Tourism players struggle to pay workers

Leonard Ncube, Victoria Falls Reporter
WITH no revenue coming in, tourism operators in Victoria Falls are taking further drastic measures to stay afloat including terminating contracts for remaining workers.

There has been a series of layoffs and cuts to salaries, including migration from paying workers in foreign currency to the local currency, as the sector weighs options to survive.

Both small and established players have continued to reduce workforce in the wake of the global Covid-19 pandemic, whose cumulative cases have reached 8 142 820 and killed 439 768 globally as of yesterday, resulting in indefinite closure of the tourism industry. Some players had sent workers on indefinite leave with skeletal staff such as front desk, security and maintenance remaining on site to handle cancellations, postponements and maintenance work.

While company executives were not keen to be interviewed, investigations by Business Chronicle showed that the companies are struggling to sustain staff salaries with no revenues coming in. Some companies including hotels and tour operators have reportedly terminated contracts of around to 200 workers each. Sector players are appealing to Government to urgently intervene by opening up domestic tourism or quickly avail the promised packages to save jobs and companies from collapse.

Internal sources from various companies confirmed that more workers had been laid off since the start of the month as employers struggle to keep a huge workforce without revenue inflows. In an interview, a tourism trade unionist Mr Edward Dzapasi said: “People are now suffering as some have been without salary for two months. Even those who remained at work many of them are no longer getting full salary. We appeal to Government to intervene as a matter of urgency and protect workers. They should open domestic tourism but at the same time adjust prices and rates so that people can afford.”

He said the Covid-19 situation should be a wake-up call for the industry to come up with measures like strengthening labour laws or setting up a fund whose aim will be to cater for workers during times of distress.

Government is currently working on a strategic post-Covid-19 tourism recovery plan to reopen the industry for domestic clients as a way of ensuring that the sector gets some revenue. Last month Government pledged a bank guarantee facility worth ZWL$500 million to assist the tourism sector to access working capital loans from banks so as to boost the industry post Covid-19.

The stimulus package also includes a Tourism Revolving Fund with an initial injection of a seed capital of ZWL$20 million, waiver of Value Added Tax on domestic tourism, deferment of liquidation of foreign currency paid by international clients, support for Zimbabwe Tourism.

Authority and payment of money owed to tourism operators by various Government institutions. The tourism industry welcomed the packages as a relief.

The local tourism industry employs more than 40 000 workers and contributes 1,4 percent to national employment, according to the Hospitality Association of Zimbabwe (HAZ).

HAZ Victoria Falls chapter chairman Mr Anald Musonza said the pandemic has created huge challenges for business especially in Victoria Falls where tourism is the mainstay.

“This has caused a lot of distress for companies and employees. Our hope is on Government’s intention to open domestic tourism to help revive our industry and hopefully revenues start trickling in and help retain some workers. The cashflow has run out and we hope the Government tax break and all packages will be quickly accessed to remain viable,” he said.

The International Labour Organisation (ILO) estimates that globally over 25 million jobs will be lost due to the coronavirus, with 2020 projected to be a very difficult year for the tourism business.

Zimbabwe Tourism Authority (ZTA) acting chief executive, Mr Givemore Chidzidzi has said saving jobs along the tourism value chain is at the heart of the tourism recovery plan.

Source: Tourism players struggle to pay workers (17/06/20)