THM 102: Zimbabwe Tourism Geography Lecturer: D.K. Nyahunzvi Email: nyahunzvidk@yahoo.com or nyahunzvidk@msu.ac.zw Module objectives The module responds to the call for increased product knowledge among professionals in the tourism and hospitality industry of Zimbabwe. The module is also set to increase students’ awareness and knowledge of strategic issues of the sector. Module outline 1. A historical overview of tourism development in Zimbabwe Colonial phase developments Post-colonial developments Zimbabwe’s market share and performance 2. Organisation of the tourism industry (Ancillary services) Internal stakeholders External stakeholders Destination marketing Accessibility 3. The tourism assets (product base) Attractions Amenities The national parks estate TFCAs Community-based tourism (CAMPFIRE) 4. Human resource issues and challenges A training and development audit Recommendations. 1 5. Outcomes and prospects Social impacts Economic impacts Physical impacts Prospects (SWOT Analysis) Assessment: 30% Coursework 70% Exam Reference o World Tourism Organisation publications o RETOSA publications o Zimbabwe Tourism Authority publications o Ministry of Tourism and Hospitality publications o Journal articles 2 Tourism development in Zimbabwe: an overview 1.1 The colonial phase The development of tourism in Zimbabwe has been relatively recent and strongly influenced by prevailing political circumstances within the country. Prior to 1945, there was little tourist activity within Zimbabwe but thereafter, volumes increased gradually, with the number of international visitors topping 100 000 for the first time in 1999 (Child 1995). The Unilateral Declaration of Independence (UDI) on 11 November 1965 by the Rhodesian minority government was the next key political development. UDI led to the imposition of sanctions by the United Nations. Neighbouring countries that had gained independence during this time went on to ban international flights passing through Rhodesia. The National Tourist Board was established at this juncture to market the country and promote domestic tourism among the white minority. The number of international visitors peaked in 1972 to 360 000 and thereafter, declined sharply in response to the intensification of the liberation war, reaching a low of some 60 000 visitors in 1979. During the liberation war many tourism ventures closed, with the remainder struggling to survive the ever-dwindling levels of domestic support. Domestic tourism became dangerous and was restricted to road travel in convoys. Some of the events that had adverse effect on the tourism industry included The murder of two tourists from Canada that led to the closure of Mana Pools In 1975 Gonarezhou National Park was closed for security reasons and in the same year, Mozambique gained its independence and subsequently severed ties with the Rhodesian government. In 1976, a civilian aircraft was shot down resulting in the closure of several camps including Robin camp in Hwange and Zambezi camp in Victoria Falls In 1979, another airliner was shot leading to the suspension of flights to Hwange Other key milestones in this period included 3 In 1901 the Bulawayo Museum was opened (it was the largest then) In 1904, the Victoria Falls hotel was opened In 1906,Vic Falls reserve was established In 1915 Meikles hotel was opened On I June 1946, Central African Airways (CAA) was formed as a joint venture between Zimbabwe, Zambia and Malawi. CAA offered regional flights to Johannesburg, Blantyre, Nairobi and Botswana. In 1953, CAA had its first London-Harare flight that took four days compared to today’s 10 hours. 1954 saw the launch of Harare-Durban flights, whilst the flame lily holidays were introduced in 1960 as well as domestic holidays to Hwange and Kariba. In 1964, CAA disbanded after Zambia and Malawi gained independence; Air Zambia, Air Rhodesia and air Malawi were subsequently formed. In the 1950s, national parks were formally designated (these constitute 12% of the country’s total land area and are a source of one of Zimbabwe’s trump card; wildlife (the big five). In 1956, Kariba Dam was opened- it makes up for Zimbabwe’s lack of a coast line It is worth noting that during the colonial phase, discriminatory laws meant that the tourism industry was a preserve of the white minority. 