The Sunday Mail
THE travel business has become one of the most fascinating and rewarding world over, and there has been a stampede by Zimbabwean entrepreneurs to join the sector. A marked rise in the number of operators was experienced in 2009 as Africa braced for its first Soccer World Cup. Ensoleille Travels, driven by MD Ms Charlene Chimbwanda, is one of the firms hoping to make an indelible mark on the scene and is pulling all stops to market Zimbabwe as a safe tourist destination. The Sunday Mail Leisure’s Africa Moyo spoke to Ms Chimbwanda to understand more about the business. Read the excerpts …
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Q: Who is Ensoleille Travels?
A: Ensoleille Travels is a travel agency that specialises in selling international, regional and especially domestic holiday packages. The company believes in presenting Zimbabwe in a way that is unique, showing the possibilities that are immense and unending.
Q: Since formation, how has the business been performing, especially after the introduction of multiple currencies in 2009?
A: The business started in the year 2009 and like any other business it has faced its share of challenges. Since commencement to date there has been remarkable growth. It is a business I am very passionate about and with this kind of attitude nothing really can hold one back. You press on and things can only get better.
The introduction of multiple currencies had no major negative effect on the business. Most travel is quoted in foreign currency and if in local currency, the multi-currencies made conversions easier since the inflation rates were fairly stable.
Q: The topical phrase in the country at the moment is “cash shortages”. To what extent is this impacting on your business and what measures have you put in place to circumvent the problem?
A: The cash shortage has had a negative impact on my business. Clients have become hesitant to buy travel packages compared to past years.
Most clients are still trying to figure out where the wave is taking them before they commit to any travel, also considering that I sell just holiday packages which many may feel is not as important as their many other commitments that need their money. The cash shortages have had me taking advantage of some of my strengths, which are creativity and ability to improvise and make do with what’s available. In business and especially as an entrepreneur creativity in how you go about your business is key. I have built good relations with most of the lodges and accommodation facilities and so for my clients I am able to offer them the option to pay for their packages in instalments till date of travel. This allows ease on their pocket as well as security of their reservations. I have also accommodated for transactions to be done electronically by clients.
For the payments I have to remit to facilities offering services, the advantage is that they have always been done electronically because of the facilities far off locations. I have also pushed for more marketing strategies including promotionals to motivate my clients and also advise them that they can still commit to their travel plans even without hard cash as it is not the only acceptable form of transacting.
If anything, I would strongly encourage more national promotional opportunities because tourism is a sector that assists in bringing in and retaining foreign currency into the nation, aiding the current cash shortages. Especially in my case where I am selling more of Zimbabwe to the locals and the rest of the world.
Q: Similarly, currency volatility – especially of the South African rand – is having a knock-on effect the tourism sector. How are these challenges impacting on your business?
A: With regard to currency volatility it is not really been an issue with how I operate my business because I decided to specialise in holiday packages, which I could manage in the harsh economic environment. It is always advisable to study the environment, which I should add is never friendly.
Once you study your environment and relate it to the business you wish to venture into things will always work out. It may not work out to the ultimate of what you would have hoped for but the business will surely not fail.
Customers are most welcome to pay in whatever currency they have which we convert using the current bank rates.
Economists have warned that the major area in tourism that has been affected is how Zimbabwe faces further de-industrialisation due to South Africa’s ballooning trade deficit with its major trading partners, which is threatening to devalue the rand, making South African imports into Zimbabwe more competitive. Otherwise each nation has its cash challenges but we always have to find a way to make business thrive.
Q: Some women in business claim that the patriarchal nature of society means women cannot easily access working capital from banks. How have you navigated this?
A: I have experienced that the banks treat each person on merit and award their services accordingly. It is about time that women especially those in business stop hiding behind the patriarch-matriarch talk.
We have since been given our rights but most of the time we do not want to use them. If we look at the world around us there are a lot of women empowerment programmes and opportunities, which any woman take advantage of. It is up to us to make the move.
I have applied for loans before and they were granted. I was able to use the money for the development of my business and even when I experienced challenges along the way in repayment I was assisted accordingly of which service I am happy about. To date I have all the confidence that if I wish to apply for another I will be attended to. I never experienced discrimination of any sort throughout the process.
Q: Some businesspeople claim that high interest rates are impacting on the growth of businesses. What is your take?
