Zimbabwe is considering reintroducing the rand alongside the US dollar at hotels and attractions in Zimbabwe in an attempt to make the destination more affordable and attractive to South African travellers, says Tourism Minister, Walter Mzembi. He made the announcement at the Mail & Guardian Investment Tourism Summit in Durban on November 27. However, tour operators have warned that it must not just be a conversion of the dollar rate, as this would not help.
South African tourist arrivals in Zimbabwe have declined sharply over the past few years, from from 1,5 million visitors in 2006 to just over 600 000 in 2014, says CEO of the Zimbabwe Tourism Authority (ZTA), Karikoga Kaseke. “This decline is very disturbing as South Africa has always been our biggest market.”
Rand rates will be a great incentive for South Africans to visit Zimbabwe, offering them value for money, says Mzembi. “That will entice the SA market: giving them a bargain holiday they can pay for in rands.”
Tour operators in South Africa agree. Mareike Pietzsch, Marketing Content Developer for Jenman Safaris, says the currency is the biggest obstacle for South Africans going to Zimbabwe. Nowadays the option of visiting other neighbouring countries, which are available at competitive rates, is more appealing, she says.
“It is quite a mission for South Africans to buy US dollars. The option of using their own currency is certainly attractive,” says Goof de Jong, Operations Manager of Nyati Travel in Harare.
A beer or cold drink at a hotel in Zimbabwe will cost between US$3 and $4 depending on the hotel, which translates to between R45 and R60, says Craig Parvess, Comair Holidays Senior Product Manager for SA and regional destinations. He adds that activities such as white-water rafting, which is priced at about US$150 (R2 184) are expensive for South African travellers.
A few months ago, the Zimbabwe Reserve Bank announced a dispensation for the the use of the rand in Zimbabwe’s hospitality establishments, however Mzembi says there has been no uptake from the private sector.
It is important to also incentivise the tourism industry in Zimbabwe to accept the rand, he says. He proposes that hospitality establishments be exempt from paying the controversial 15% VAT on accommodation for foreign visitors, which could make a substantial difference to their revenue. “We need to stimulate arrivals while at the same time giving operators in Zimbabwe an incentive to accept the rand.”
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Zimbabwe will launch a ‘Visit Zimbabwe’ campaign in the South African market next year, including roadshows in Johannesburg, Cape Town and Durban. Zimbabwe is keen to engage the South African travel trade, says Kaseke.
