CONTENTS PAGE DEFINITIONS 3 GLOBAL ECONOMIC OVERVIEW 4 - 5 GLOBAL TOURISM OVERVIEW 6 - 8 NATIONAL ECONOMIC OVERVIEW 9 OVERVIEW OF TOURISM PERFORMANCE IN ZIMBABWE 10 - 13 TOURISM ECONOMIC INDICATORS (SUMMARY) 14 - 16 ANALYSIS OF FOREIGN TOURIST ARRIVALS 17 - 24 Foreign Tourist Arrivals Trend: 1964 – 2015 18 Tourist Arrivals from Overseas: 2015/2014 19 - 20 Tourist Arrivals from Mainland Africa: 2015/2014 20 - 21 Tourist Arrivals Market Share by Region: 2015/2014 22 ANALYSIS OF TOURIST ARRIVALS BY SOURCE MARKET: 2015/2014 23 - 28 Top 10 Overseas Markets 29 Top 10 African Markets 30 PROFILE OF FOREIGN TOURISTS: 2015/2014 31 - 34 Purpose of Visit 32 Mode of Transport 33 - 34 AIRLINE STATISTICS 35 – 37 Annual Market Share by Airline (table) 36 Annual Market Share by Airline (graph) 37 ACCOMMODATION UTILIZATION STATISTICS: 2015/2014 38 Annual Average Room Occupancies in major Regions 39 Average Room Occupancy Rates by Region (table) 40 Average Bed Occupancy Rates by Region (table) 41 Average Room Occupancies by Region (graph) 42 Average Bed Occupancies by Region (graph ) 42 Room & Bed Capacity by Region (table) 43 Room & Bed Capacity Shares by Region (graph) 43 TOURISM REVENUE 44 – 45 Tourism Receipts Trend: 2006 – 2015 (graph) 45 NATIONAL PARKS & WILDLIFE STATISTICS - 2015 46 - 48 Tourist Arrivals by National Park 47 Clientele Composition – Top 10 National Parks 48 Arrivals Market Share – Top 10 National Parks 48 CONCLUSION 49 For reasons of comparability and consistency the Zimbabwe Tourism Authority uses International definitions as given by the United Nations World Tourism Organization (UNWTO). Some of the definitions used are: Tourist: A tourist is a traveler who takes an overnight trip outside his/her usual environment, for less than a year, for any main purpose (business, leisure or other personal purpose) other than to be employed by a resident entity in the country or place visited. Same–day Visitor: A visitor who does not spend a night in a collective or private accommodation in the country visited. Arrivals: All data refer to arrivals and not actual number of people traveling. One person visiting the same country several times during the year is counted each time as a new arrival. Likewise the same person visiting several countries during the same trip is counted each time as a new arrival. ABBREVIATIONS & ACRONYMS USED AfDB - Africa Development Bank GDP – Gross Domestic Product ICASA - International Conference on AIDS and STI’s In Africa IMF – International Monetary Fund IRTS 08 - International Recommendations for Tourism Statistics 2008. ITU - International Telecommunications Union. MW – Mega Watt. OPEC - Organization of Petroleum Exporting Countries UAE – United Arab Emirates UNWTO – United Nations World Tourism Organization. USA – United States of America. ZTA – Zimbabwe Tourism Authority 2 | P a ge Global Economic Overview The Global economic growth, which was estimated at 3.1 percent in 2015, is projected at 3.4 percent in 2016 and 3.6 percent in 2017 according to the IMF Global Outlook. This is a positive prospect considering that tourism thrives in a stable and growing economy. This means the performance of global tourism is likely to be sustained as forecasted by the UNWTO’s vision 2020. Three Key Transitions That Continue To Influence the Global Economy 1. The Slowdown in Chinese Economy According to IMF Global Outlook, China has been experiencing a faster-than-expected slowdown in imports and exports, in part reflecting weaker investment and manufacturing activity in that economy. These developments, together with market concerns about the future performance of the Chinese economy, will continue to have spillovers to other economies through trade channels and weaker commodity prices, as well as through weakening confidence and increasing volatility in financial markets. Manufacturing activity and trade also remain weak globally, reflecting not only developments in China but also the subdued global demand and investment. 2. Lower prices for energy and other commodities Oil prices have declined markedly since September 2015, reflecting expectations of sustained increases in production by Organization of Petroleum Exporting Countries (OPEC) members, amid continued global oil production in excess of oil consumption. This is especially so following the lifting of sanctions on Iran. Oil prices continued to fall in 2016 with the oil prices hitting the US$28 per barrel from an average of US$35 in 2015. As a result of the fall in oil prices, other commodities, especially metals, have fallen as well. 3 | P a ge The Gradual Tightening In U.S. Monetary Policy and the Appreciation of the Dollar The prospects of a gradual increase in policy and interest rates in the United States as well as bouts of financial volatility amid concerns about emerging market growth prospects, have contributed to tighter external financial conditions, declining capital flows, and further currency depreciations in many emerging market economies. The US economy is anticipated to continue growing in 2016 after it unexpectedly expanded at a faster pace in the fourth quarter than initially estimated. As such, the greenback is also expected to continue appreciating in 2016. This further appreciation of the dollar will put additional pressures on firms in emerging market economies. (Source: IMF Global Outlook) The appreciation of the dollar and the growth of the American economy will prospectively trigger increased travel propensity of that market increasing global outbound travel. Considering that USA is currently Zimbabwe’s largest overseas market, the increased American outbound could translate into more overseas arrivals into Zimbabwe. 