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Michael Tome Business Reporter
PLAYERS in the tourism industry have commended the Government for setting aside US$7,5 million revolving fund facility to support the sector, saying the decision is a timely boost towards the industry’s efforts to claw back from the severe drawbacks induced by the Covid-19 pandemic.
The financing facility is expected to largely go a long way in repositioning small to medium tourism (SMEs) that were adversely affected by the pandemic, after hotels were forced to completely shut, leading to extensive job losses in the country and the world over.
Covid-19 drastically altered the world’s tourism and hospitality industry and a recent study shows that two out of three individuals in the restaurant industry lost their jobs at the peak of the pandemic.
The Government recently has moved in to mitigate the impact of the pandemic on tourism when it unveiled a revolving funding facility to support recovery in one of the country’s vital economic sectors.
The fund will help stimulate tourism businesses following nearly two and half years of lockdowns.
The fund is expected to assist in the retooling and refurbishing of the hospitality and tourism establishments dotted across the country to suit the needs of contemporary tourism trends.
As part of initiatives to recapitalise the industry in February this year through the Monetary Policy Statement, the Government allowed registered tourism players to retain 100 percent foreign currency earnings to allow for the sector’s recuperation.
Retaining foreign currency earnings allows tourism and hospitality players to rapidly recover lost ground and also assists in the procurement of the necessary goods and services required by tourists and travellers.
Tourism Business Council of Zimbabwe (TBCZ) chief executive, Paul Matamisa, said although the facility had taken a considerable time to come, it would go a long way in empowering tourism and hospitality businesses.
He said it would promote the creation of new or enhance existing tourism experiences and products to attract more local and domestic visitors.
“As the tourism sector, it had been long since we requested the Government to set up the facility, but it did not come when we asked for it then, now that it has come certainly it gives us hope, this gives us the knowledge that we are actually moving in this journey together with the government, Covid-19 played a nasty job on us in the past two and half years or so.
“Right now we are happy that we are seeing things happening on the ground, through this help we can now project further in terms of tourism sector growth, we certainly wish to see this sector contributing much more to the economy,” said Mr Matamisa.
Brian Nyakutombwa, Hospitality Association Zimbabwe (HAZ) vice president, said the initiative came on time when the sector was highly in need of assistance especially post Covid-19 restrictions during which the hospitality industry lost momentum in terms of revenue generation.
“The fund came at the right time, it is something we were looking for especially at this moment when we see traffic beginning to grow, borders are opening up, skies are opening up and we are receiving more visitors.
“We are experiencing increased occupancy, which is typical of the second half of the year season, I can confirm that it is the general state of the industry currently,” said Mr Nyakutombwa.
According to Treasury, the facility will be accessible through normal banking channels, where tourism players will be mandated to submit their requests to participating banks with the requisite information.
The funding is coming from the US$958 million Special Drawing Rights (SDR) allocation made to Zimbabwe by the International Monetary Fund last year.
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