Hotels - Malawi | Statista Market Forecast

It is projected that Malawi's Hotels market will see a revenue of US$51.62m by 2024.
This sector is expected to exhibit an annual growth rate of 8.13% between 2024 and 2029, resulting in a projected market volume of US$76.30m in 2029.
The number of users in this market is predicted to reach 788.90k users by 2029.
In 2024, user penetration is expected to be 2.5%, which is expected to increase to 3.2% by 2029.
The average revenue per user (ARPU) is anticipated to be US$96.46.
By 2029, it is expected that 70% of the total revenue in the Hotels market will be generated through online sales.
In a global context, United States is expected to generate the highest revenue, with US$111bn projected in 2024.
Malawi's hotel industry is seeing growth with new luxury hotels and lodges opening up to cater to the increasing number of tourists visiting the country.

Definition:

The Hotels market includes hotels and professionally-run guest houses. These accommodations can be booked directly via the providers website, through a tour operator, a travel agency, an online travel agency (OTA), or by telephone.

Additional Information:

The main performance indicators of the Hotels market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues. Users represent the aggregated number of guests. Each user is only counted once per year. Well-known providers are Hotels.com, trivago, and Booking.com.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

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Booked directly via the providers website, through a tour operator, an online travel agency (OTA), a travel agency or by telephone

Private accommodation and holiday flats, private room and accommodation rentals (e.g. Airbnb)

The Hotels market in Malawi is experiencing significant growth and development, driven by various factors influencing customer preferences and local special circumstances.

Customer preferences: Travelers in Malawi are increasingly looking for unique and authentic experiences, leading to a rising demand for boutique hotels and eco-friendly accommodations. Tourists are also placing a high value on personalized services and cultural immersion, influencing their choice of accommodation.

Trends in the market: One prominent trend in the Malawian Hotels market is the expansion of international hotel chains into the country, catering to the growing number of business travelers and tourists. This trend is not only increasing the overall capacity of the market but also raising the standards of service and facilities available to customers.

Local special circumstances: Malawi's unique natural attractions, such as Lake Malawi and national parks, are driving the growth of the Hotels market as more tourists visit the country for its wildlife and scenery. This has led to a proliferation of safari lodges and luxury resorts in key tourist destinations, capitalizing on the country's natural beauty.

Underlying macroeconomic factors: The improving economic conditions in Malawi, coupled with government efforts to promote tourism and foreign investment, are supporting the growth of the Hotels market. As the country's infrastructure continues to develop and connectivity improves, more international visitors are choosing Malawi as a travel destination, further boosting the demand for hotel accommodations.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.

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