Tourism sector seeks to retain forex earnings
ZIMBABWE’S tourism industry is seeking to retain between 30 percent and 40 percent of its direct foreign currency earnings for importation of key requirements.
A study — commissioned by the Hospitality Association of Zimbabwe — also said the sector was key in generating foreign currency and the Reserve Bank should prioritise allocation of foreign currency. The hospitality industry uses several products, which are not available on the local market.
“Noting the potential of the sector to earn foreign currency, it is therefore recommended that the Ministry of Finance and Economic Development through the Reserve Bank of Zimbabwe put the hospitality into the first category list for the foreign currency earnings.
“It is further recommended that the RBZ considers introducing a foreign currency retention scheme for the hospitality sector whereby the sector can retain 30-40 percent of its direct foreign currency earnings for the importation of the products it needs, as well as for payments of contractual obligations like franchise fees,” according to the report.
The report said the respondents expressed dismay over the fact that the central bank had not identified the hospitality sector as one of the priority industry for the allocation of foreign currency.
It said companies were waiting for months to be allocated “small amounts” of foreign currency.
“Some respondents pointed out the policy contradictions with regard to lack of foreign currency allocations to the hospitality sector. On the other hand Government’s objective is to make tourism a key pillar of the economic growth under Zim-Asset.
“On the other hand government is starving the sector of foreign currency hence contributing to the deterioration of products offered to tourists by the sector. “Respondents highlighted the fact that the hospitality sector needs a steady and uninterrupted flow of specific imports to remain competitive in the eyes of domestic and international tourists.
The report said several companies in the industry were facing collapse due to shortages of key products or inability to procure products as per franchise specification.
It said the Government should give the hospitality sector a moratorium of 12 months on import license requirement to allow the businesses to build up adequate stock levels.