Tourism receipts in Zimbabwe: Are these low hanging fuits benefiting the country’s economy?

25 Jun, 2017 - 02:06 0 Views

The Sunday News

Butler Tambo
THE Ministry of Tourism and Hospitality Industry Visitor Exit Survey for the period 2015/2016 period showed that the main factors that contributed to negative visitor perception of the country included high prices, alleged harassment by traffic police, poor facilities, poor infrastructure and poor quality service delivery. This article then seeks to look at the historical policy development of tourism in Zimbabwe, the contribution of the sector to the economy, why tourists shy away from Zimbabwe and how the country can benefit from the economic low hanging fruits that the tourism industry has to offer.

Historical policies guiding tourism in Zimbabwe

In Zimbabwe the issue of the policy environment has played a major role in shaping tourism development. Before independence, tourism was governed by the Development of Tourism Act 1975 which was administered by the then Rhodesia National Tourist Board (RNTB). The board was under the Ministry of Information, Immigration and Tourism.

In 1980 the tourism sector was part of the Ministry of Information, Immigration and Tourism. In 1982 it was combined with the Department of Natural Resources and Environment to form the Ministry of Natural Resources and Tourism to which the Department of Mining was added in the 1990s. In 2009 the Government created a standalone Ministry of Tourism and Hospitality Industry.

At Independence the RNTB was transformed into Zimbabwe Tourist Board (ZTB) which was responsible for both regulatory and commercial operations. Tourism was then redefined under the new dispensation following the amendment of the 1975 Tourism Act through the promulgation of Development of Tourism Amendment Act 1984. The Amendment Act provided for the formation of Zimbabwe Tourist Development Corporation (ZTDC). ZTDC then superseded ZTB which was responsible for both destination marketing and commercial services.

The ZTDC faced numerous challenges including being a player and at the same time a regulator to inconsistencies in funding. A private company was formed out of ZTDC, Zimbabwe Tourism Investment Company, now Rainbow Tourism Group (RTG). The Zimbabwe Tourism Authority was formed through the Tourism Act Chapter 14:20 of 1996.

In a 2013 Report entitled Positioning the Zimbabwe tourism sector for growth: Issues and challenges by Sanderson Abel and others, the policy changes that were effected in terms of the location of the sector reflected the general Government thinking on the role of tourism in the economic development of the country at each specific time in the country’s political history.

For example, before independence tourism was combined with information because it was used as a propaganda tool for the settler regime. The changes that occurred in 1982 were informed by the realisation that the sustainability of the sector depended on the successful implementation of natural resources conservation programmes.

Post-independence tourism marketing (1980-1984)

The focus of the marketing strategy for the period after independence was to position the country as a new African destination. Marketing programmes were geared at establishing market presence in the traditional source markets like the United Kingdom, Germany, North America, South Africa and Australia.

Tourist offices were opened in these areas to service the needs of the travel trade and to create public awareness of the new destination. The country used the positioning statement ‘‘ZIMBABWE: WAITING TO BE DISCOVERED’’ in its promotional material in a bid to raise curiosity about the destination in the source markets. The marketing activities undertaken by the Zimbabwe Tourist Board resulted in noticeable increase in tourist arrivals to the country.

The period of stable growth (1985-1999)

It was characterised by marketing programmes that were aimed at consolidation of market share in the traditional source markets, exploring of niche markets in the same areas and penetration of new markets. It was during this period that the country expanded its promotional activities to new markets like France, the Netherlands, Italy, Spain and New Zealand.

The marketing programmes also focused on special interest markets like conferences and incentives. The main thrust during the period was the establishment of partnership programmes with tour operators in the source market who were dedicated in packaging holidays to Zimbabwe.

The country changed its positioning statement to ‘‘ZIMBABWE AFRICA’S PARADISE’’. The change was meant to reflect the country’s competitive position in Africa as a preferred holiday destination in the continent. The industry witnessed continuous growth with direct employment in the sector reaching 200 000 in 1999.