4 | P a ge Global Tourism Overview International Tourist Arrivals International tourist arrivals grew by 4.4% in 2015 to reach a total of 1,184 million in 2015, according to the January 2016 Edition of the UNWTO’s World Tourism Barometer. According to this report the year 2015 marks the 6th consecutive year of above-average growth, with Growth: international arrivals increasing by 4% or more every year since the post-crisis year of 2010. 4.4% Total By region, Europe, the Americas and Asia and the Pacific all recorded around 5% growth in Arrivals: 2015. Arrivals to the Middle East increased by 3% while in Africa, limited data available, 1.184 Billion points to an estimated 3% decrease, mostly due to weak results in North Africa, which accounts for over one third of arrivals in the region. The continued effects of the Ebola epidemic during the year also aided in the decline to a great extent. The strongest growth in 2015 was registered by Europe, the Americas and Asia & the Pacific at 5% Arrivals into Africa declined by 3%. International Tourism Indicators Source: UNWTO 5 | P a ge Global Developments Affecting Tourism Zika Outbreak The Zika virus is changing Americans’ travel plans, with 4 in 10 people saying they are now less likely to visit South America or the Caribbean according to the Reuters/Ipsos survey. The survey found that the more people learn about Zika, the more they fear the mosquito-borne virus, which doctors warned may be linked to the current spate of birth defects in Brazil. The Zika outbreak is therefore likely to shift tourist preferences to other parts of the world other than South America. However, given the widespread belief that mosquitoes are the principal transmitters of the virus, tourists are likely to shun known mosquito infested areas, such as Southern Africa, including Zimbabwe Growing Trends Of Terrorism Global tourism arrivals continue to soar despite the increase in terrorist activities. For instance arrivals to the Middle East grew by 5% in 2015 in spite of the conflicts going on especially in Syria, Turkey and Iraq due to ISIS. The number of terrorism-related deaths worldwide increased dramatically between 2013 and 2014, and 2015 was marked by two shocking terror attacks in Paris. First it was the Charlie Hebdo shooting in January 2015 then the Paris attack of November 2015. Ironically despite all this, France remained the number one tourist destination in the world in 2015 receiving 83 million foreign tourists. Tourism Facilitation in Africa - Visa According to the Africa Visa Openness Report published by the Africa Development Bank (ADB), Southern Africa lags behind in the visa openness index. According to the same report 75% of countries in the top 20 most visa-open countries are in West Africa and East Africa. 6 | P a ge In southern Africa only four destinations, namely Madagascar, Mauritius, Mozambique and Zambia managed to make it into the top 20 most visa-open countries list. In terms of e-visas only 9% of the African nations have an e-visa in place and these include Zimbabwe. In spite of this strength Zimbabwe ranks 27 out of 52 countries ranked in Africa. This goes to show that although efforts are being wielded in easing visa requirements for the country, a lot still need to be done. For instance, while the top 15 visa-open destinations require no visa in advance (except Mauritius and Djibouti), Zimbabwe requires 67% of the tourism markets in the world to apply for a visa in advance. . The Top 20 Most Visa-Open Countries Source: Africa Visa Openness Report 2016 (AfDB) 7 | P a ge National Economic Overview . Overall economic performance in 2015 registered a 1.5% growth, remaining depressed during the period under Growth: revie. w . Positive developments were recorded in 1.5% construction and communication, with some setbacks in tourism, agriculture and Mining according to the Ministry of Finance. Sectorial Growth (%) Note: Whilst part of tourism is included in hotels and restaurants some components are included in other sectors e.g. tour operators in transport, trophy processing in manufacturing while hunting and fishing is under agriculture. Hence the need for a TSA to enable proper accounting of tourism’s contribution to the main economy. Inflation The annual inflation rate closed at -2.47% in December 2015. The unrelenting deflation continues to pose a threat to the economy and the tourism sector in particular, as it limits expenditure. Although the deflation may indicate a drop in consumer prices, domestic tourism has remained restrained as a result of low disposable incomes. 8 | P a ge Overview Performance of Tourism in Zimbabwe Tourist Arrivals Tourist arrivals increased by 9% to 2 056 588 during year 2015, compared to 1 880 028 in 2014 with all markets performing positively except for Asia and the Arrival Growth: 9% Middle East which declined. The growth in arrivals into Zimbabwe was generally backed by growth in the country’s traditional overseas source markets such as Total Arrivals: 1 880 028 UK and USA and compounded with the positive performance of Mainland Africa. Performance by Global Regions 9 | P a ge
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