor infrastructure, particularly roads. Many of the tourist spots are inaccessible by road, as the network has been swept away, compelling visitors to use aircraft. Most of the local airports are still in a deplorable state and can only accommodate smaller planes.

Tourism: only for outside visitors

Additionally, distances between tourist sites are so huge that only the wealthy can afford to bear the costs of reaching them. These expenses contribute to discouraging the average Zambian family from spending time at the country’s tourist resorts, leading to the popular perception that tourism is meant only for outside visitors.

«Until there is meaningful investment in the road infrastructure, we will have to struggle to attract the middle-income market,» says Came.

Tourism is also suffering from steep interest rates, now averaging 50%. Tour operators are struggling to borrow, a difficulty compounded by government’s failure to settle huge hotel bills accrued by State officials. As a result, hoteliers are operating below capacity and cannot expand. Some have even been forced to close down.

It appears that many foreign visitors find the local tourist services rather limited. Zambia’s tourism is largely wildlife-based, neglecting to exploit culture that would add an African touch to the service so strongly desired by those from other cultures.

«Zambia has a lot of traditional festivals, ceremonies, music and dance, but we haven’t done enough to put culture at the centre of tourism,» says Professor Mapopa Mtonga of the University of Zambia’s Centre for Creative Arts. «Our tourist calendar should be designed in such a way that it coincides with these events.»

The ZNTB has drawn up a strategic plan for 2001-2005, under which it envisages to promote cultural aspects of tourism, among other attractions.

But the ZNTB is facing severe financial problems. A few years ago, the board closed its offices in Australia, Germany and Italy due to inadequate funding.

Despite these troubles, Zambia’s tourist industry is looking towards better times.


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