Chronicle Editor
Leonard Ncube, Victoria Falls Reporter
THE Tourism Business Council of Zimbabwe (TBCZ) has appealed to Government to avail part of the stimulus package extended to the tourism sector in foreign currency to allow the industry to import some of its essential requirements.
Government has pledged a bank guarantee facility worth ZWL$500 million to assist the tourism sector to access working capital loans from banks so as to boost the industry in post Covid-19. Environment, Climate, Tourism and Hospitality Industry Minister, Nqobizitha Mangaliso Ndlovu, unveiled the stimulus package last week together with a raft of measures to ensure the success of the industry, a key pillar of the economy.
In an interview following the unveiling of the package, TBCZ president Ms Winnie Muchanyuka said tourism players procure some of their key requirements outside the country hence the need for foreign currency.
“We are very happy with the developments shared by the Minister and we are looking forward to the operationalisation of the stimulus package and the revolving fund. It is our hope that the banking institutions will make the process seamless so that industry is not bogged down with processes whilst operations and resuscitation of industry suffers,” she said.
“These facilities also give scope for investment to develop new products and services that best suit the times we are faced with. While the amounts offered are welcome, we have indicated to the minister that some aspects of the upgrading of the tourism product will require importation of goods.
“As such industry will need some of these funds in foreign currency and that would need to be considered for the near future so that we can be ready for re-opening of facilities to tourists both local and international, “ said Ms Muchanyuka.
A majority of tourism operators and hoteliers closed indefinitely because of lack of business owing to cancellation bookings and postponement of travel by international tourists as a result of Covid-19 pandemic. Lack of tourists means no revenue for the industry hence the future looks gloomy without financial support from Government.
Minister Ndlovu said in coming up with package, Government was cognisant of the fact that the tourism sector has lost substantial business through cancellations and postponement of travel since January 2020 to date.
He said Government also considered that access to lines of credit are often hampered by lack of collateral or often stringent lending conditions by the financial institutions. Industry players purchase things like vehicles and chemicals among others from outside the country as some of the provisions are not available locally.
This will require foreign currency, Ms Muchanyuka said.
“It would be items relating to refurbishments that include fixtures and fittings, linen, drapery, carpets, crockery and cuttlery, kitchen equipment among others that have to be imported,” she said.
The stimulus package also includes a Tourism Revolving Fund with an initial injection of a seed capital of ZWL$20 million, waiver of Value Added Tax on domestic tourism, deferment of liquidation of foreign currency paid by international clients, support for Zimbabwe Tourism Authority and payment of money owed to tourism operators by various Government institutions. The tourism industry has been one of the hardest hit by the Covid- 19 pandemic.
Due to the pandemic, 2020 is projected to be a very difficult year for the tourism business as most countries have gone into lockdown while numerous business events have either been cancelled or postponed with flights having been suspended for a long period.
— @ncubeleon
Online Reporter