The Sunday News
Roberta Katunga, Senior Business Reporter
EMPLOYERS in the tourism sector might be forced to pay their workers half salaries in the first quarter of the year, arguing that such measures would save jobs at a time when business is low due to declining arrivals.
Business in the tourism sector has been worsened by the continued firming of the US dollar against regional currencies, something that was making the Zimbabwe destination expensive.
According to operators in Victoria Falls, devaluation of regional currencies namely the South African rand, Botswana pula, Zambian kwacha and Tanzanian shilling has had a serious knock on the market coupled with a cocktail of other issues.
Employers’ Association for Tourism and Safari Operators (EATSO) president Mr Clement Mukwasi said although January was always a difficult month world over in the tourism sector, this year the situation was worse.
“The uncertainty that prevails in the domestic labour market which started after the Supreme Court threemonth notices ruling means locals are not secure enough to travel and spend money. We expect this suppressed condition to continue to around April,” said Mr Mukwasi.
He said most companies could not afford to pay workers bonuses as the trend was clear as early as last year that it would be a difficult first quarter and said that some companies were likely to pay their workers part salaries to avoid retrenchments.
“Measures to avert retrenchments are being put in place and these include paying part salaries to save people’s jobs during the low season. The decline in the number of tourist arrivals is clear for all to see,” he said.
Victoria Falls Safari lodge general manager Mr Jonathan Hudson said the fact that regional currencies lost about 30 percent of value against the US dollar last year had affected arrivals into the Victoria Falls and the whole country in general. He reiterated Mr Mukwasi’s sentiments that this year the low season was quieter than normal.
“Issues of worldwide security, regional currencies falling and the general low season have seen tourist arrivals into the resort town decline significantly. Companies have come up with various specials to cater for this quiet season between now and July,” said Nr Hudson.
Speaking on the prospects for the rest of the year, Mr Mukwasi said there had been a surprisingly high number of investors making enquiries into the tourism industry. He said this was an expression of confidence in the economy.
“If these investments are facilitated and come to fruition, the numbers will increase maybe around September. Investors are showing interest in direct infrastructure development and service delivery,” he said.
Operators said they also expect the official opening of the airport in Victoria Falls to boost arrivals as international aircrafts would be flying directly into the resort town.
Meanwhile, Tourism and Hospitality Industry Minister Dr Walter Mzembi said the ministry was now in a position to leverage with absolute confidence by engaging investors and issuing, in the beginning of this year, an international expression interest to develop the theme park idea after being finally handed the title deeds to the 274 hectares of land in Victoria Falls.
Minister Mzembi said what was disappointing was that it took about two and a half years to get the deeds to develop the integrated resort dream of Victoria Falls which showed that a lot has to be done to improve ease of doing business in the country.
“If it took us this long to give ourselves this deal what about to a third party who intends to invest here. We are applying sanctions to ourselves as a country and these are self inflicted sanctions resident in our statutes and laws adopted from the Rhodesian era which never allowed black people to be entrepreneurs,” he said.
He said the responsible departments should be able to process business licenses in less than 24 hours due to the era of online transactions. Minister Mzembi said the development of a master plan for the theme park would help determine what is needed and how much would be needed for development of the project.
