Getting tourism sector out of dire straits

 NANCY MWAPE, Lusaka

THE tourism sector in Zambia has been hit the hardest by COVID-19 shockwaves, with virtually no international tourist arrivals since March 2020.

Business in the tourism sector almost came to an abrupt halt owing to travel restrictions and subdued domestic tourism activities.

Although the country is now seeing a rise in the consumption of tourism services by the domestic market, this is not large enough to support the multitude of enterprises, especially large hotels that cater for international travellers or the luxury lodges at the higher end of the market.

The World Travel and Tourism Council has warned that the COVID-19 pandemic could cut 50 million jobs worldwide in the travel and tourism industry.

Eco-Tourism Association of Zambia (ETAZ) also projects that the pandemic could result in 7,000 jobs being lost, 168 safari lodges and camps closing, while over US$100 million would be lost from the safari industry in 2020.

Similarly, the air transport has also been adversely affected by the COVID-19 pandemic.

During the first half of 2020, domestic and international passenger movements at Zambia’s four major airports reduced by more than one million. The four international airports are Kenneth Kaunda in Lusaka, Simon Mwansa Kapwepwe in Ndola, Harry Mwaanga Nkumbula in Livingstone and Mfuwe in Mambwe.

However, with the easing of lockdown measures, some international airlines have resumed flights into Zambia.

Concerned about the happenings in the tourism industry, Government, in its quest to revive the sector and promote local tourism, has proposed relief measures to be implemented in the 2021 national budget.

Among the measures to be implemented is the time to pay agreement covering income tax and value added tax.

“Government has reduced corporate income tax rate from 35 percent to 15 percent on income earned by hotels and lodges on accommodation and food services, suspended import duty on Safari game viewing motor vehicles, tourist buses and coaches,” Minister of Finance Bwalya Ng’andu announced during his presentation of the 2021 national budget to Parliament on Friday.

Additionally, Government has also suspended retention fees paid by tourism enterprises, registration fees for hotel managers and licence renewal fees paid by hotels and lodges.

Since March this year, hundreds of workers have been sent on forced leave by hotel owners and tour operators in Lusaka and Livingstone, citing loss of business resulting from cancelled bookings, which grounded the industry.

Visits to the Victoria Falls heritage site were equally suspended on March 28 this year to avert the spread of the novel coronavirus.

However, on May 21, President Edgar Lungu announced the reopening of the Victoria Falls to help revive the sector, with a call on players to also consider tapping into the K10 billion stimulus package to boost their businesses.

To facilitate an increase in tourist arrivals into Zambia, Government has injected over US$1 billion in the construction of four international airports.

Dr Ng’andu announced that Simon Mwansa Kapwepwe International Airport and Kenneth Kaunda International Airport would be opened next year.

Likewise, to encourage Zambians to operate in priority sectors, under a multi-facility economic zone or an industrial park, Government has proposed to reduce the investment threshold for Zambian citizens to qualify for tax incentives under the Zambia Development Agency Act number 11 of 2016 to US$100,000 from US$500,000.

Furthermore, the minister of Finance has proposed to suspend import duty on safari game viewing vehicles, tourist buses and coaches.

Livingstone Tourism Association chairperson Rodney Sikumba is optimistic that the reduced corporate income tax will help stimulate the stifled industry.

Further, the association is pleased with the proposed reduced investment threshold in the tourism sector for Zambia to qualify for tax exemption.

“Most of our budget submissions have been taken up and on tax, we seem to have made progress and we are happy about that,” Mr Sikumba said.

Similarly, ETAZ chairman Grant Cumings is thrilled with relief measures given to the tourism sector.
“The announcements are very much appreciated; these are the first meaningful tourism reliefs in many years. In the context of recovery from COVID, the reduction in corporate tax is a welcome relief in a profitable environment, but perhaps not so effective in the current environment where tourism business are generally suffering huge losses, near bankruptcies. When companies are losing money, a tax on profit is not so helpful compared to a time when companies are profitable,” explains Mr Cumings.
For some time, ETAZ members have been crying for the removal of import duties on vehicles. Therefore Mr Cumings feels the relief has come at a right time when companies are struggling to meet statutory payments to employees and Government.

“While such measures are appreciated and helpful, and will be more so in the coming years; much more meaningful help to tourism now would be stimuli, like removing or at least reducing VAT on tourism services, and introducing a meaningful marketing budget and programme to generate new interest and growth in Zambia’s tourism,” Mr Cumings said.

But, acknowledging the difficulties regarding preparations of the 2021 national budget under the current economic conditions, the Tourism Council of Zambia has extolled Government for responding favourably to their submissions in an attempt to stimulate the economy.

