The Costs and Pricing of Tourism in Zambia: The Case of Livingstone

"Tourism is potentially one of Zambia’s best prospects for economic diversification and growth. The tourism sector has the potential to play an increasingly important role in stimulating economic growth by contributing to job creation, foreign exchange earnings, entrepreneurial development, infrastructural development, improvements to rural areas and communities, and more. This study seeks to make a modest contribution to informing tourism policy and strategies by taking a disaggregated look at the cost and price structures of tourism service operations in one of Zambia’s key tourism destinations and comparing them with the structures in a proximate competitor region. By benchmarking tourism services in Livingstone against those in Victoria Falls town (on the other side of the Zimbabwean border), it captures detailed data on prices, inputs (labour, main service ingredients), food and beverages, overheads and other establishment performance indicators. The services considered include: accommodation (hotels and lodges); food and beverages (restaurants, diners, pubs/bars, cafes, etc); adventure tourism (water rafting, water cruises, micro flights); and wildlife safaris (nature walks, game drives, safaris)."