Tourist arrivals in Zimbabwe has increased by 17 percent over the first half of this year, according to a regional bank on Sunday.

The number of tourists who visited Zimbabwe during the first six months of the year went up to 768,000 compared with 637,000 in the same period last year, shows the monthly economic review for Zimbabwe for October by the African Development Bank (AfDB).

According to the AfDB review, most of the tourists in Zimbabwe came from African market. The country received a total of 675,721 tourists from Africa, reflecting a 19 percent increase from 2011.

Tourists from European market accounts for 41,000, an 18 percent increase compared to the same period last year. In the European market, the United Kingdom remains the main source, supplying 26 percent of tourists from Europe.

The Middle East supplies the least number of tourists, contributing 1,466 although this was a 36 percent decrease compared to 2011 statistics.

AfDB report shows that mid-year hotel room occupancy in Zimbabwe also increased from 38 percent in 2011 to 39 percent in 2012.

Zimbabwe's tourism sector faces challenges which include lack of funding to support marketing the destination image and dilapidated hospitality infrastructure.

Other challenges include shortages of water and electricity, inner city decay which is undermining destination image, poor road networks and low disposable income for the domestic market. There have also not been direct flights to cities and major tourist destinations like the Victoria Falls.

The introduction of new airlines, such as Emirates, KLM Royal Dutch Airline, Air Botswana and Mozambique Airlines would facilitate tourism growth ahead of the United Nations World Tourism Organization general assembly, the report said.

Zimbabwe and Zambia won the bid to co-host the 2013 UNWTO Assembly, to be held in Victoria Falls and Livingstone respectively, beating Russia, Turkey, Jordan and Qatar. The event will bring 186 countries to the Victoria Falls, one of the Seven Wonders of the World.

It will be the largest world gathering of countries in Zimbabwe since the Commonwealth Heads of State and Government Meeting held in the resort town two decades ago.