ZDA PRIORITY SECTOR

Tourism & Hospitality

LevrAge Sector Report: Tourism & Hospitality (2025)

1.5M visitors
Victoria Falls
~7%
Tourism GDP
45% avg
Hotel Occupancy
20 national
Wildlife Parks
HomeSectorsTourism & Real Estate
1.5M visitors
Victoria Falls
~7%
Tourism GDP
45% avg
Hotel Occupancy
20 national
Wildlife Parks

Executive Summary

  • **Underdeveloped gem.** Victoria Falls, 20 national parks, Lake Kariba, Zambezi River—world-class assets with only 1M+ annual visitors (vs. Kenya's 2M+, SA's 15M). Massive upside.
  • **Infrastructure bottleneck = PPP opportunity.** Hotel capacity gaps, inadequate airports/roads, limited safari lodges create openings for BOT hospitality, aviation upgrades, and eco-lodge development.
  • **KAZA TFCA integration.** Kavango-Zambezi Transfrontier Conservation Area (5-country, 520K km²) creating cross-border tourism circuits—Zambia positioned as KAZA's hub.
  • **Eco-tourism and community tourism rising.** Conservation finance, carbon credits, and community-based tourism attracting impact investors and DFI blended finance.
  • **ZECS competitive advantage.** Investors with hospitality track records, community partnerships, and sustainability certifications secure prime concessions and fast-track zoning approvals.

ZDA Investment Landscape

Why Tourism Matters to Zambia

Strategic Position:

  • Victoria Falls: One of the Seven Natural Wonders (1.5M visitors annually)
  • 20 national parks: South Luangwa, Lower Zambezi, Kafue (diverse wildlife)
  • Lake Kariba: World's largest man-made lake (houseboats, fishing, resorts)
  • KAZA TFCA: 5-country conservation area (Zambia, Zimbabwe, Botswana, Namibia, Angola)

Government Priorities

8th National Development Plan (8NDP) Focus:

  • Increase tourism's GDP contribution to 15%
  • Develop community-based and eco-tourism models
  • Upgrade tourism infrastructure (hotels, lodges, airports)
  • Enhance wildlife conservation and anti-poaching efforts
  • Promote Zambia as KAZA's adventure capital

Investment Incentives & Policy Framework

Tourism Investment Incentives:

  • 5-year corporate tax holiday for tourism enterprises (hotels, lodges, tour operators)
  • Zero-rated VAT on tourism equipment and vehicles
  • Land concessions: Long-term leases in national parks and Game Management Areas (GMAs)
  • Accelerated depreciation for hospitality infrastructure
  • PPP opportunities: Airport upgrades, conference facilities, theme parks

Priority Tourism Segments:

  • Eco-lodges and safari camps (national parks and GMAs)
  • Luxury hotels and resorts (Livingstone, Lusaka, Lake Kariba)
  • Adventure tourism (rafting, bungee, canoeing, hiking)
  • Conference and MICE facilities
  • Cultural and heritage tourism
  • Agritourism and farm stays

Sector Statistics

  • Annual Visitors: 1M+ (targeting 3M by 2030)
  • Tourism GDP: ~7% (targeting 15%)
  • Employment: 200K+ direct and indirect jobs
  • Hotel Capacity: 12K rooms (needs 30K by 2030)
  • Average Stay: 7-10 days
  • FDI Target: $1.5B in tourism infrastructure (2025-2030)

ZECS Readiness Requirements

To be competitive for concessions, hotel licenses, and tourism tenders:

Regulatory & Compliance Pathway (20% of ZECS score)

What you need
  • Tourism enterprise license or concession application
  • Environmental Impact Assessment (EIA) for development
  • Zambia Wildlife Authority (ZAWA) permits (for GMAs)
  • Tourism Council of Zambia (TCZ) membership
  • Health and safety certifications
Red flags
  • Unclear land tenure or concession rights
  • Missing conservation and environmental management plans
  • No community consultation records
  • Incomplete waste and water management plans
Best practices
  • Engage with Ministry of Tourism early
  • Partner with local tour operators and hospitality firms
  • Plan for eco-certifications (Green Tourism, Fair Trade)
  • Invest in community benefit-sharing programs

Local Partner Fit (20% of ZECS score)

What you need
  • Zambian tourism operator or hospitality partner
  • Community benefit-sharing agreement
  • Local employment and training program
  • Supply chain linkages (local food, crafts, services)
  • Conservation and anti-poaching support
Best practices
  • Co-invest with established Zambian lodge operators
  • Engage local communities for cultural tourism programs
  • Create guide and hospitality training programs
  • Support conservation initiatives (wildlife corridors, anti-poaching)

