Hospitality sector in mixed fortunes

Reshaping Malawi’s Hospitality Landscape: Opportunities and Challenges for Business Growth

Post was last updated: October 3, 2025

Key Business Points

  • Malawi’s hospitality sector has shown mixed results in the first half of the year, with leading players such as Sunbird Tourism plc and Blantyre Hotels plc (BHL) posting profits despite subdued revenue due to challenging economic conditions.
  • The sector’s resilience post-Covid-19 pandemic is notable, with 70 000 jobs added, K62.7 billion in investments, and a 6.7 percent contribution to the country’s gross domestic product (GDP), according to the Malawi Government Annual Economic Report 2025.
  • Innovation and targeting new markets are crucial for the sector’s continued growth, with experts urging players to be innovative and supplement existing markets to ensure resilience in the face of challenges such as high inflation and interest rates.

The hospitality sector in Malawi has faced a tumultuous first half of the year, with major players struggling to navigate the challenges posed by the closure of the United States Agency for International Development (USaid) and rising inflation. Despite these difficulties, Sunbird Tourism plc and Blantyre Hotels plc (BHL) have managed to post profits, with Sunbird Tourism plc recording a profit of K5.4 billion and BHL registering a profit of K3.4 billion. However, revenue for both companies was subdued, with BHL’s revenue largely driven by finance income from its recent rights issue.

The closure of USaid has had a significant impact on the sector, with US government changes in international aid affecting demand for hospitality services. Additionally, high interest rates and inflation have raised operating costs by 33 percent to K12.5 billion, according to Sunbird Tourism plc. The company noted that the economic environment for the reporting period was challenging, characterized by high interest rates, a shortage of foreign currency, and high inflation, which drove up operating costs and affected demand for hotel products and services.

However, despite these challenges, the sector has shown strong signs of recovery, with the Malawi Tourism Council reporting a significant increase in the sector’s contribution to GDP and job creation. The sector’s contribution to GDP more than doubled in 2024 to K865.2 billion from K394.7 billion during the pandemic period in 2020. According to Malawi Tourism Council executive director Memory Kamthunzi, the sector’s resilience and renewed investor confidence are notable, and the rise in employment figures highlights the sector’s role in economic revitalization.

While major hospitality establishments, airlines, and tour operators have rebounded well, many small and medium enterprises (SMEs) are still struggling with financial constraints, low capacity utilization, and operational challenges. In a separate interview, Orbis Destination Management Company managing director Innocent Kaliati noted that tourist figures have surpassed pre-pandemic levels, with 1.1 million visitors in 2024, but the post-pandemic recovery remains slow. Kaliati emphasized the need for Malawi to target new markets to supplement existing ones and drive growth in the sector.

Financial expert Brian Kampanje analyzed the financial results of the two hospitality players and noted that their performance is better considering the acute inflationary macroeconomic environment. However, he urged the players to be innovative to ensure resilience going forward, citing the need for the sector to be more innovative in the face of challenges. On the Malawi Stock Exchange (MSE), the tourism sector players have registered marginal share value and market capitalization gains over the years, with Sunbird and BHL share prices at K500 and K15, respectively. As the sector continues to navigate the challenges ahead, innovation and adaptability will be key to driving growth and ensuring the long-term sustainability of Malawi’s hospitality sector. Kukhala kwambiri, or perseverance, will be essential for businesses in the sector to thrive in the face of adversity.

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Vanessa Banda
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