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.

5. Outcomes and prospects

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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

In 1901 the Bulawayo Museum was opened (it was the largest then)

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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

1995 1 219 736

1999 2 093 289

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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

How are we attempting to increase visitation to Zimbabwe from the overseas

market or growing the domestic tourism market?

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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

subsequent murder of 6 tourists in Victoria Falls in 1982. The political

instability reinforced the ‘unsafe destination image’ that began in the

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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

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

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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

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

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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

Tourism Council (WTTC) and environmental organisations and

other relevant international bodies.

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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)

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

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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.

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

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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 well-

crafted 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

issues, assistance in licensing and keeping abreast with industry developments through

newsletters

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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

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.

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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 IATA-

accredited 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.

“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

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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.

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

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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.

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

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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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