47094
Economic Crisis Hits Zimbabwe Tourism
World Economy

Economic Crisis Hits Zimbabwe Tourism

Zimbabwe’s punitive tax regime, coupled with de-industrialization that has forced the economy to rely on imports and devaluation of regional currencies against the US dollar, have rendered the country an expensive and uncompetitive tourist destination, latest figures show.
Despite various attempts by the country’s leading hospitality groups to lure clients through African and Rainbow Tourism Group promotions and discounts that even topped 69%, latest Zimbabwe Tourism Authority figures for the first quarter of 2016 show national hotel room occupancy has slid by two percentage points in the period under review, with people preferring cheaper lodges or to sleep across the borders, Yahoo Finance reported.
The national average hotel room occupancy rate, ZTA said, decreased from 38% in the period January to March 2015 to 36% during the same period in 2016.
RTG’s highest discount was cost reduction on its New Ambassador Hotel’s double rooms by 56%, while the Cresta Group gave a 63% discount on its Cresta Oasis double rooms. Meikles Hotel was rather modest at a peak discount of 35%, while African Sun gave a 70% discount on its Crown Plaza rooms for bookings of at least three nights.
“These promotions resulted in increased utilization of accommodation facilities by domestic tourists in Harare more than in other regions. Even with such promotions, Harare experienced a 1 % decline in the first quarter of 2016 compared to the same period in 2015,” read the report.

 Reducing Costs
“This was attributed to the current harsh economic climate which has resulted in government, private sector and NGOs implementing austerity measures to reduce operating costs. For example, government banned the Harare municipality from holding meetings in hotels as a cost-cutting measure.”
This comes as Zimbabwe’s Tourism Minister Walter Mzembi is having a tough time convincing government to scrap a 15% tax on accommodation for foreign visitors, which he says makes the country a more expensive and less competitive tourism destination.
The country’s political situation characterized by spontaneous protests has worsened the problem and is mainly responsible for Zimbabwe’s poor ranking in the 2015 World Economic Forum Travel and Tourism Competitive Report. The travel and tourism report ranked Zimbabwe in May among the worst tourism destinations in the world at number 115 out of 141 countries.
Furthermore, an impractical pricing system with high hotel and transport rates is also a setback to Zimbabwe’s tourism at a time the sector battles to deal with other challenges such as heavy police presence on the highways and rampant corruption.

Short URL : http://goo.gl/ktk3cS
  1. http://goo.gl/QzhJZN
  • http://goo.gl/1GkRv3
  • http://goo.gl/SMxRKR
  • http://goo.gl/ORZ3WL
  • http://goo.gl/E9Jkdw

You can also read ...

World GDP is expected to advance 3.5% in 2017—its best year since 2011—and 3.7% in 2018.
Nearly 10 years after the financial crisis brought the global...
The OECD believes that tax evasions cost governments around the world as much as $240 billion a year in lost revenue.
They have revolutionized the way people live, but are US tech...
Supporters of EU-Mercosur Free-Trade Pact Push for Deal
Supporters of a free trade pact between the EU and the...
Few Signs of Progress in NAFTA Talks
Negotiations in Mexico to update NAFTA have not made much...
Kuwait Needs $100b Over 5 Years to Cover Deficit
Kuwait will need $100 billion of additional financing over the...
China to Help Shortfalls in Pension Funds
China on Saturday announced a pilot program to help pension...
Goldman Predicts Four Rate Hikes in US
The US economy is heading into 2018 with strong momentum that’...
Emmanuel Macron (L), French Labor Minister Muriel Penicaud (C) and Jean-Claude Juncker.
The EU is trying to present itself as more socially just,...

Trending

Googleplus