Katse Tourist Village
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Invest in Lesotho’s
Katse Tourist Village
The Katse Tourist Village presents a landmark Public-Private Partnership (PPP) opportunity to develop a premier, integrated eco-adventure destination on the shores of the Katse Dam—Africa’s second-largest reservoir by volume.
Introduction
With Lesotho’s international arrivals surging 30.9% in 2024 to over 960,000 visitors, and the Katse Dam already attracting a significant share of extended-stay tourists, the project addresses a clear market gap.
The Katse Tourist Village is a proposed flagship tourism development located on the scenic banks of the iconic Katse Dam in the Maluti Mountains. This integrated, greenfield project is designed to be a premier destination, delivered through a PPP structure where the investor-operator leads design, financing, development, and management.
The project aims to unlock the vast potential of Lesotho’s highland landscapes for domestic, regional, and international tourists, offering an unparalleled mix of luxury, adventure, and nature.
The project comprises:
• A 4-star eco-lodge and chalet accommodation
• A luxury double-deck cruise boat for lake experiences
• A portfolio of signature attractions and experiences
• Integrated destination services and retail
The public partner will facilitate land access, permitting, utilities coordination, and destination marketing linkages.
The project is located at the Katse Dam in the Lesotho Highlands.
Strengths & Opportunities
The PPP model ensures investor-operator control over design, financing, and management, with public partner support on land, permits, and marketing.
Market Evidence
Strong Tourism Recovery:
Lesotho’s tourism sector is in a robust upswing, with international arrivals almost 1 million in 2024 – a 30.9% year-on-year growth and 84% of pre-pandemic levels. This demonstrates significant and accelerating demand.
Proven Destination Appeal:
The Katse Dam is already a established attraction, with data showing 20.4% of its visitors are day-trippers, indicating strong latent demand for extended-stay facilities. A significant portion of visitors stay for 4 days or more, revealing a market for premium, immersive experiences.
Untapped Product Niche:
There is no comparable inland cruise or integrated alpine lake resort in the SADC region. This first-mover advantage allows Katse Tourist Village to capture a unique market position, catering to the 74.3% of visitors whose primary purpose is leisure and holidays.
Strategic Source Markets:
South Africa constitutes 89.6% of all arrivals, providing an immediate and accessible market. Growing numbers from the USA, India, China and other regional and international markets present opportunities for long-haul tourism diversification.
Strategic Advantages
Iconic Natural Asset:
The Katse Dam is an engineering marvel and a scenic masterpiece, set at 2,000 meters in the pristine Maluti Mountains. Its vast water surface is ideal for water sports and cruise operations, offering a unique alpine aquatic experience.
Government Support & Incentives:
The project is fully aligned with the Lesotho Tourism Development Corporation’s (LTDC) strategic priorities.
Investors benefit from:
• Facilitated long-term land leases of up to 99 years.
• Support through the One-Stop Business Facilitation Centre for streamlined licensing.
• A conducive investment climate with potential for targeted incentives.
The ‘Experience Elevation’ Brand:
Lesotho’s unique high-altitude identity provides a powerful branding narrative, enabling year-round marketing from summer water sports to winter alpine experiences.
SADC Accessibility:
Lesotho’s membership in the Southern African Development Community allows for visa-free travel for SADC citizens, simplifying access for the key regional market.
Incentives
A low corporate income tax:
• 25% on profits from sales produced in Lesotho
Training:
• Cost of Lesotho citizens allowable at 125% for tax purposes
Withholding tax:
• 10% on service contracts with non-residents
• 25% on dividends distributed from income by resident companies to non-resident shareholders
• No withholding tax on dividends distributed to Lesotho residents
VAT:
• 15% on goods and services sold in Lesotho
• 0% on direct exports
Risk guarantees:
• Partial credit guarantee through the LNDC
Support from the LTDC includes:
• Dedicated tourism special development areas (SDAs)
• Investment facilitation services
• Assistance with permits and licenses
• Assistance with company registration
• Assistance with industrial relations issues
• Appraisal of investment projects
• Assistance with preparation of project briefs for the Environment Impact Assessment (EIA) Certification
Regional Access and Market Integration
Beyond the region, Lesotho could be attractive to visitors from the Northern Hemisphere during the Austral summer. Moshoeshoe I International Airport in Maseru is served by direct flights to and from Johannesburg, a major international hub with daily flights to other African countries, Europe, North America and Asia among others. Business-enabling reforms championed by the Government of Lesotho are beginning to bear fruit.
