THM 102: Zimbabwe Tourism Geography

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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.
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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
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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
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
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
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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
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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
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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.”
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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
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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)
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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.
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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
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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.
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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.
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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.
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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;
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
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.
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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.
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