A: High interest rates make it more expensive for companies to borrow money to finance their operations, payroll and purchases. High rates also eventually discourage consumers from buying because of the expense involved, which chokes off economic activity.
Zimbabweans are generally very hard working people and with all the effort we put into business we should all be sitting pretty whatever field we have chosen. Unfortunately the returns never come as we project not because we cannot work for it to get there but the interest rates cripple growth and many people may give up or decide to diversify or embark on other ventures just to keep afloat.
You may even end up working to pay off the borrowed money and you do not get to enjoy the fruits of your labour. I decided to hang in there and strategise to keep afloat.
Q: Other entrepreneurs bemoan high costs of formalising a business, taking into consideration the raft of taxes payable to Zimra, NSSA, city councils and Zimdef, among others. What is your comment on this?
A: Zimbabwe is an expensive country to live in and the risk to the monies we make as individuals or businesses are more than we can bear. The expenses of starting a company let alone operating a business are grave. Just the day to day runnings and remuneration costs is draining. It is very necessary to remit taxes to Zimra, NSSA, City Councils and Zimdef, among others because these services can only make your business better which I trust is the wish of every entrepreneur. The major problem is the fact that these are not affordable.
Even when most of these organisations are coming up with rates they say are suitable for entrepreneurs, it remains unattainable.
Entrepreneurs will be able to remit to one, after a hard struggle or none.
Q: How much does it take to formalise a travel business such as yours and in your view, is it fair?
A: To formalise a travel agency is not time consuming or cumbersome and may not require much capital but it all depends on how you choose to setup. My company is a home travel agent but for starters I had set it up online.
What was necessary for my operations was just a computer, internet connection and good acquaintances. If one would want to go all out, one would need to raise a minimum of US$5 000 for company registration, association registration, paperwork, office rentals and remuneration among other investments.
It is a low capital business depending on how much you are willing to spend on it and how you decide to set it up.
Q: Tell us if you have attempted to engage authorities with a view to revising costs associated with formalising a business, and what have they said?
A: I have not taken any sort of direct approach to authorities on the costs of formalising a business. I have though been a part of the discussions where we table these at the Small to Medium Association Authority of Zimbabwe, which I am a member of who we trust then forward such issues to the right offices.
As for reducing the costs of formalising and registering companies there have not been any changes made as yet but with other organisations and associations and where loan facilities are sought there have been adjustments made to suit entrepreneurs.
Q: What plans do you have to grow your business?
A: I aspire to own a resort in the Eastern Highlands of Zimbabwe preferably Nyanga and have its main attraction being a body treatment spa. To achieve this I know I cannot do it alone. As I always say, no man is an island.
I am working on engaging investors to make my dream possible. Something I know will be a hit considering my current experience in the travel industry. I have come to know better on what sells and how to sell.
Q: Tell us about your family?
A: I am from a family of five children. I am the fourth born. I still live with my parents in Greendale where I was born and bred. My family is a very close and loving unit that has played a great part in me fulfilling my dreams. I have had them by my side even when they did not fully understand my vision, even when they had no tangible guarantee that I would succeed.
Each member of my family is either employed or working on their projects or both. I would say we may have got the entrepreneurial trait from my father who has raised us as an entrepreneur and made it. In short one of our values is to look out for each other and support each other in whatever goals we wish to achieve.
Q: Some women say it is difficult to balance between family and work. How do you juggle the two?
A: I may not be able to answer for those with families that they are raising but I will surely share my thoughts. When venturing as an entrepreneur, it is something that has you completely involved in its day to day operations and this may hinder on you having quality time with your children and or husband.
But then again I believe it depends on how your family unit is structured and how you structure and plan your business operations which has to be able to accommodate your lifestyle. My question would be why venture into something that does not accommodate your family when you decided to have a family in the first place.
In my current situation, where I am still living with my parents, I get caught up in having to run errands and chores especially for my parents and I have had to learn to make time for this and if it is a situation where I am not able to it is occasional and my family takes care of things when I cannot.
Q: Tell us how you spend your spare time.
A: I am not all about my work. I am passionate about music and I have made time available to teach anyone willing to learn how to play a piano or guitar. I have come to the point where I then host annual concerts for all my students to showcase their talents where I invite promoters and their families for entertainment and their development.