Council board chairperson Vincent Mupwaya applauded the Minister of Tourism and Arts, Ronald Chitotela, and his ministerial team in addressing growth constraints faced by the tourism sector.
“It is our considered belief that the announced stimulant package will encourage foreign direct investment and also free up resources for reinvestment, reduce job losses in the tourism sector and enterprise level,” Mr Mupwaya said.

With tourism being the most affected economic sector by COVID-19 shocks, the council believes the industry will only recover if the announced measures are sustained for a reasonable period to allow the sector to recover fully.

And Mr Chitotela says Government is determined to resuscitate the sector through promotion of domestic tourism.

The minister has since appealed to tourism players to start reducing tourism packages for the domestic market so that Zambians could begin to benefit from local tourism services.

Source: Getting tourism sector out of dire straits (30/09/20)

Tourist visits at Victoria Falls nosedive amid COVID-19 pandemic

 In 2019, about one million tourists visited the Victoria Falls in Livingstone, Zambia. Now, only a handful of locals view the Mosi oa Tunya (Smoke that Thunders), as it is locally named.

The Livingstone Tourism Association has warned that if the situation continues, the tour operators in Zambia’s tourist capital, may be forced to shut down their operations.

In 2019, the tourism industry contributed some seven percent of Zambia’s gross domestic product (GDP) and about 7.2 percent of total employment. International tourists spent some 849 million U.S. dollars, representing about 10 percent of Zambia’s total exports, according to government statistics.

Between January and June 2020, only about 14,000 tourists were recorded at the Victoria Falls by local authorities.

In an interview with Xinhua, Livingstone Tourism Association (LTA) Chairperson Rodney Sikumba, painted a gloomy picture for the city.

He said although local tourists visited the city, they did not have the purchasing power needed to sustain the 257 tourism businesses. He warned that most of his members faced bankruptcy.

“We can attract the locals, but then they will find that the pricing is prohibitive,” Sikumba observed.

He said there was need to re-invent local tourism as operators had to reduce pricing to loss-making margins for them to accommodate domestic tourists.

“From the way things are, its very difficult for me an operator to reduce my pricing by 30 percent on account of trying to attract domestic tourists. That in itself, we are robbed of the very little profit we trying to make,” Sikumba said.

He, however, is hopeful that a silver lining would come once COVID-19 is defeated.

Apart from the Victoria Falls, Livingstone is also known for its colourful local crafts, which is part of the city’s prized possessions.

Most of the crafts that are sold to tourists as souvenirs are carved in Mukuni Village which is part of the Falls area.

Mukuni Crafts Association Chairperson, Joseph Sitali, described the current situation as a disaster.

He said his over 200 members are failing to make sales as locals rarely bought curios.

Sitali said his members are considering taking their business online but have no knowledge of e-commerce.

Source: Tourist visits at Victoria Falls nosedive amid COVID-19 pandemic (27/09/20)

More elephant deaths recorded in Victoria Falls

 Langton Nyakwenda recently in  Victoria Falls

TWO more elephants were found dead in Victoria Falls last Friday, bringing to 27 the number of jumbo deaths in Zimbabwe in the last two months.

The Zimbabwe Parks and Wildlife Management Authority (ZimParks) suspects the deaths were a result of a bacteria and samples have been sent to the United Kingdom for tests.

The most affected areas are in the north-western  parts of the country where Hwange and Zambezi National Parks and forests such as Woodlands and Pandamasu are located.

ZimParks public relations manager Mr Tinashe Farawo confirmed the latest deaths in an interview with The Sunday Mail yesterday.

“We discovered the first carcass in Victoria Falls on Friday morning,” said Mr Farawo.

“Another dead elephant was discovered in the same area later that day. We are suspecting a bacterial infection and we have sent samples to the United Kingdom.

“These deaths normally happen this time of the year. During the dry season animals travel long distances in search of food and water sources. Elephants are heat sensitive so this might be stress related.”

Zimbabwe is home to over 84 000 elephants, the second largest population in the world behind Botswana. Yet the country’s national parks have a carrying capacity of just 55 000.

Said Mr Farawo:

“That’s why we are always saying we must depopulate certain areas, particularly Hwange and repopulate areas where there are lesser animals.

“We have capacity to repopulate the whole of Africa especially in countries which had elephants before but were wiped out due to various reasons like poaching.”

The first group of 11 elephants were found dead on August 28 with their tusks intact thereby ruling out poaching. The mysterious deaths had initially appeared to share some similarities with the unexplained deaths of hundreds of elephants in neighbouring Botswana in recent months.

