TOURISM Business Council of Zimbabwe (TBCZ) chief executive officer Paul Matamisa says hotel expansion in Bulawayo will not happen until investors see positive outcomes, amid declining hotel occupancies.
According to the Hospitality Association of Zimbabwe (HAZ), shrinking disposable incomes on the back of exchange rate volatility has been weighing down domestic hotel occupancies, thus discouraging investment into expansion.
Bulawayo is one such place seeing declining hotel occupancies, as evidenced in the Zimbabwe Tourism Authority’s Tourism Trends and Statistics First Half 2024 Report.
In the report, the authority recorded a six-percentage point drop in average hotel occupancies to 44% in Bulawayo, from the 2023 comparative. During the period, the authority reported that national average hotel room occupancies rose by three percentage points to 44% in the half year, from the 2023 comparative.
The increase was driven by higher occupancies in Victoria Falls, Harare, Kariba and Hwange, which drove much of the national average room uptake.
“There are many issues, beginning with the economy and dilapidated infrastructure like roads. The investors look at all that. Expanding will not happen until investors see positive outcomes,” Matamisa said in an interview with NewsDay Business during HAZ’s five-day Hospitality Leadership Summit 2024 being held in Masvingo, which ends tomorrow.
“Another limiting factor is the punitive charges by banks when hotels want to take loans. The excessive charges discourage hotels to expand and it affects their investment.
“We also have policies that do not consider how certain ministries like Tourism and Hospitality would be affected and discourage investment.
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However, we now have Zida [Zimbabwe Investment and Development Agency], and we are hoping they can assist in the cost of doing business as tourism is the most taxed business.”
Matamisa also called on hotels in Bulawayo to do destination marketing and avoid conditional selling to maximise their occupancy rate.
“Another thing is they need to look into conditional selling. Their packages come as a package that includes bed, breakfast, lunch and dinner, which will make the package expensive. They should not force one to be mandated to pay for all four. Have lighter and affordable packages, at least people opt for non-rated hotels,” he said.
“Bulawayo should do destination marketing to showcase what is offered for different facilities to place the province on the map and even encourage the investor to expand.”
HAZ president Brian Nyakutombwa said low disposable incomes brought on by economic difficulties were one of the issues the hotel industry had been dealing with.
“The sector is facing challenges because of low disposable incomes due to economic challenges. You find that you don’t get as much traction,” he said.
“For locals still, there is a challenge with the pricing models which inhibit people from travelling and enjoying, utilising the facilities that are available across the country.
“So, if those challenges were to be mitigated, I can foresee domestic tourism coming in really on a strong note in terms of contributing to the occupancy and the tourism industry at large.”
The HAZ president is also the general manager of Montclair Hotel and Casino.
