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Zimbabwe to re-introduce rand rates

Source: Tourism Update, 14/12/2015

Rand rates will be a great incentive for South Africans to visit
Zimbabwe, offering them value for money.

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."

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.

Rand rates will be a great incentive for South Africans to visit
Zimbabwe, offering them value for money.
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."
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.

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