Scientists are still to determine what killed the elephants in the Okavango Delta, northern Botswana.

Both male and female elephants of all ages have died and locals have reported seeing the giant mammals staggering and going around in circles before they die.

Source: More elephant deaths recorded in Victoria Falls (26/09/20)

Leopard terrorises Victoria Falls residents

 A FEMALE leopard, roaming with a cub, has terrorised residents of Victoria Falls' low-density areas.

The agile cat has reportedly consumed five dogs in the area and also wiped out a whole pen of ducks at one home.

The attacks have caused panic among residents who have now stopped walking with their dogs which they now keep caged as well as other small pets and livestock.

Residents now fear the leopard could turn to human beings.

Zimbabwe Parks and Wildlife Management Authority spokesperson Tinashe Farawo could not confirm the incident.

"I have seen your inquiry, I will attend to it in the evening. At the moment, I am in the bhundu (forest)," Farawo said.

However, two concerned residents, Adrian Read and Roger Parry had to issue a warning on social media platforms to other residents.

"Residents living in the Wood Road and Courtney Selous area need to be aware. A leopard killed Darryl Tirran's dog in his garden at 196 Courtney Selous in the early hours of this morning. A large female leopard and her cub have been active in that area for a few days according to the tracks we found," they wrote.

"The dog was grabbed close to Darryl, suggesting it is not scared of people. It also killed his ducks. People in that area need to be aware and keep their dogs locked inside at night, as no doubt it will be back," they warned.

Victoria Falls residents always live in fear of wild animals which stray from the game parks.

Several people have lost their lives after being trampled by elephants in the resort town.

Victoria Falls sits in-between two game parks, Chamabondo to the east and Victoria Falls to the west.

Source: Leopard terrorises Victoria Falls residents (25/09/20)

Victoria Falls Marathon goes virtual

NATIONAL Athletics Association of Zimbabwe (Naaz) has commended organisers of the annual Victoria Falls Marathon for their decision to hold the race virtually this year, a move likely to attract more participants from around the globe.

Organisers first moved the premier event from July to December due to outbreak of the Covid-19 pandemic.

The marathon draws international participants and traditionally takes place in the first week of July, but it will now take place on December 13.

Tendai Tagara, Naaz president, said it was pleasing to note that organisers of the race have made contingency plans that will help athletes prepare for the competition.

Virtual marathons seem to have gained popularity during the Covid-19 lockdown.

“Obviously we are excited as custodians of athletics that we will have the competition in December.

“Athletes can start preparing for the race and the good thing is that through virtual racing, you get to have more participants from accross the globe, which makes it fun.

“Already, we had the Old Mutual virtual marathon a couple of months back and this is now the trend worldwide. It’s also good to note that local marathon runners have embraced virtual racing,” said Tagara.

In a statement yesterday organisers of the Victoria Falls marathon said they would be bringing an exciting, but different event this year through the virtual marathon.

In a virtual marathon, athletes register and pay the requisite amount for their preferred distance then run on the set date at their own time alone and along their own chosen route.

The athletes record the finishing time and upload it on the race website and get certificates of participation which they can print out.

A virtual marathon can be held in any location one chooses and organisers of most events on the continent have gone virtual and thereby attracting larger audiences from all over the world.

This is good news for runners that have been itching for competition as they will no longer miss races since attendance is no longer determined by geographical location.

“Keep your training going and keep Sunday 13 December available as we are bringing to you an exciting virtual event. We will be ‘taking you to Vic Falls’ to run the marathon, half marathon, 10,5km relay or 7,5km fun run.

“We are working with one of the most sophisticated, interactive, virtual timing systems in the world, which offers ‘real-time’ accurate race results and tracking of your route. Whichever distance you choose, including the fun run,” read the statement from the Victoria Falls Marathon organisers.

The event will have an interactive ‘live’ tracking and distances will be timed with results provided. Prizes and giveaways are still being negotiated with the sponsors.

“You can challenge your friends, family and running clubs.” 

Source: Victoria Falls Marathon goes virtual (16/09/20)

NRZ courts partners for building hotel in Victoria Falls

 THE National Railways of Zimbabwe (NRZ) is courting some investors for partnership to build a hotel in Victoria Falls as it seeks to diversify its operations.

NRZ, which has been struggling to satisfy customer needs due to crippled capacity among other challenges, seeks to leverage on its other properties such as vast pieces of land dotted around the country to contribute to national economic development.

The parastatal already has a minimal presence in the tourism industry through use of rail leisure premier class coaches, museums and steam train excursions. NRZ is also into real estate business.

Lately the parastatal has been repossessing some of its pieces of land from leases who may have not been putting it to good use.