1.2 The post-colonial phase Independence in 1980 ushered in a period of remarkable growth in both tourism figures and receipts. Table 1 Tourism arrivals in selected years (1969-2000) 1969 250 000 1970 270 000 1975 250 000 1979 70 000 1980 225 000 1985 320 000 1990 582 602 4 1995 1 219 736 1999 2 093 289 2000 1 866 280 Source ZTDC 1983, ZTA 1997, 2001 As reflected in Table 1, Zimbabwe became a ‘millionaire destination’ in 1995 and two years later in 1999, visitor arrivals doubled to 2m whilst tourism receipts increased at an average of 18% in US$terms and 25% in Z$terms. Since then, a record slump recorded however with the formation of the GNU and the lifting of travel advisories by some of the overseas markets (e.g. Japan, USA and Germany), the sector recorded some 1.9million tourist arrivals in 2009 whilst tourism receipts increased from US$294 in 2008 to US$523 in 2009. Traditionally, in terms of receipts, Zimbabwe depended on the overseas market mainly UK, Ireland, USA and Canada, with Europe forming 60% of the tourist arrivals. Whilst the overseas market constituted 15% of the total tourist arrivals, it contributed some 60% of the revenues. Thus it was the cash cow. Table 2 Top 5 Overseas market tourist arrivals (1995-2000) 1995 1999 2000 UK and Ireland 66 346 128 818 135 643 Germany 31 165 65 391 32 971 Netherlands 16 025 39 491 11 798 Switzerland 14 511 24 726 23 311 Other Europe 23 682 56 333 65 257 Source ZTA (2000) The key implication of these figures is that there is need to grow the overseas market to greater levels. The figures also confirm the vulnerability of our tourism industry as it has been outward-looking and heavily dependent on the western markets in terms of revenue (compare this with the domestic tourism industry in South Africa). Discussion 5 How are we attempting to increase visitation to Zimbabwe from the overseas market or growing the domestic tourism market? In terms of the African market share, South Africa has been the greatest contributor generating more than 50% of the tourist arrivals followed by Zambia and Mozambique. The key challenge here is that most of the African market is low yield tourism as most of the tourists are VFR and have low disposable incomes. The VFR market does not generally use tourist facilities but is a vital source of income to manufacturers and retailers. However, with an estimated 3-4 million Zimbabweans in the diaspora, VFR is bound to constitute a significant contributor to tourist revenues. Some key developments since 1980 The government formed the Zimbabwe Tourist Development Corporation (ZTDC) in 1984. ZTDC was the executive arm of the government’s Ministry of Environment and Tourism and had the mandate to develop the tourism industry. At independence, the government was faced with an exodus of white entrepreneurs and employees; most fled to apartheid South Africa. ZTDC’s mandate was to “invest in the tourism industry on behalf of the government” because of the massive divestments in the sector that followed independence (Nangati and Nyaruwata 1994). As an example, the government owned and managed RTG, National Parks, and Air Zimbabwe; it also bought shares in other parts of the tourism supply chain e.g. in Zimsun. ZTDC’s efforts at growing the tourism industry were severely affected by limited marketing budgets whilst operators faced limited access to forex and skilled manpower shortages. It merits noting that up to the 1990s; the country only produced 20 graduates of o each year from the Bulawayo hotel school. This limited supply was complemented by private sector in-house training and staff development programmes. As a stop gap measure, reliance was placed in some cases on expatriate managers whilst from the late 1990s, the country began offering tourism degrees. Other key events included 1982-1985- was characterised by political instability in Midlands and Matabeleland with one of the key events being the abduction and 6 subsequent murder of 6 tourists in Victoria Falls in 1982. The political instability reinforced the ‘unsafe destination image’ that began in the 1970s. Fortunately, the signing of the Unity Accord in December 1987 ended hostilities. 1981-982-there was a drought, which meant that funds meant for the productive sector were diverted to drought relief programmes. The 1980s also began with a recession affecting travel from the traditional overseas markets However, independence also saw to the re-opening of airlinks with the outside world. Air Rhodesia was rechristened Air Zimbabwe and many international airlines flew into Zimbabwe-at peak a total of 45 airlines but since 2000, less than ten airlines fly into the country. 