The period of stagnation and decline (2000-2008)

The marketing programmes that ZTA embarked on during the period were driven by the need to respond to the market perception of the country as an unsafe and politically unstable destination.

The negative publicity that the country received during and after the implementation of the land reform programme was such that the destination was viewed by tourists in the traditional source markets as a “No Go Area”. ZTA repositioned its marketing efforts and focused attention on the Eastern markets with countries like China, Malaysia and Russia as the key targets.

The refocusing of the marketing strategy was in line with the country’s “Look East Policy”. The macro-economic environment obtaining in the country during the period rendered the marketing activities almost ineffective. For example Zimbabwe market share of tourists’ arrivals to the Sadc region declined from 16 percent in 2000 to 9,5 percent in 2008.

The period of recovery (2009-2013)

The establishment of the inclusive Government helped to improve the image of the country. The marketing thrust of ZTA has been on re-establishing links with key tour operators and decision makers in both the old and new source markets. Besides participating in the major travel shows around the world, ZTA has also expanded its media and travel trade familiarisation programmes in order to ensure continued improvement of the country’s image in the source markets. A new positioning statement ‘‘ZIMBABWE A WORLD OF WONDERS’’ has been adopted and is being used in all the country’s promotional material.

Contribution of tourism to economic development in Zimbabwe

There is an increasing consensus on the importance of tourism in Zimbabwe as a strategic sector in the national economy insofar as it makes an essential contribution to the economic well, being of the resident population and to the economic objectives of the Government. However, measuring the contribution of tourism to growth remains a challenge in the absence of a Tourism Satellite Accounting (TSA) system like in Zimbabwe.

The TSA system is very important for the effective tracking and efficient accounting of the contribution of tourism to growth and all the flow through effects of tourism. The system is further used to observe the linkages between supplies of goods and services in the economy and to show how supply of goods and services interacts with other economic activities.

Over the period 2004-2006 tourism contribution to GDP averaged below five percent rising to 11,5 percent in 2008, on the back of the various marketing activities by ZTA. However, it declined to seven percent in 2010 on the back of rising challenges related to limited airline connectivity. The sector’s capital investments averaged 8,5 percent between 2004 and 2008, before falling to 6,5 percent in 2010. Tourism contribution to export earnings has been high averaging 15,86 percent from 2004 to 2010.

Since 1980, tourism arrivals have been increasing yearly at an average rate of 17,5 percent. The first drop by 11 percent was recorded between 1999 and 2000. The following years (1996-2008) were marked by fluctuations in numbers of arrivals, rather than the growth trend that was experienced from 1980-1999.

The sector suffered a major setback in 2000 when countries like Britain, Germany and the USA issued travel advisories to their citizenry to avoid Zimbabwe for safety and security concerns. The tourism sector experienced a ping pong nose dive characterised by very low international arrivals, capacity under-utilisation, economic sanctions, political and economic instability, bad publicity, and withdrawal of airline carriers, hyperinflation, shortage of basic commodities and fuel, and negative market perception.

After 2009 the tourism sector has experienced an upward trend in international arrivals from 1,2 million arrivals in 2009 to 2,1 million in 2015 Arrivals began to peak again from 2009, where arrivals rose by three percent and in 2010 by 11 percent. The growth pattern continued into 2011 where a growth rate of eight percent was recorded.

Additionally, the tourism receipts were depressed during the period 2000–2005, mainly on the back of negative publicity following the country’s land reform programme. After 2005 the tourism receipts took an upward trend. The tourism receipts have increased from a low of US$61 million in 2003 to US$662 million in 2011.

In the next article we will look at some of the major reasons in detail why tourists shy away from Zimbabwe even though it boasts of the best climate in the world and some of the most breath-taking resort areas.

-Butler Tambo is a Policy Analyst who works for the Centre for Public Engagement and can be contacted on [email protected] or +263776607.

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