The Sunday Mail
THE renewed emphasis on promotion of domestic tourism comes as no great surprise; after all, the backbone of any viable tourism industry is hinged on local spending. Over the past decade, the harsh economic conditions and increased job losses have easily translated into low disposable income for the locals.
And executives who earn meaningfully, unfortunately, often choose to holiday outside Zimbabwe. Experts believe that domestic tourism is key to the well-being of the industry as it provides a sustainable base for local industry when there is a downturn in international tourist arrivals. Hence the push by Reserve Bank Governor Dr John Mangudya for a two-tier pricing system that encourages locals to spend more on tourism and hospitality.
Currently, there are high costs associated with travel, accommodation and meals at resort facilities as service providers peg their pricing models to suit foreign visitors.
In essence, a two-tier system will result in different pricing for domestic and foreign tourists. It is anticipated that by re-introducing the pricing system, Zimbabweans will be able to patronise local holiday destinations more, while at the same time guaranteeing growth and expansion of key enabling infrastructure required to boost economic development as jobs are created and disposable income increases.
After the introduction of the multi-currency system, Zimbabwe moved towards a unified pricing system where locals and foreigners would be charged the same price.
It is also believed that the two-tier system will improve the competitiveness of Zimbabwe in the region.
“It’s business and not charity; so, the tour operators’ chief motivation is realisation of profits and not giveaways that make them less profitable. This means that the price charged for a service is viewed as standard across the board for both foreign and domestic tourists, and if somebody is willing to pay, then there are grounds for justification on the issue of pricing.
“The move by RBZ complements Government’s new thrust to aggressively promote domestic tourism and tap into its vast potential as the country moves to revive the once thriving sector.
“In a bid to promote local individual and family visits, the Reserve Bank is of the view that local tourist facilities should re-introduce the two-tier pricing system. This measure will promote domestic tourism,” said Dr Mangudya in his recent 2015 Monetary Policy Statement.
Monetary authorities also contend that tourists from within the Southern African Development Community (SADC) region also need to be accommodated within the same band as local tourists in the envisaged pricing matrix.
“This would make tourism competitive especially given the fact that South Africa, for example, is a good source of tourists into Zimbabwe. Such tourists from South Africa could be charged in rands without referencing to the US dollar pricing system.
“There is also great need to allow tourists easy access at border posts, especially Beitbridge, by making a provision for a ‘green route’ for tourists separate from the commercial route. This would remove the usual nightmares that discourage visitors,” suggested Dr Mangudya.
Government intends to grow the sector to US$5 billion by 2020.
Tourism is widely regarded as a low-hanging fruit for the the country’s development prospects.
A survey of the the pricing system at local resorts by this paper indicates that local tourism products are considerably pricier.
At Chengeta, accommodation ranges from US$119 to US$169 full board per night, while it costs US$221 per night for a double room at the three-star Troutbeck Resort in Nyanga.
A three-star hotel in Kariba, Caribbea Bay Hotel, is one of the cheapest in the country at US$52 per night for a double room. Kingdom Hotel, which is a four-star hotel, charges US$1 827 for seven days, while another four-star hotel in the same resort town, Rainbow, charges US$1 069. In South Africa, hotel prices range between R484 to R1 060 per night from city to city depending on the rating of the hotel.
Economic indicators between Zimbabwe and the region reveal that Zimbabwe’s average minimum wage for commercial and industrial sectors is much higher than that of the other countries in the region.
However, the high cost of living in Zimbabwe negates the comparative advantage. Players in the tourism sector mainly incur high costs.
A local research company, MMC Capital, notes that the policy advice provided by the monetary authorities will assist major drivers of the economy such as the tourism sector through efficient allocation of resources and application of measures that increase demand of this particular service.