1990 saw the liberalisation of the economy through ESAP. Government began to relinquish ownership of the tourism supply chain whilst foreign direct investment was actively encouraged. In 1990 , the Gulf War started. In the 1991-1992, the ‘worst drought in living memory’ was experienced in Zimbabwe. Regionally, in 1994 South Africa gained its independence following Namibia’s in 1990 although regional peace was shattered by the outbreak of the DRC war in 1997. There are however brighter prospects as peace has returned to some of the region’s hotspots such as Angola, DRC, Rwanda. It is worth noting that tourists’ cannot distinguish countries but regions; the regional image is thus important in tourist decision-making process as regards holiday choices. The unprecedented growth of tourism arrivals and receipts that was recorded in the 1990s received a sharp knock from post-2000 political events leading to a record slump as stated above. The macroeconomic instability characterised by fuel, food and foreign currency shortages as well as a negative destination image also led to massive disinvestments, retrenchment and a flight of skills from the sector. However, since 2009 there have been healthy signs of a tourism rebound. One of the key lessons that can drawn is that a tourist destination is highly vulnerable to exogenous factors that individual tourist managers/business owners have little control over. This brings us to the Tourist Area Life cycle concept (TALC) proposed 7 by Butler (1980); it provides a useful way of looking at destination Zimbabwe. Butler (1980: 5) emphasised that “tourist attractions are not infinite and timeless but should be viewed and treated as finite and possibly non-renewable resources. They could then be carefully protected and preserved. The development of the tourist destination could be kept within predetermined capacity limits and its potential competitiveness maintained over a longer period of time.” The TALC implies that destinations (e.g. Zimbabwe) or tourism product lines (e.g. HIFA, Vic Falls) like manufactured goods pass through life stages that progress from birth to dearth. The life cycle of a tourism product can be short (centenary celebration of Vic falls Hotel) or long (e.g. Kruger National park, The Vic Falls). The decline of a tourism product may be averted by rejuvenation. In discussing tourism, the term destination becomes ubiquitous; however, it is not always clear what a destination is. Is it a hotel, a city, a region, or a country? Bierman (2003:2) defines a destination as “a country, state, region, city or town which is marketed or markets itself as a place for tourists to visit.” Regardless of what geographic scope one assigns to the term destination, a destination is a product that must be marketed to its consumers. Like most products, destinations have a lifecycle. In his 1980 article, Butler proposed a widely-accepted model of the lifecycle of a tourist destination. The basic idea of Butler’s 1980 Tourism Area Life Cycle (TALC) model is that a destination begins as a relatively unknown and visitors initially come in small numbers restricted by lack of access, facilities, and local knowledge, which is labelled as Exploration in Figure 1. As more people discover the destination, the word spreads about its attractions and the amenities are increased and improved (Development). Tourist arrivals then begin to grow rapidly toward some theoretical carrying capacity (Stagnation), which involves social and environmental limits. The rise from Exploration to Stagnation often happens very rapidly, as implied by the exponential nature of the growth curve. The possible trajectories indicated by dotted lines A-E in Figure 1 are examples of a subset of possible outcomes beyond Stagnation. Examples of things that could cause a destination to follow trajectories A and B toward Rejuvenation are technological developments or infrastructure improvements leading to increased carrying capacity. Examples of things that 8 could cause a destination to follow trajectories C and D are increased congestion and unsustainable development, causing the resources that originally drew visitors to the destination to become corrupted, or no longer exist. The trajectory in Figure 1 of most interest to this research is trajectory E, which is the likely path of a destination following a disaster or crisis. Figure 1 Hypothetical Evolution of a Tourist Area (Adapted from Miller and Gallucci, 2004) Butler is not the only researcher to acknowledge this concept; in fact, many tourism researchers have written about it. Stankey wrote about destination lifecycle in his 1985 article, referring to it as ‘recreational succession’, which he defines as the gradual deterioration of a camping site as it becomes increasingly popular with visitors (Stankey and McCool, 1985). Iyer (1988: 30) also alluded to the destination lifecycle in the following quote about Bali, “Hardly has a last paradise been discovered than everyone converges on it so fast that it quickly becomes a paradise lost.” 9 Unit 2 Organisation of the tourism industry in Zimbabwe