Financial Preparedness (15% of ZECS score)

What you need
  • Bankable business plan with occupancy projections
  • CapEx breakdown (construction, equipment, marketing)
  • Tour operator partnerships or distribution agreements
  • DFI engagement (AfDB, IFC, USAID, conservation finance)
  • Working capital and seasonal finance plan

LevrAge Facilitation Pathway

Phase 1: Entry Strategy (60-90 days)

Our Role:

  • Map tourism concessions and land availability
  • Identify suitable joint venture partners (lodge operators, tour companies)
  • Assess market positioning and target segments
  • Facilitate introductions to Ministry of Tourism and TCZ

Deliverables:

  • Tourism entry roadmap
  • Concession assessment and site selection
  • Regulatory checklist and timeline

Phase 2: Stakeholder Engagement (90-180 days)

Our Role:

  • Coordinate meetings with Ministry of Tourism and ZAWA
  • Facilitate community consultations and benefit-sharing agreements
  • Connect with tour operators and travel agents
  • Arrange site visits and market assessments

Phase 3: Deal Structuring (180-360 days)

Our Role:

  • Concession lease negotiation support
  • Tour operator partnership facilitation
  • DFI and impact finance introductions
  • Construction and hospitality management support

Typical Timeline: 18-36 months from concession to lodge opening

Active Opportunities

Featured Project: Luxury Safari Lodge (Lower Zambezi)

Investor: Boutique hospitality group
Facility: 24-room luxury tented camp
Location: Lower Zambezi National Park (GMA concession)
Stage: Land allocated, EIA approved
Investment: $8M
Systemic Value Score: 72% (High Impact)

Why It Matters:

  • Premium safari experience ($800-1,200/night)
  • Community co-management and revenue sharing
  • 80+ jobs (guides, hospitality, conservation)
  • Carbon-neutral operations (solar + biogas)
  • Conservation levy supports anti-poaching

ZECS Status: Verified (Silver tier)


Featured Project: Adventure Tourism Complex (Livingstone)

Investor: Adventure tourism consortium
Facility: Multi-activity center (rafting, bungee, zip-line, helicopter)
Location: Livingstone (Victoria Falls gateway)
Stage: Feasibility
Investment: $15M
Systemic Value Score: 79% (High Impact)

Why It Matters:

  • Captures high-value adventure travelers
  • Year-round operations (not seasonal)
  • 200+ jobs (guides, safety, hospitality)
  • Integrates with local tour operators
  • Boosts Livingstone's positioning vs. Zimbabwe

ZECS Status: In Process (targeting Gold tier)

Sector Outlook & Trends

2025-2030 Opportunities

Accommodation Development

  • Luxury safari lodges and tented camps
  • Mid-market hotels and guesthouses
  • Eco-lodges and treehouse resorts
  • Houseboats and floating lodges (Lake Kariba)

Tourism Experiences

  • Adventure tourism (rafting, bungee, zip-line, hiking)
  • Wildlife safaris (walking, game drives, canoe)
  • Cultural and heritage tours
  • Birdwatching and photographic safaris

Tourism Infrastructure

  • Airport upgrades and aviation services
  • Road access to parks and lodges
  • Conference and MICE facilities
  • Theme parks and entertainment venues

Supporting Services

  • Tour operator and DMC services
  • Ground handling and logistics
  • Hospitality training academies
  • Conservation and guiding services

Key Success Factors

Secure prime concessions early (best GMAs fill fast)
Design for sustainability (eco-certifications = premium positioning)
Partner with communities (social license is critical)
Invest in conservation (wildlife = asset, protect it)
Market regionally (South Africa, Europe, North America)

Next Steps

For Investors

For Partners

Sources & References
  • Zambia Development Agency (ZDA): Tourism sector profiles
  • Ministry of Tourism: National Tourism Policy
  • Zambia Wildlife Authority (ZAWA): Park concessions and permits
  • Tourism Council of Zambia (TCZ): Industry statistics
  • KAZA TFCA Secretariat: Transfrontier conservation area development
  • LevrAge Resources: Zambia Investment Roadshow 2025 Results, ZECS Methodology

Disclaimer

This sector brief is provided for informational purposes and reflects publicly available data from ZDA and government sources. It does not constitute investment advice, legal guidance, or an endorsement by the Zambia Development Agency or Government of Zambia.

Last Updated: October 12, 2025
Contact: LevrAge Strategy & Solutions | info@levrage.solutions

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