‘There is no appetite for retrenchments’

GLOBALLY, the tourism industry is among the hardest-hit sectors by the Covid-19 pandemic as tourist arrivals have declined drastically. Most countries have closed their borders and restrict travelling as part of measures to contain the spread of the virus. Depending on when restrictions on travel are lifted, the United Nations World Tourism Organisation has predicted that international tourist arrivals could this year decline by 60 to 80 percent.

This could translate into a decline in tourism revenues and place 100 to 120 million jobs at risk. This week, our News Editor, Cletus Mushanawani (CM) interviewed Hospitality Association of Zimbabwe, Manicaland Chapter chairman, Mr Charlton Chimbira (CC), to find out the obtaining situation in the Eastern Highlands’ tourism industry.

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CM. Due to Covid-19, tourism is among the hardest-hit sectors, with projections that international tourist arrivals could decline by 60 to 80 percent this year. What is the situation like in Zimbabwe and the Eastern Highlands in particular?

CC: Yes, there is a decline on arrivals, although we need to verify the 60 to 80 percent figures. As the Hospitality Association of Zimbabwe’s Manicaland Chapter, we concur that there is a downturn in terms of international tourism arrivals because of the closure of various borders. This has affected tourist arrivals and our local resorts are feeling the brunt.

This has affected Zimbabwe and Manicaland in particular, where we have resorts in Nyanga, Vumba, Mutare and Chimanimani. We are missing out in terms of tourist arrivals.

CM: Most businesses are operating with skeleton staff. What is the operating environment like in your sector? What are your business projections for the remainder of the year?

CC: We have seen some resorts opening their doors, but the staff structure is still very minimal. Traffic hasn’t picked up and most are looking at their costs and how they can contain them.

Looking into the future, we are seeing an improvement in terms of business operations as inter-city travelling resumes. Right now travelling is still a challenge, but we are likely to see more travellers as the year progresses. However, it will no longer be business as usual because of the economic challenges that were brought about by this pandemic.

CM: Are we likely to see job losses in the future as companies try to reduce costs and if not, what are some of the measures that have been put in place to cushion the employees?

CC: Most companies are re-looking at their business models, with focus on costs containment. There has been a complete re-design in terms of how jobs are being done across the board. What I see is more or less like a metamorphic approach to job designs, so there are some roles that will become redundant, while more new opportunities will arise because of the new operating environment.

From our discussions as the Hospitality Association of Zimbabwe, it is everyone’s desire to make sure that jobs are saved. No one is currently entertaining the thought of retrenching workers. There is no appetite to make people lose their jobs in this harsh economic environment. People are trying to come up with ways to make sure that they survive this phase.

CM: New safety measures in line with the World Health Organisation’s recommended physical distancing have been put in place. How will the industry implement the measures given that workshops and conferences form the bulk of your business?

CC: Conferences have been affected because of the prevailing situation, where we have restrictions in terms of the number of people who can congregate in one area, as well as the restrictions around travelling.

They have also been affected by precautions that have been taken by companies that uses conference facilities in the region, thereby resulting in a downturn in the conferencing business.

We have also noticed that most companies are trying as much as possible to cut costs, this is affecting us. We have clear guidelines that were sent from the secretariat, under the guidance of the presidium, in line with WHO’s recommended precautionary measures. We have communicated this with our players and they have since implemented the bulk of them.

For example, you will notice that each and every player now has sanitisation points on their properties. In terms of conferences, the new recommendations require us to have four people within a 10-square metre area. Everything is being organised in line with these guidelines and most players have implemented them. CM: Government has come up with a Tourism Revolving Fund for the tourism sector and has injected seed capital of $20 million. How much of that money will come to the Eastern Highlands and what are some of the plans for the money?

CC: We are still looking at the measures that were recently spelled out by President Mnangagwa. Issues of the Value Added Tax waiver payable by domestic tourists for accommodation and services also come into play.

We are still to get information on the modalities on how the facility will be managed. We still need more time to do consultations and get feedback on how the fund will be rolled out and we hope to get that information as soon as possible. We are also fully aware of packages like the World Tourism Organisation Recovery

Technical Assistance Package, but we always wait for guidance from our presidium on how we can assess these funds.

CM: What strategies is the industry putting in place to achieve set targets in line with Vision 2030?

CC: As an industry, there is an array of strategies that have been discussed, with some of them having already being implemented with regards to the Vision 2030. In terms of marketing, we have taken a deliberate strategy to ensure that people work together as teams.

We are also looking at destination marketing, instead of individual marketing. Destination marketing enables us to get bigger groups coming into the region and we co-host them.

We are also implementing co-marketing, where we also take small players on board. We are also encouraging small players to register with HAZ and the Zimbabwe Tourism Authority so that they can also benefit from programmes that the two associations are implementing. We are confident that we will play our part to ensure that Vision 2030 is attained.

CM: How is the industry taking advantage of the lockdown to spruce up their properties?

CC: Various players are currently sprucing up their facilities. This lockdown provided us with a perfect opportunity to give our properties a facelift as traffic is low. When the whole economy re-opens, the facilities will be among the best. I also encourage small players to follow the same route.

CM: What are some of the key lessons learnt from the events unfolding as a result of the Covid-19 pandemic?

CC: We really need to up our game as an industry. We have been in touch with our regional counterparts and we established that they have buffers or reserves for situations like these. Certain players in Botswana have a 30-month cover in the event of a disaster. Locally we need to develop a culture of saving when we have excess so that we tap from our reserves when the need arises. With reserves in place, the effects will not be so drastic. We need to build reserves that can sustain us for longer periods such that we should be able to meet demands that come with unavoidable overheads. We should be able to sustain these overheads for some time before we ask for outside intervention.

CM: Any parting shots?

CC: Hospitality industry players in Manicaland need to be strong because our region is strategic and our properties are among the best in the country. We still have that competitive edge which we should capitalise on. When this Covid-19 pandemic gets under control, we need to reclaim our positions as giants in the industry. I also need to tell the market that they need to come to the Eastern Highlands to enjoy an unforgettable experience.