Xmas bonanza for hoteliers

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PLAYERS in the hotel industry are projecting an average of 80% occupancy rate during the festive season despite the persistent liquidity crunch.

PLAYERS in the hotel industry are projecting an average of 80% occupancy rate during the festive season despite the persistent liquidity crunch bedevilling the country, with the bulk of workers in the private sector denied the 13th cheque as companies barely manage to survive in a stagnated economy. GAMMA MUDARIKIRI OWN CORRESPONDENT

Analysts canvassed by Southern Eye Business in recent weeks have been agreed the economy is approaching a tailspin reminiscent of the precoalition government era unless the new government’s much-trumpeted economic blueprint, the Zim Asset, delivers economic miracles during the first quarter of 2014.

But players in the hotel industry yesterday were bullish ahead of the festive season.

Zimbabwe Council of Tourism vice-president Tich Hwingwiri said players in the hospitality industry were anticipating brisk business during the festive season with most players hoping to maintain an average of 80% hotel occupancy rates achieved last year.

Hwingwiri said the figure would mainly be sustained by foreign tourist arrivals which are expected to grow following the successful hosting of the United Nations World Tourism Organisation (UNWTO) general assembly at the resort town of Victoria Falls in August this year.

“We are hopeful that in this festive season we will maintain the 80% average room occupancy achieved last year,” Hwingwiri said.

“Good signs are already showing with some players already indicating that their bookings are increasing,” Hwingwiri added.

Speaking on the recent $200 million fund pledged by the government to recapitalise the tourism industry and rehabilitate infrastructure, Hwingwiri said the loan would go a long way in the short term in improving the operations of the sector.

The government pledge to make available the loan is promptly following a proposal made by the Zimbabwe Tourism Authority (ZTA) for the revival of a $200 million revolving fund to finance the operation of the sector.

According to ZTA, the tourism industry would in the next five years require between $1 billion and $1,5 billion to fully recapitalise.

Zimbabwe’s tourism sector, buoyed by the successful hosting of UNWTO general assembly in August is poised to earn the country $1,5 billion by 2015 and contribute close to 20% of gross domestic product helped by the projected increase in tourist arrivals.

According to ZTA tourist arrivals are expected to grow by 66% from 346 299 in December 2012 to three million by 2015 after countries represented during UNWTO general assembly endorsed Zimbabwe as a viable and safe destination.

Zimbabwe’s tourism sector, recovering from a decade of negative publicity for the country, recorded a 12% increase in tourist arrivals in the first half of the year compared to the same period last year.

The ever-increasing regional trade and commerce also contributed immensely to this growth in arrivals, through the activities of business tourists, cross-border traders and transiting tourists, mostly drawn from the Democratic Republic of Congo, Tanzania, Malawi, Mozambique and Zambia.

The government recently announced that it was working on initiatives to come up with travel incentives for civil servants as part of plans to improve domestic tourism, also expected to drive the country’s economic growth.

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