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Hospitality sector banks on domestic tourism

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NEWLY elected Hospitality Association of Zimbabwe (HAZ) president Brian Nyakutombwa says domestic tourism will push occupancy rates up this year.
Nyakutombwa who succeeded Farai Chimba last November was also optimistic that government efforts to grow the tourism sector would also bring up new investments in the sector.
He further called for the campaign to boost local leisure travel to be made permanent.

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“I do foresee occupancy growing in 2024 over 2023. I am quite confident that domestic tourism will play a crucial role in the continued resurgence of the tourism and hospitality industry in Zimbabwe, and as that happens, I see visits from foreign tourists and our brothers and sisters in the diaspora also gaining traction.
“Barring any unforeseen developments that can disrupt occupancy performance, I foresee more visits to hospitality establishments around the country as travellers respond to the attractive packages that hospitality and tourism operators shall be offering,” Nyakutombwa told The Financial Gazette this week.
“The continued implementation of the tourism revival strategy will also see more players joining the tourism and hospitality domain which should contribute to occupancy growth.”
“The domestic tourism campaign is a noble idea that should be upheld permanently. It should not be a once-off exercise and should continue to receive the requisite funding and prominence in the various media platforms.
“Operators should complement the efforts by the government by sprucing up their facilities, delivering superior service and offering exciting value propositions so that there is value for money in the business exchanges that will be taking place,” he added.
This also comes as Finance minister Mthuli Ncube in the 2024 national budget announced some tax exemptions for the sector.
Tax expert Tapiwa Vela-Moyo said the exemptions would help boost tourism investments.
“Its (the tax exemptions) mainly to do with suspension of duty on the importation of motor vehicles for day-to-day use. This rebate of duty means the government is trying to encourage the players in that sector to invest more so that the country gets more out of the tourism sector,” Vela-Moyo said.
It also comes as hotels in the country’s premier resort city of Victoria Falls recorded a modest increase by one percentage point in occupancy over the festive season, underpinned by individual travellers and the diaspora.
Local travel traditionally drives the holiday rush, particularly for families and couples seeking year-end breaks.
Matabeleland North HAZ chairman, Chiku Mulinde, acknowledged the slight bump from 64 percent occupancy in 2022 to 65 percent in 2023.
“This performance falls slightly short of our anticipated business levels,” he admitted, citing hopes for more substantial growth. Individual travellers, families supported by diaspora funds, and corporate retreats emerged as the primary drivers.
Mulinde commended the Tourism ministry’s “ZimBho” initiative for boosting domestic tourism, urging them to continue their efforts.
Airlines played a vital role, offering daily flights from key domestic markets like Harare and Bulawayo.
Notably, some families opted to fly in to avoid the “poor state of the Bulawayo-Victoria Falls Road,” Mulinde highlighted.
The condition of this vital road remains a concern for the industry.
Overall, Zimbabwe’s tourism industry is on the upswing, with a 41,9 percent increase in tourist arrivals during the third quarter of 2023 compared to the same period in 2022.
This surge, fuelled by global tourism recovery, improved infrastructure, and proactive marketing, saw 494 878 visitors grace the country’s stunning landscapes.
Neighbouring African countries contributed the bulk of tourists at 344 496, while the Middle East sent the least — 3 232.
This positive trend extended to revenue, with tourism earnings jumping 24 percent to US$272,26 million during the quarter.
newsdesk@fingaz.co.zw

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