Tourism is a multi-faceted activity with numerous internal and external stakeholders. This fragmentation of the industry defines the need for better organisation and co-ordination if destinations are to be successful. The importance of tourism in a country can be reflected by whether a full-fledged ministry is dedicated to it or not. The Ministry of Tourism and Hospitality In Zimbabwe, the Ministry of Tourism and Hospitality provides strategic guidance of the sector and its vision is to: To develop Zimbabwe into a leading global tourism destination. Its mission is to: The Ministry seeks to continuously increase the sector’s contribution to the national GDP and thus enhance the quality of life of all Zimbabweans, particularly the urban and rural poor, by creating conditions under which the people’s remarkable resources and great creative potential can be unleashed, through transforming the whole country into an intensive tourism development zone. The overall functions of the Ministry are to: Administer and control the Tourism Act and its Statutory Instruments to ensure sector compliance. Develop, implement and review tourism policies and legislation in consultation with stakeholders. Oversee the development, implementation and review of the National Tourism Master Plan and Tourism Development Strategies. Monitor and co-ordinate policies governing the operations of the Zimbabwe Tourism Authority (ZTA). Co-ordinate and implement international tourism policies, programmes and protocols with regard to the United Nations World Tourism Organisation (UNWTO), World Travel and 10 Tourism Council (WTTC) and environmental organisations and other relevant international bodies. Co-ordinate and implement all Regional Economic Communities (RECs) blocs and tourism projects and programmes e.g. Southern African Development Community (SADC), Regional Tourism Organisation of Southern Africa (RETOSA), COMESA, East African Community (EAC) and African Union (AU). Co-ordinate Joint Commissions on bilateral and multilateral matters pertaining to tourism and develop Agreements, Protocols and MoUs on tourism co-operation. Supervise, co-ordinate and liaise with Regional and Overseas Tourism Offices, and Embassies with regards to tourism development issues. Overall supervision of the registration and grading of hotels, lodges, travel agencies, tour operators, tour guides and other Designated Tourist Facilities (DTFs) and issue licences thereof. Overall supervision and monitoring of standards of all tourism facilities, and ensure that the tourism and hospitality industry comply with international standards and statues. Identify and develop tourism products and projects in the Communities and Provinces e.g. Community Based Tourism Projects (CBTs), Heritage and Historical Sites, etc. Oversee research and planning of the whole tourism industry in the country including the physical development of both infrastructure and superstructure related to this industry in consultation with stakeholders. Facilitate to the production and processing of the National Tourism Statistics and keep up to date information on all trade organisations and projects for the Ministry’s database. Develop a Ministerial Web Portal, ensure effective internet access to the Ministry and its branches countrywide, and facilitate the gathering of website content and its constant up-date. The Zimbabwe Tourism Authority (ZTA) 11 It is the executive arm of the government on tourism matters. ZTA was established as a parastatal by the 1996 Tourism Act. ZTA’s operations are controlled by a Board that is answerable to the Minister of Tourism and Hospitality. The Board consists of 6-10 members appointed by the Minister in consultation with the President. These members are appointed for their knowledge or experience of the tourism industry or otherwise. The current Board chairperson is Mara Hativagone, the rest of the board members are Enivah Mugunzva, Chadenga Vitalis, Cleopatra Mtisi, George Magosvogwe, Hilda Mwamuka, Godfrey Mahachi, Clemence Masango, Clive Stockil, and Genius Maphosa. Its new mandate is to increase tourist arrivals to 5m by 2015. The Board determines the strategic vision of ZTA whilst the CEO operationalises it. ZTA’s vision is “to be the best national tourism organisation (NTO) in the world and to position Zimbabwe as a first class destination.” ZTA’s mission is to “professionally market Zimbabwe as a tourist destination, set and monitor industry standards, provide market research and statistics and assist in the creation of an enabling environment for the benefit of the nation and its visitors.” In pursuit of the mission ZTA provides market intelligence (through visitor/ passenger exit