The Sunday Mail
MORE than two million visitors are expected to find their way to Zimbabwe this year as confidence in the country as a safe and attractive destination grows.
Experts, however, contend that local authorities need to angle for high-spending markets in order to boost national income.
Local brokerage MMC Capital said last week high spending patterns, which are a key feature of the tourism sector, are a boon to local economic growth.
The tourism industry contributed around 10 percent of GDP last year.
“In 2015, its weight is expected to close at 15 percent of GDP. In terms of growth, Treasury expects the sector to garner a 470 basis points growth, up from 3,9 percent in 2014.
“Total tourist arrivals, at 2,1 million, are expected in 2015, up from the two million recorded in 2014, as the country’s risk profile as a safe tourist destination improves.
“An average of 53 percent room occupancy was achieved in 2014, which is anticipated to rise marginally to 54 percent in 2015.
“Bed occupancy is also expected to increase to 38,5 percent in 2015, from 38 percent in 2014,” said MMC Capital in a research note.
The sector has 300 000 direct and indirect employees and is expected to enhance its contribution to employment as a result of the anticipated growth. Statistics show that receipts worth US$856 million were collected in 2013, up from US$749 million in 2012.
Though its current contribution to national income is just below US$1 billion against a target of US$5 billion by 2020, Government is optimistic that this figure will be achieved. Several positive developments have taken place in the sector over the last two years.
These include the co-hosting of the UNWTO General Assembly, the launch of the Tourism Policy in July 2014 to promote both international and domestic tourism in the country and the UNI-VISA pilot project between Zimbabwe and Zambia to increase tourist arrivals between the two countries.
Additionally, the sector enjoys duty exemptions on certain critical imports.
However, on the downside, the slow growth in the national economy has certainly impeded the sector’s growth potential, especially within the context of domestic tourism. High lending rates of up to 19 percent continue to be an albatross around the tourism sector’s neck.
“In our view, the tourism sector remains attractive as it is proving to be a shining star in a dimming economy. It is also vitally important that the transport sector, both air and road, continues to support tourism.
“We concur with the monetary authority’s policy advice that local tourist facilities should reintroduce the two-tier pricing system in order to promote local individual and family visits, thereby promoting domestic tourism which helps the economy even if there is a down turn in the international tourist arrivals.
“In addition, the policy advice that tourists from South Africa, our major market, could be charged in rands without referencing to the US$ pricing system and the creation of tourists easy access at border posts by making a provision for a green route for tourists separate from the commercial route are measures that can spur growth in the tourism sector will be achieved,” noted MMC Capital.
The Reserve Bank of Zimbabwe says Victoria Falls, the country’s premier destination, has to be classified as a special economic zone.
“The logical starting point would need to be Victoria Falls where the country is endowed with the Seventh Wonder of the World, the Victoria Falls, (Mosi-oa-Tunya). We now need policy measures to harvest from this natural resource and have a vision of making Victoria Falls as the ‘Tourist Hub of Africa’.
“The initial priority to realise the above dream would be to complete the master plan of the Victoria Falls and to provide it with the necessary designation of a special economic zone with facilities such as international business centre, offshore international banking that provides safe haven to all investors, thematic parks, cable cars,” the RBZ said in the 2015 Monetary Policy Statement.
