A month after the introduction of Zimbabwe’s new currency, the ZiG, the tourism industry is slow to adopt its use.
The new currency, Zimbabwe Gold (ZiG) is backed by a combination of precious minerals, including gold as well as foreign currency reserves. The currency began the roll-out of lower denomination notes last week.
Peter Chuma, a Zimbabwean-based travel agent at Galaxy Travel, told Travel News that suppliers were still trading in US dollars and the ZiG had not been taken on board. “It’s business as usual here for us in the travel industry,” he said.
“Airlines in Zimbabwe still want customers to pay in US dollars and Victoria Falls tour operators are still using US dollars. Even if you want to go on a boat cruise in Victoria Falls you can’t use the ZiG, because their supply is sourced in dollars,” he explained.
Chuma said the industry would only fully adopt the currency when it had been widely circulated and had gained stability in the country. “Authorities are coming down hard on businesses who are not accepting the ZiG, but it is not the same for the tourism industry,” he said.
“Confidence in the currency is earned, based on how we perceive it,” said Wengayi Nhau, Tourism Business Council of Zimbabwe National President. “As tourism and business, we can’t say we want or don’t want the new currency but government has the responsibility to fully accept the new currency unconditionally and make it the base payment for all transactions.”
Chuma said he believed it would take at least a month, or thereabouts, for the new currency to be circulated enough for adoption in the tourism industry.