surveys), attends to various trade fairs such as Indaba, ITB, World Travel Bureau, regularly invites travel writers so as to obtain favourable press coverage and, it receives (for funding its operations) a 2% levy on all accommodation transactions. ZTA also investigates and makes recommendations to the Minister on any matters affecting the tourism industry and the administration of the Tourism Act. For a destination marketing organisation (DMO) such as ZTA to be successful, is should adopt the concept of Strategic destination marketing. There is need to formulate a winning ‘game plan’ in this competitive tourism industry. The following sequential questions should be addressed in crafting this game plan: 1. Where are we now? This should involve an external environment analysis to understand the SWOT facing the destination. Thus, supplier, competitor, market and product/attractions analysis is required. 2. Where do we want to go? For example, we want “to be the best DMO in the world or a must-see destination.” This entails crafting a mission and vision as well as formulating measurable and realistic goals and objectives. 12 3. How do we get there? As an example, is it through high value, low volume tourism/ conference tourism? Do we need to drop some markets or change our product offerings or our pricing and promotion strategies? Therefore, one needs to come up with an integrated marketing mix (4ps). What options do we have as a destination? One might choose the following growth strategies, if it suits the destination: Existing products New products Existing markets Market penetration Product development New markets Market development Diversification 4. How do we make sure that we get there and also know that we got there? This is monitoring and evaluating the chosen strategy through various forms e.g. customer feedback reports, visitor surveys, hotel occupancy figures, benchmarking, gap analysis (actual versus planned visitation rates). Most DMOs are constrained by limited marketing budgets as has been the case with ZTA. It is though worth noting that in today’s competitive industry, it has been argued that destinations should focus on ‘outsmarting’ rather than ‘outspending’ each other through wellcrafted and executed marketing strategies. The Zimbabwe Council of Tourism (ZCT) ZCT is the private sector’s representative organisation and its scope is to protect the interests of the private sector tourism businesses and to forge a working relationship with the government. ZCT is prominent for lobbying for an enabling/tourism-friendly business environment. Its members are varied including: 1. The Zimbabwe Association of Tour and Safari Operators (ZATSO) –this organisation represents tour operators. All tour operators are licensed by the Ministry of Tourism and Hospitality via ZTA and by law should provide a licensed professional guide and a licensed tour guide to conduct tours. 2. Zimbabwe Professional Hunters and Guides Association (ZPGHA) 3. Hospitality Association of Zimbabwe (HAZ)-it was formed in 1963 as HARAZ. It represents the hospitality sector including hotels, restaurants, sports clubs, lodges, motels, cafes and related establishments. Membership benefits include, networking, advise on labour 13 issues, assistance in licensing and keeping abreast with industry developments through newsletters 4. Boat Owners Association of Zimbabwe (BOAZ) 5. Association of Travel Agents of Zimbabwe (AZTA) 6. Zimbabwe Vehicle Rental Association (ZVRA) 7. Board Airline Representatives (BAR) The Civil Aviation of Zimbabwe (CAAZ) CAAZ is another critical stakeholder of the tourism industry. CAAZ was established by the Civil Act 13.16 on 1 January 1999 to replace the Department of Civil Aviation within the Ministry of Transport andEnergy. CAAZ’s mandate is to promote safe, regular and efficient use and development of aviation, inside and outside Zimbabwe. It also advises the government on matters relating to domestic and civil aviation. CAAZ was commercialised and is focussing on increasing its revenue streams rather than rely only on traditional sources such as landing and parking fees. CAAZ was behind the refurbishment of 7 domestic airports along with John Nkomo International Airport. CAAZ’s revenue streams have been affected by the withdrawal of some 17 international flights that used to fly into the country A related critical organisation is Air Zimbabwe; the national flag carrier. The airline has been hogged by numerous problems including allegations of mismanagement, limited and ageing fleet, poor and unreliable domestic services, huge debts (in excess of US$100m), too many changes of the Boards and high staff turnover although it has a good