Zimbabwe to re-introduce rand rates

ZIMBABWE is considering
reintroducing the rand
alongside the US dollar
at hotels and attractions in
Zimbabwe in an attempt to
make the destination more
affordable and attractive
to South African travellers,
says Tourism Minister,
Walter Mzembi. He made
the announcement at the
Mail & Guardian Investment
Tourism Summit in Durban on
November 27. However, tour
operators have warned that it
must not just be a conversion
of the dollar rate, as this
would not help.
South African tourist
arrivals in Zimbabwe have
declined sharply over the
past few years, from from
1,5 million visitors in 2006
to just over 600 000 in
2014, says ceo of the
Zimbabwe Tourism Authority
(ZTA), Karikoga Kaseke. “This
decline is very disturbing as
South Africa has always been
our biggest market.”
Rand rates will be a great
incentive for South Africans
to visit Zimbabwe, offering
them value for money, says
Walter. “That will entice the
SA market: giving them a
bargain holiday they can
pay for in rands.”
Tour operators in South
Africa agree. Mareike
Pietzsch, marketing content
developer for Jenman Safaris,
says the currency is the
biggest obstacle for South
Africans going to Zimbabwe.
Nowadays the option of
visiting other neighbouring
countries, which are available
at competitive rates, is more
appealing, she says.
“It is quite a mission for
South Africans to buy US
dollars. The option of using
their own currency is certainly
attractive,” says Goof de
Jong, operations manager of
Nyati Travel in Harare.
A beer or cold drink at
a hotel in Zimbabwe will
cost between US$3 and
$4 depending on the hotel,
which translates to between
R45 and R60, says Craig
Parvess, Comair Holidays
senior product manager for
SA and regional destinations.
He adds that activities such
as white-water rafting, which
is priced at about US$150
(R2 184) are expensive for
South African travellers.
A few months ago, the
Zimbabwe Reserve Bank
announced a dispensation
for the the use of the rand
in Zimbabwe’s hospitality
establishments, however
Walter says there has been
no uptake from the private
sector.
It is important to also
incentivise the tourism
industry in Zimbabwe to
accept the rand, he says.
He proposes that hospitality
establishments be exempt
from paying the controversial
15% VAT on accommodation
for foreign visitors, which
could make a substantial
difference to their revenue.
“We need to stimulate
arrivals while at the same
time giving operators in
Zimbabwe an incentive to
accept the rand.”
Zimbabwe will launch a
‘Visit Zimbabwe’ campaign
in the South African
market next year, including
roadshows in Johannesburg,
Cape Town and Durban.
Zimbabwe is keen to engage
the South African travel trade,
says Karikoga.