Prioritising travel and tourism has resulted in Lesotho’s overall competitiveness ranking moving from 93 to 41. This positions Lesotho to benefit from regional broad-based policies to promote travel and tourism under the African Continental Free Trade Area (AfCFTA). Progress is also being made in improving environmental sustainability. Lesotho was recognised in 2019 as the top scorer in Sub Saharan Africa and 20th globally for Environmental Sustainability in the WEF’s Travel and Tourism Competitiveness Report.
List of investment opportunities
The investment opportunity is structured around four core, revenue-generating components within a PPP framework:
Katse Eco-Lodge & Chalets:
Development of a 4-star lodge with 30-40 units, including family chalets and glamping tents.
Supporting amenities:
a signature restaurant, wellness spa, and conference facilities for the MICE market.
Luxury Cruise Boat Experience:
Operation of a 60-80 passenger double-deck cruise boat for scenic lake tours, fine dining, sundowner events, and private charters (e.g., weddings, corporate events).
Signature Attractions & Experiences:
• Dam-View Skywalk & Interpretive Centre: A ticketed attraction exploring the engineering of the arch dam, water transfer, and local ecology, co-curated with the Lesotho Highlands Development Authority (LHDA) and Katse Botanical Garden.
• Guided Engineering & Botany Tours: Behind-the-scenes dam viewpoints combined with alpine flora walks and medicinal-plant talks.
• Highlands Activity Hub: Curated hikes, pony trekking, birding, and mountain biking (MTB); winter “clear-sky astronomy” sessions; and a dedicated content/photography desk.
• Event Weekenders: Specialized programming including photography workshops, conservation and engineering weekends, and road-trip rallies aligned with the regional calendar.
Destination Services & Retail:
• Outfitters & Rentals: For trekking and mountain biking.
• Local Craft Studio & Lakeside Café: Featuring local artisans and a café with lake views.
• Producer Market: A small market for local producers from surrounding communities to sell their goods.
Project Assumption
The project would align with SDGs 1, 8 and 10.
Financial Analysis
A total investment of approximately:
USD 10.8m
comprising fixed assets of USD 10m, pre-production expenditure of USD 500k and initial working capital of USD 300k will be required for the establishment of the Katse Tourist Village. The graphs below illustrate a financially viable operation with the opportunity expected to generate a profit throughout its operational life.
Mohale Resort, ideal as a conference venue
In addition to the positive NPV and IRR, the initial investment cost of the project is expected to be fully recovered in the 7th year. The investment opportunity further responds favourably to the Country`s developmental objectives through its positive socio-economic impact in terms of employment creation, economic agglomeration and potential forex earning opportunities.
The resort’s annual net profit after tax increases from approximately:
USD 2.1m
USD 3.4m
in year 10.
Similarly, the projected cash flows of the envisaged project indicate that it will generate positive net cash flows throughout the 10-year operational period.
Financial Analysis
Placekeeper Image
The financial analysis of the Katse Tourist Village tourism investment opportunity is computed over a ten-year period. Revenue and expenditure projections are in line with industry growth prospects and market potential and have been informed by and benchmarked against industry standards and norms. In addition, assumptions relating to inflation; depreciation and salvage value; and company tax, have been worked out based on the existing laws and directives of the country. The figures above represent high level estimates as of October 2025 and are not derived from a full feasibility study. Investors are advised to conduct their own due diligence. There are no specific investment incentives for the tourism sector in Lesotho, except for the MICE sub sector.
Disclaimer
This web page provides a strategic overview. All financial figures are based on a high-level investment opportunity model and should be used as an indicator of potential only. Investors are strongly encouraged to conduct independent due diligence and a full feasibility study with the support of the LTDC to validate all assumptions under current market conditions.