ZIMBABWE’s tourism industry is pricing itself out of the market and needs to correct its fee structure for sustainable growth, experts have said.
Government has set an ambitious goal to achieve a US$5 billion revenue target to be supported by an anticipated annual arrival rate of five million.
The sector is expected to contribute not less than 15 percent to the Gross Domestic Product (GDP) when the goal is achieved.
Presently, the sector is contributing about US$1 billion in revenue on the back of two million arrivals.
Currently, contribution to GDP is 11 percent.
The sector has been described as one of Africa’s low hanging fruits with vast potential to transform the struggling economies of the continent.
However, according to pundits, all this potential in the industry will not be realised as long as products remain overpriced.
Consumers continue to cry foul over steep prices, especially for accommodation.
“Our rooms are expensive compared to most destinations because instead of spending more money on activities, consumers are forking out more on accommodation which is not the trend elsewhere in the world,” said tourism consultant Michelle Shonhiwa.
“Rooms must not dent the pockets of tourists before they have had the opportunity to enjoy the various products on offer.
“Establishments must be making their money on activities and not rooms.”
Speaking at a stakeholders workshop on the ‘Ease of Doing Business in the tourism and enabling sectors’, Dr Misheck Sibanda, Chief Secretary in the Office of the President and Cabinet, said a robust strategy had to be crafted to accelerate consumption and development of tourism products and services.
“Despite a lot of effort being invested in the tourism sector, improving accessibility of the destination, image-building and knowledge development as well as other regulatory measures, a lot still needs to be done to restore the country’s attractiveness and competitiveness,” Dr Sibanda said.
“Zimbabwe’s tourism products are generally overpriced in the context of fierce regional competition, hence affecting the industry’s viability and growth.
“Some tourism operators are still utilising the Zim-dollar pricing model despite changes in economic fundamentals such as low inflation and current stable prices.”
The country, said Dr Sibanda, boasts some of the world’s best tourism facilities and resources that consist of pristine flora and fauna, including numerous world heritage sites.
“We need to implement a robust and viable domestic tourism strategic framework to tap into the local market,” he said.
“This will allow Zimbabweans to visit tourist resorts not for conferencing, but largely for leisure and other hospitable opportunities.”
Meanwhile, calls were made to improve the accessibility of the destination.
Earlier this year, Government introduced a new visa regime which has seen China being moved from category ‘C’ to category ‘B’, allowing its nationals to apply for visas at the port of entry.
This has led to an increase of Chinese arrivals in the country.
In terms of road infrastructure, Government has completed the rehabilitation and widening of the Plumtree-Mutare Highway and has already concluded the co-operation framework for the dualisation of the Beitbridge-Harare-Chirundu Highway.
The ongoing re-organisation of the Beitbridge Border Post to create functional green routes, curb corruption and decongest the ports of entry is also expected to improve tourist inflows.
Government has approved the establishment of a ports authority to ensure order and increased efficiency at ports of entry.
The extension of duty rebates to safari vehicles and capital goods for use in the hospitality sector has led to a number of players, notably in Harare and Victoria Falls, embarking on massive refurbishments and product revitalisation.
Stakeholders are, however, calling on authorities to improve accessibility of destinations by air.
Despite the upgrades at most of the country’s airports, the majority of the country’s tourist destinations remain inaccessible by airlines.
Air Zimbabwe has stopped flights to Kariba, which has led to the plummeting of hotel occupancy rates in the resort town.
Also speaking at the workshop, Zimbabwe Tourism Authority (ZTA) chief executive Karikoga Kaseke said the Ease of Doing Business Initiative also sought to attract investment into the country.
“This initiative is aimed at attracting investment and generating revenue and employment in all sectors of the economy,” he said.
“We are aware that the current destination image is very negative and we are also ranking lowly in destination competitive index.
“Furthermore, CNN recently ranked Harare third in ‘least liveable’ cities; worse than war zone countries.
“Whether or not this is true obviously reduces our competitiveness as a destination.
“We need to come up with concrete resolutions aimed at boosting tourism growth and its contribution to the national economy.
“The agreed resolutions should be implemented by all concerned stakeholders.
“As a country, we must move away from talk shows and take bold action for tangible results.”