safety record (see attached press reports). Air Zimbabwe’s vision is “to create Africa’s most safe, innovative and competitive Air Transport company.” And its marketing strap-line is “Zimbabwean hospitality in the skies.” IATA suspends Air Zimbabwe Saturday, 14 May 2011 22:35 Business By Kudakwashe Mutandi BELEAGUERED national carrier Air Zimbabwe has plunged into fresh problems after the 14 International Air Transport Association (IATA) suspended the airline from participating in its billing and settlement plans (BSP) for failing to settle a US$282 000 debt. Experts say the airline could lose close to US$3 million per month in revenue if urgent steps are not taken to pay the outstanding amount. The BSP is a system that acts as a clearing house between travel agents and airlines. It facilitates as well as simplifies the selling, reporting and remitting procedures of IATAaccredited passenger sales agents and helps improve financial control for the respective airlines. Airlines are required to remit taxes to IATA for any given transaction. However, AirZim failed to remit US$282 500 in fees that accrued on a recent sale of air tickets. The suspension means travel agents can no longer book passengers onto the airline’s flights and passengers now have to visit the AirZim offices. Acting group chief executive Mr Innocent Mavhunga said his institution has already engaged IATA to negotiate a payment plan. In a letter to the flag carrier’s management, IATA director-general and CEO Mr Giovanni Bisignani said his organisation suspended Air Zimbabwe last Thursday after it failed to remit the stipulated fees by the agreed May 3 date. He said IATA offices in various countries had been informed of this decision. “IATA has been informed that Air Zimbabwe did not remit their negative balance of US$282 565,51 on the remittance date of 3 May 2011, despite several reminders that have been sent to you,” reads the letter. “Consequently, IATA must take appropriate steps pursuant to IATA’s resolutions, procedures and practices to safeguard the integrity of the IATA settlement systems, including billing and settlement plans (BSP). In this regard, we have instructed all IATA country managers and other stakeholders to immediately suspend Air Zimbabwe from all BSP in which it participates.” Other BSP stakeholders are Australia, China, Germany, Ireland, the United Kingdom, United Arab Emirates, Kenya, Tanzania, Uganda, Botswana, Mauritius, Malawi, South Africa and Zambia. An aviation expert, who declined to be identified, said the suspension would negatively affect revenue inflows. 15 “Sales will no longer be coming to Air Zimbabwe, meaning revenues could shrink from US$4 million a month to about just US$1 million. The conditions for rejoining may include a security deposit, but the biggest impact will be loss of confidence by the travelling public in major markets like the UK, Zimbabwe, South Africa and Zambia.” The expert said the airline should cut “unnecessary” expenditure and possibly ask staff to exhaust leave days. “These are the issues that the board and shareholders must give urgent attention to, including working capital support for fuel, creditors and hire of aircraft.” Air Zimbabwe has been facing numerous challenges in recent months, chief among them cashflow problems that have seen it fail to meet its salary obligations. In 2009, the airline was suspended from the main IATA clearing house which enables airlines to sell tickets among themselves and exchange passengers. This resulted in a monthly loss of US$200 000 and Air Zimbabwe servicing limited destinations. Why Air Zim should be liquidated Saturday, 02 July 2011 18:11 Business By Taurai Chinyamakobvu DOES Zimbabwe really need a national airline? Or does Zimbabwe need an airline service? Without splitting hairs, the two questions address different issues. Indeed Zimbabweans need an airline service. But they do not necessarily need Air Zimbabwe. It is irrefutable that beleaguered Air Zimbabwe is technically insolvent, and should be liquidated. Why the firm is still in existence in spite of so much corporate decay is not just mind-boggling but also mind-blowing. Despite its safety record, we have to face the moment of truth. I will explore below why this is the best way forward. First, clearly the airline is technically insolvent. One does not need to see the balance sheet of the parastatal to make this conclusion. Revelations in interviews by the chairman and acting chief executive officer reveal that the company is not only heavily indebted to its employees, banks, fuel suppliers and IATA, but also to a plethora of other creditors. Given its exposure to creditors, Air Zimbabwe should seek voluntary liquidation. 