Mozambique’s city hotel sector has had to adopt new strategies to address falling demand due to the fear of political instability along with infrastructure shortages, limited access and lack of marketing. Hotel occupancies across the country are currently around 30%, according to the Mozambique Federation of Hotels and Tourism.
Nadira Khan, Sales Manager of Melia Maputo Sky, a corporate hotel in Maputo, said the property is one of many hotels experiencing lack of demand not only from its biggest market – the South African corporate market – but also from other international markets.
The 10th FIKANI International Tourism Fair in Maputo revealed that South Africa is the main country of origin for visiting tourists, representing 33.5% of all arrivals, followed by Portugal with 10.3% and the UK and the US with 6.2% each.
“We are not seeing increases in demand for MICE facilities and hotels because, this year, we have elections and that is causing a little damage to the market. Although we did have a small increase, it was not as much as we expected,” said Khan.
“Demand is low and we are competing with other hotels. We have some neighbouring five star-hotels charging the same prices as those with three stars. Melia has had to create packages with conference facilities and accommodation to try and attract clients.”
Khan said the majority of Melia’s corporate business, which usually peaked between September and November, pushed events to August and September to avoid the post-election environment. Elections are set for October 9.
However, Khan told Tourism Update that, regardless of the elections, the Mozambican hotel and tourism industry faces another set of problems: lack of infrastructure, resources and marketing.
FDI is strong but government needs to come to the table
Mozambique’s President Filipe Nyusi said, on August 8 during his opening speech at FIKANI, the country secured about US$940 million for the development of the tourism industry, including hospitality, in 2023.
Khan said government had neither invested in the development of basic road, water and electricity infrastructure to boost tourism nor marketing the country and its destinations to attract more guests.
Vasco Manhiça, Director of the Mozambique Federation of Hotels and Tourism, admitted the hotel and tourism industries faced challenges due to the Covid-19 pandemic as well as lack of basic infrastructure, international exposure and access.
“Mozambique tourism’s biggest challenge has been recovering from the pandemic. Pre-Covid, hotels had an average occupancy rate of 50%. Now the slow recovery means occupancy rates have only recovered to about 30%.”
He said lack of demand was causing sky-high airfares and worsening air access to the destination.
“Affordable and accessible air travel can significantly boost tourist arrivals, making it easier for domestic and international tourists to visit Mozambique. Lower airfares would encourage more frequent travel, especially from neighbouring countries and within the region,” said Manhiça.
Manhiça and Khan believe one of the keys to improving occupancy and attracting more travellers is marketing, showcasing the country’s natural and cultural attractions. Digital marketing and social media could diversify the audience and the country could promote more cultural events and event packages, such as the Melia MICE packages, to attract more tourists and accelerate tourism’s recovery.
“In terms of marketing, we want to implement effective campaigns at national, regional and international levels, highlighting the cultural and natural diversity that Mozambique has to offer,” said Manhiça.
Tourism Update