Accommodation and Food Service
Accommodation and Food Service
Overview
The accommodation and food service sector provides a range of services to both local customers and tourists, including hotel and restaurant services. The sector benefits from the country’s tourism industry and supportive consumer behaviour. Zambia is home to several tourist hotspots such as the Victoria Falls and the Kafue National park, and borders eight markets in southern and central Africa making it well located for regional and intercontinental tourism. To this effect, tourist arrivals are expected to increase to beyond pre-pandemic levels and reach 1,240,000 by 2025 which will drive demand in the sector. Zambian consumers spend the highest percentage of their income (31% in 2022) in the food and non-alcoholic beverages segment and spending in this category is expected to increase to US$4.1bn by 2025 which will drive demand in the food service sub-sector.
However, with only a 0.7% contribution to the economy in 2022, the full potential of the sector is yet to be actualized. A disinclination towards data utilization and a poor understanding of the various customer segments are some of the challenges holding back growth. At Red Black Ventures, we keep a close eye on market trends, dependencies, gather data and work with businesses to develop effective strategies to help them succeed in the sector across all levels of the value chain.
Accommodation & Food Service by the numbers
Contribution to GDP by Sector, Zambia (%)
![](https://redblackventures.com/wp-content/uploads/2023/02/Accomodation-Food-Service-Waterfall-07.02.23.png)