16 This brings to my mind the case of Royal Bank and First Mutual Life in 2004, when FML sought to place the bank under liquidation. In the same vein, because Air Zimbabwe’s liabilities are potentially much greater than the net realisable value of its assets, it should be wound down to protect creditors and to avoid a bailout by the Government which is in effect a taxpayer bailout. In a recent interview, the Air Zimbabwe chairman disclosed that the airline owed creditors US$101 million. He also disclosed that the airline had monthly revenues of US$4,5 million against expenses of US$6,5 million. Extrapolating these figures over one year shows that the airline will incur a loss of at least US$24 million. Secondly, Air Zimbabwe represents the height of malfeasance , at both the corporate and shareholder levels. I will attempt here to summarise both. Air Zimbabwe has changed chief executive officers probably more than any other company I can think of in Zimbabwe, many of them lasting no more than two years. The board has also been shuffled and reshuffled many times, yet the airline keeps bleeding. Management has failed to create rapport with employees. Clearly, it does not appear as if there is mutual trust between the managers of the firm and the rest of the employees. It is also very obvious that all Air Zimbabwe employees have no sense of duty to the company, the country and its vision, if ever there is a vision at the airline. While many other airlines have entered into alliances such as Sky team, Star Alliance, among others, Air Zimbabwe is not known for being a member of any alliance. The shareholder at Air Zimbabwe has demonstrated even more behaviour. It is the shareholder who has shuffled and reshuffled board after board without overseeing a radical turnaround programme and overseeing implementation of such a programme. The Government also directed Air Zimbabwe to embark on certain unviable routes without adequate resources to compete with larger airlines. Thirdly, a national airline is a flag carrier. Under normal circumstances, it should be an ambassador of the national brand. Yet many Zimbabweans are not very proud of flying Air Zimbabwe for many reasons which include lack of reliability. The state of Air Zimbabwe’s aircraft, operations and financial position renders its “national branding” role very untenable. 17 The recent rare but punitive action by IATA when it barred the airline from participating in the international financial and booking pool for owing close to US$300 000 was a blow to the national brand. IATA told all travel agents to “immediately stop all ticketing and refund transactions”. There is no worse publicity for any airline than this internationally. It could be argued that Air Zimbabwe is good for resuscitating tourism. That view remains valid until you check the tourism arrival figures and revenues, which are actually increasing at the same rate as the airline is getting embattled. It’s a remarkable inverse relationship! For decades, the Government has been inexplicably holding on to Air Zimbabwe, despite its recurring losses. It was reported last week that a Cabinet minister disclosed that Air Zimbabwe was too rotten to sell. He described it as being in such a state that no investor would want to buy it. If it is in such a state, then why does the Government want to keep it? If the Government keeps holding on to the airline, the taxpayer will eventually foot the capital deficits that emanate from poor management. The logical route, therefore, is not to keep pumping money into this airline. Tribal wisdom of the Dakota Indians has it that when you discover that you are riding a dead horse, the best strategy is to dismount. You may be changing the riders; appoint a committee to study the horse; arrange to visit other countries to see how others ride dead horses; lower the standards so that dead horses can be included; reclassify the dead horse as “living impaired”; hire outside contractors to ride the dead horse; harness several dead horses together to increase the speed; provide additional funding and/or training to increase the dead horse’s performance; do a productivity study to see if lighter riders would improve the dead horse’s performance; or declare that as the dead horse does not have to be fed, it is less costly, carries lower overheads, and therefore contributes substantially more to the mission of the organisation than do some other horses. You may even argue for rewriting the expected performance requirements for all horses, but at the end of the day, you will have to dismount. That’s what needs to happen at Air Zimbabwe. That airline should be liquidated as of yesterday. That