TOURISM Business Council of Zimbabwe (TBCZ) chief executive officer Paul Matamisa says lack of competitiveness in the tourism sector is negatively affecting it.
Zimbabwe’s tourism sector has got some of the most expensive packages compared to regional players.
For example, government revealed back in 2016 that South Africa often advertises the resort town of Victoria Falls as theirs, resulting in the neighbouring country earning more from the town than Zimbabwe.
The higher prices charged by local tourism players is a result of exchange rate volatility, the export retention threshold of 30%, as well as regulatory and policy inconsistencies.
“The (African) Continental Free Trade Area is bringing with it prospects of business as well as challenges because Zimbabwe is not quite ready. It’s not quite there in terms of competition when it comes to development,” Matamisa told NewsDay Business in an interview.
“If we look at our establishments countrywide and so on, there is a lot of work that has to be done in terms of making sure that they are actually competitive with the rest of Africa and even beyond because tourism does not look at your immediate vicinity alone. Your business is actually on a global stage.”
He said tourism players had a long road to go if the sector was going to become competitive.
The high local tourism costs have also made it hard to grow domestic tourism.
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From the US$493 million in tourism receipts recorded in the first half of last year, only 32,04% came from domestic receipts.
“We need to make sure that we prepare for the competition that is about to come. We know there is a lot of competition which is going to come from the world of Africa. Southern Africa is an interest to many countries in the North,” Matamisa said.
“They certainly want to have a foot in terms of business in this part of the world and Zimbabwe is not going to be left behind.
“It’s going to be one of those countries that they are targeting for their own growth as well from where they are coming from.”
He said the local business of tourism was at a global level, so players needed to compete with the best elsewhere by providing services and products that match international standards.
Hospitality Association of Zimbabwe first vice-president Emmah Kativu said one of the main challenges faced by tourism was brain drain.
“Many are going to the cruise ships, so you constantly have to train new staff that are coming on board,” she said.
“We find that maybe major conferences are being held in other neighbouring countries.
“But I see there needs to be a lot of investment in making sure that we have conferences and conventions being held here.”
Investments into the tourism sector dropped by a huge 45% to US$172,2 million in 2023, from 2022, despite a 27% increase in tourism receipts to US$1,14 billion.