It plans to build a hotel in Victoria Falls on one of its pieces of land between the NRZ station and Kingdom Hotel and expects to announce the development partner within two weeks.

On Saturday NRZ officials had closed door meetings with the potential investor in Victoria Falls.

In an interview, NRZ acting principal property manager Ms Rachel Vandirai said the parastatal’s vision is to increase value of its vast pieces of land countrywide.

“The partners are very much interested in building the hotel as part of our programme to build infrastructure and add value to our land here in Victoria Falls. The impact of the project reflects more on accommodation and trying to help tourists stay in Victoria Falls.

“While improving tourism, as NRZ we are also interested in improving the value of our land resource. We have a huge chunk of land bank throughout the country hence we are not only targeting Victoria Falls,” she said.

Ms Vandirai could however not be drawn into disclosing who the investor is.

The Chronicle however understands that African Sun, with a chain of hotels countrywide and in the region, is the partner as the two companies are believed to be engaged in talks.

NRZ spokesperson Mr Nyasha Maravanyika said the parastatal strives to contribute to the nation’s developement through partnerships with various investors who are keen to develop Zimbabwe. “This is one commitment that NRZ is showing to ensure that we have something that is being developed on our land. NRZ is busting space barons throughout the country and we have come to Victoria Falls to see whether people are properly utilising our land,” he said.

Mr Maravanyika said NRZ also plans to build shopping malls around the country.

“NRZ has vast land and farms. We are planning on many programmes including malls and a lot of developments around tourism for national development which is why we are taking back our land from space barons who have been subletting our land without approval. We have found a prospective investor and signing of the agreement is expected in a fortnight,” said Mr Maravanyika.

Source: NRZ courts partners for building hotel (14/09/20)

Victoria Falls Municipality on waste management

 Leonard Ncube, Victoria Falls Reporter

IN an effort to encourage recycling and sustainable waste management, Victoria Falls Municipality is urging residents to separate garbage in their homes and use organic waste as compost in gardens.

The local authority has said majority of waste is biodegradable kitchen left overs that can be recycled and used at household level.

Residents mix metals and electric gadgets including batteries which increases fossil fuels that cause veld fires at the dumpsite while also causing disposal challenges for the council at the dumpsite.

Speaking during a tour of an engineered landfill under construction, Victoria Falls town clerk Mr Ronnie Dube said the local authority is investing in sustainable waste management to meet international tourism destination standards.

The low cost landfill is being constructed using Devolution Funds from Government and is modelled around the Fukuoka waste treatment model in Japan.

“We are too eager to manage our waste post-Covid-19. This period has given us time to think about how to make our town green. We asked to meet stakeholders here so they have an appreciation of the project. We are a tourism town and we saw it fit to invest Devolution Funds into the project that so we meet world destination standards. We had planned a programme of centralising refuse collection in suburbs where we would be collecting from designated points with people expected to separate waste at home,” said Mr Dube.

He said waste separation at source is cost effective.

Victoria Falls town engineer Mrs Sherinah Sibanda said awareness programmes are lined up to educate residents about waste management.

She said mixing waste material is costly for council and makes management difficult yet residents can improve livelihoods through recycling.

“We had planned an awareness programme but we had to start by doing the landfill after getting $3,5 million Devolution Funds. Waste differs from town to town and suburb to suburb. We will need to characterise our waste and teach people to start separating at source. We may find no need for big bins at home but simply use plastic bags because some of the rubbish we put in bins is biodegradable and can be used as compost in our gardens. In developed countries waste generates revenue but for us we throw everything away,” said Mrs Sibanda.

She said the council will introduce centralised refuse collection where residents will take their bins to certain points near their houses on the day of refuse collection.

“Station collection makes collection easier, efficient and saves fuel and time as the truck won’t be getting into each and every street. We would need a cage, not for people to offload garbage but to put bins on the day of refuse collection. This will also encourage everyone to be responsible and not load soil and heavy material into bins,” explained the engineer.

Residents are encouraged to put electrical gadgets, metals, plastic paper and containers, tins and other items separately.

Mrs Sibanda said council will come up with a calendar for collection of specific type of waste.

She said even people who scavenge for valuables at the dumpsite will not do it haphazardly and litter the environment as they will go to specific points where the things they want will be.

Mrs Sibanda said in countries where waste separation is done at source, businesses advertise on refuse trucks because they are clean.

Outgoing Combined Victoria Falls Residents Association chair Mr Morgen Gazza Dube said it will be prudent to constantly educate residents about waste separation and recycling.

Source: Victoria Falls Municipality on waste management (11/09/20)