way, the Government and the taxpayers will cut their losses. Creditors will lay claim to the assets. Besides some employees who will lose jobs, Zimbabwe will remain a destination for airlines. Tourism will continue and the fiscus will have one less company to bail out. 18 Liquidating a national flag carrier is not new. Zambia liquidated its Zambia Airways in 1995. Here in Japan, the national flag carrier, Japan Airlines, filed for bankruptcy protection in 2010. That strategy allowed the airline to restructure its debt and staff costs as well as pension obligations. It is now exploring alliance partnership with other international carriers. To provide a contrast, one has to look at airlines that are doing very well in Africa. Ethiopian Airlines keeps growing and serves 61 international destinations, and will soon be joining the Star Alliance. It has provided training to many pilots from other countries too. It also plans to buy 10 Boeing 787 Dreamliner aircraft, the first African country to announce such plans. Kenya Airways provides another sterling example of a well-run airline. So, the way forward is simple: liquidate Air Zimbabwe. Discussion What in your view is the best way forward for Air Zimbabwe? Comment on other issues related to accessibility in Zimbabwe? RETOSA The Regional Tourism Organization of Southern Africa (RETOSA) is a concept that brings together the 14 fascinating countries of the Southern part of Africa – Angola, Botswana, DR Congo, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, South Africa, Swaziland, Tanzania, Zambia, Zimbabwe to offer a unique opportunity to discover the natural wonders and splendours of the region – the infinite contrasts of scenery, climate, colour, traditions and culture, the spirit of Africa. RETOSA believes that if sustainably developed tourism offers the SADC countries the opportunity to: drive economic growth and boost job creation throughout the economy; increase export earnings and attract inward investment; alleviate poverty and stimulate rapid economic development in rural and peripheral areas; assist with broader economic development by using Tourism related infrastructure and transport networks; 19 increase lobbying efforts in the transport and communication sector in liberalization of air transport and development of international hubs to allow direct air access to more destinations in SADC; work with the private sector in collaborative ventures with a focus on sustainable development, open markets and human resource development; draw on abundant natural and cultural resources in partnership with local communities and other stakeholders and improve the quality of life for all residents; draw on a strong core Brand already developed by the sector in communicating the Region’s tourism identity; RETOSA however is cognisant of the key challenges that face tourism in the region and these include: availability/in-availability of accurate and reliable tourism statistics and information necessary for investment and business decisions; lack of adequate information on internationally acceptable standards of service in tourism operations; gaps in infrastructure, a lack of capacity and the need for major investment in facilities; poor international flight frequency, often limited internal transport links, and cross border access difficulties; too much red tape, both for companies doing business in SADC and for the tourists who want to visit; a lack of basic education and vocational training in customer care and service quality; The Regional Tourism Organization of Southern Africa (RETOSA) is a Southern African Development Community (SADC) body responsible for the Promotion and Marketing of Tourism in the region. The organization is managed by a Board drawn from National Tourism Authorities/Boards and National Tourism private sector umbrella bodies in the SADC countries. RETOSA offices are in Midrand, Johannesburg, South Africa. 20 Mission To ensure that the tourism industry becomes the 21st century’s economic driver for SADC through effective development and promotion of the sector. Mandate To market and promote tourism in Southern Africa (the region) in close cooperation with the region’s National Tourist Organizations and the Private Sector. Aim To create a concrete destination identity in the market in order for the region to compete effectively. The Organization combines the full spread of the stakeholder interests in the region – Public and Private Sectors, and the Community – into one Focused organization Strategic Objectives No 1 - To increase the volume of inbound tourism to and within the region No 2 - To create investment awareness for tourism development in the region. 21