News / National
Zimbabwe tourism industry bleeds US$40 million in 90 days
16 hrs ago | Views
Zimbabwe's tourism industry is reeling from a steep downturn after losing nearly US$40 million in potential revenue during the first quarter of 2025, amid a silent but deadly investor exodus and persistent economic headwinds that have rattled one of the nation's last remaining economic lifelines.
According to official figures obtained by the Zimbabwe Independent, tourism receipts fell sharply by 16% to US$202 million, compared to US$241 million in the same period last year. The drop translates to losses of over US$440,000 per day - marking the worst quarterly performance since the global travel freeze triggered by the COVID-19 pandemic.
This major slump now casts serious doubt on Zimbabwe's ambitious US$5 billion annual tourism revenue target, as confidence among investors deteriorates and funding for operators dries up.
Preliminary data from the Zimbabwe Tourism Authority (ZTA) confirms the scale of the blow. International arrivals plunged by 9% to 336,369, while domestic tourism declined by 18%, falling from nearly two million last year to 1.6 million.
The downturn is further compounded by a US$2 million drop in new investments, with many operators battling high interest rates and reduced consumer spending power.
"Tourism's 16% receipts contraction directly reduces quarterly GDP by 0.09%," warned Stevenson Dhlamini, an economics lecturer at the National University of Science and Technology (NUST). "When you apply the sector's 3.2x multiplier effect, the economy could be losing close to US$125 million - about 0.3% of GDP."
He cautioned that the nation's 5% GDP growth target for 2025 is now under threat, potentially falling to 3.8% if the trend continues.
While the broader outlook appears bleak, Victoria Falls remains a rare bright spot. Anald Musonza, Head of Sales and Marketing at Africa Albida Tourism, noted only a marginal dip in performance.
"Here in Vic Falls, occupancy rates were slightly lower - less than 2% down compared to last year," said Musonza. "We saw very good figures across both large hotels and small operators."
Still, national hotel room occupancy fell to 37%, down from 39% last year, underlining dwindling demand.
ZTA data shows stark regional variations. European arrivals collapsed by 35%, with even steeper drops from Nordic countries (65%), Switzerland (46%), and Italy (43%). The Oceania region (Australia and New Zealand) posted a sharp 51% decline, likely linked to air travel challenges.
In contrast, Asia posted surprising gains. Visitors from Malaysia surged 135%, Japan 86%, and China/Hong Kong 26%, possibly benefiting from improved bilateral ties or flight resumption.
Commenting on the wider context, Chenayi Mutambasere of the Africa Centre for Economic Justice pointed to deeper structural issues.
"High visa fees, poor perceptions, expensive travel, and underdeveloped infrastructure are major barriers," she said. "Tourism doesn't survive on airport upgrades alone - safety, clean water, stable electricity, and credible governance are non-negotiables."
The tourism crisis mirrors broader economic turbulence. In April, it was revealed that despite higher output, mining forex earnings fell by 27% in Q1, wiping out US$204 million in potential inflows due to weak global prices and logistical bottlenecks.
Meanwhile, business confidence is shrinking. A leaked memo from a closed-door meeting between the Zimbabwe National Chamber of Commerce and RBZ Governor John Mushayavanhu exposed deep dissatisfaction. Many firms said they were being choked by high lending rates (40%–47%) and scarce affordable credit.
Efforts to reach Tourism Minister Barbara Rwodzi for comment were unsuccessful.
As regional competitors rebound - South Africa posted a 3% increase in Q1 overseas arrivals - Zimbabwe risks falling further behind unless urgent reforms are implemented.
"The US$5 billion tourism target is now wildly optimistic," said Dhlamini. "Stabilising near 2018's peak of US$1.3 billion this year would be a more realistic goal - laying a solid foundation for the future."
For now, however, Zimbabwe's tourism sector is navigating through stormy waters - and the path to recovery looks long and uncertain.
According to official figures obtained by the Zimbabwe Independent, tourism receipts fell sharply by 16% to US$202 million, compared to US$241 million in the same period last year. The drop translates to losses of over US$440,000 per day - marking the worst quarterly performance since the global travel freeze triggered by the COVID-19 pandemic.
This major slump now casts serious doubt on Zimbabwe's ambitious US$5 billion annual tourism revenue target, as confidence among investors deteriorates and funding for operators dries up.
Preliminary data from the Zimbabwe Tourism Authority (ZTA) confirms the scale of the blow. International arrivals plunged by 9% to 336,369, while domestic tourism declined by 18%, falling from nearly two million last year to 1.6 million.
The downturn is further compounded by a US$2 million drop in new investments, with many operators battling high interest rates and reduced consumer spending power.
"Tourism's 16% receipts contraction directly reduces quarterly GDP by 0.09%," warned Stevenson Dhlamini, an economics lecturer at the National University of Science and Technology (NUST). "When you apply the sector's 3.2x multiplier effect, the economy could be losing close to US$125 million - about 0.3% of GDP."
He cautioned that the nation's 5% GDP growth target for 2025 is now under threat, potentially falling to 3.8% if the trend continues.
While the broader outlook appears bleak, Victoria Falls remains a rare bright spot. Anald Musonza, Head of Sales and Marketing at Africa Albida Tourism, noted only a marginal dip in performance.
"Here in Vic Falls, occupancy rates were slightly lower - less than 2% down compared to last year," said Musonza. "We saw very good figures across both large hotels and small operators."
Still, national hotel room occupancy fell to 37%, down from 39% last year, underlining dwindling demand.
ZTA data shows stark regional variations. European arrivals collapsed by 35%, with even steeper drops from Nordic countries (65%), Switzerland (46%), and Italy (43%). The Oceania region (Australia and New Zealand) posted a sharp 51% decline, likely linked to air travel challenges.
In contrast, Asia posted surprising gains. Visitors from Malaysia surged 135%, Japan 86%, and China/Hong Kong 26%, possibly benefiting from improved bilateral ties or flight resumption.
Commenting on the wider context, Chenayi Mutambasere of the Africa Centre for Economic Justice pointed to deeper structural issues.
"High visa fees, poor perceptions, expensive travel, and underdeveloped infrastructure are major barriers," she said. "Tourism doesn't survive on airport upgrades alone - safety, clean water, stable electricity, and credible governance are non-negotiables."
The tourism crisis mirrors broader economic turbulence. In April, it was revealed that despite higher output, mining forex earnings fell by 27% in Q1, wiping out US$204 million in potential inflows due to weak global prices and logistical bottlenecks.
Meanwhile, business confidence is shrinking. A leaked memo from a closed-door meeting between the Zimbabwe National Chamber of Commerce and RBZ Governor John Mushayavanhu exposed deep dissatisfaction. Many firms said they were being choked by high lending rates (40%–47%) and scarce affordable credit.
Efforts to reach Tourism Minister Barbara Rwodzi for comment were unsuccessful.
As regional competitors rebound - South Africa posted a 3% increase in Q1 overseas arrivals - Zimbabwe risks falling further behind unless urgent reforms are implemented.
"The US$5 billion tourism target is now wildly optimistic," said Dhlamini. "Stabilising near 2018's peak of US$1.3 billion this year would be a more realistic goal - laying a solid foundation for the future."
For now, however, Zimbabwe's tourism sector is navigating through stormy waters - and the path to recovery looks long and uncertain.
Source - Zimbabwe Independent
