BMI View: We hold a generally positive outlook for the Zimbabwean tourism sector over the course of ourforecast period to 2021, due to growing arrivals from Asia and outside Africa. Nevertheless, the outlook for2017 is subdued, mainly because of the continued influence of the 15% VAT on tourist accommodation. Weexpect regional arrivals to decrease in the short term as travel becomes more expensive, while overseasarrivals are forecast to increase. Even though Zimbabwe has great potential to become a tourist hubthrough its vast array of attractions, this potential is hindered by unsophisticated travel routes, poorinfrastructure and adverse policies deterring international investments.
Key Updates And Forecasts
The introduction of bond notes in February, a new cash regime introduced in order to stem the liquiditycrisis, will likely improve the ease of transactions in Zimbabwe for tourists. Given that banks can also lendin the new currency, investment is also likely to see some improvement.