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Sikhulekelani Moyo, Business Reporter
THE Competition and Tariffs Commission (CTC) has encouraged more competition in the aviation sector saying this will lead to low ticket prices and the provision of quality services.
Competitiveness in the aviation sector is a critical factor in promoting economic growth, especially in the tourism sector.
According to the Commission, a reduction in air ticket prices has been witnessed globally post-deregulation since 1978, leading to an increase in entry and competition in the sector.
“There are numerous benefits arising from competition in the provision of air transportation services for both travellers and economic development of any country,” it said.
“Worth noting is that by the dictates of theory, airlines mainly compete on price and quality of service,” said CTC.
“First, competition in this sector leads to low ticket prices as airlines compete for customers.”
Recently, Ethiopian Airlines made its maiden flight to Bulawayo, a move described as a key development in the aviation industry that will boost the tourism sector and ease international travel.
The airline, which already flies into Zimbabwe through Harare and Victoria Falls, is set to provide service four times a week from Addis Ababa to Bulawayo through Victoria Falls.
The commission said competition in the sector encourages ease of doing business, especially in promoting domestic tourism. “In Zimbabwe’s case, a reduction in air ticket prices will promote domestic tourism. Since air transport is fast, lower prices make it affordable for travellers to move from one tourist destination to another,” said the Commission in its latest newsletter.
It also spurs international tourism to other local tourist destinations like Kariba and Hwange provided air tickets are cheap, thereby promoting tourism.”
At the regional level, given the geographic position of Zimbabwe, which is centrally located in Southern Africa, low air ticket prices can strategically position the country to become the regional aviation hub where travellers from the region connect flights to different parts of the world. — @SikhulekelaniM1.
Online Reporter