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Commercial Farmers' Union of Zimbabwe

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New rules a body blow for tourism

New rules a body blow for tourism

http://www.theindependent.co.zw/

Thursday, 05 July 2012 17:53

Paidamoyo Muzulu

ZIMBABWE seems to have shot itself in the foot once again following the 
publication of controversial indigenisation regulations which threaten to 
deal the country’s recovering tourism industry a body blow.
Indigenisation and Empowerment minister Saviour Kasukuwere last Friday 
published the contentious General Notice 280 of 2012 in the Government 
Gazette, directing companies investing in the tourism industry to comply 
with the damaging Indigenisation and Economic Empowerment Act which compels 
businesses to surrender a 51% shareholding to indigenous people within a 
year.

Zanu PF politicians and their local business cronies are pushing for the 
expropriation of foreign-owned companies under the guise of a selective 
indigenisation and empowerment policy.

While the campaign is hurting business, it is feared the latest regulations 
threaten investment in tourism and the successful hosting of the 2013 United 
Nations World Tourism Organisation (UNWTO) general assembly to be co-hosted 
by Zimbabwe and Zambia in Victoria Falls and Livingstone, a major 
opportunity to revive the sector.

Government has already ruined commercial agriculture and is undermining 
finance and banking, mining, manufacturing and other sectors of the economy 
through its indigenisation policy widely seen as mostly benefitting 
political bigwigs and the well-connected in Zanu PF.

Kasukuwere’s latest indigenisation push is likely to scare away potential 
investors, particularly when it comes to construction of the proposed 
Victoria Falls Convention Centre and other infrastructure ahead of the UNWTO 
assembly to be held from August 24 to 29 next year.

The event is expected to spur infrastructure development and tourism growth 
in Zimbabwe, but the heavy involvement of China in the preparations has 
raised fears the country will mortgage more resources to the Asian giant.

Zimbabwe does not have the financial resources to build a convention centre, 
upgrade the Victoria Falls and Harare International airports, improve health 
and hotel facilities, upgrade border posts and invest in power 
infrastructure and dualisation of roads.

Critically, the national flag carrier, Air Zimbabwe, has virtually collapsed 
and something needs to be done about it if the UNWTO event is to be a 
success. With the troubled Air Zimbabwe almost grounded, the country would 
have to depend on foreign airlines to fly the expected delegates and 
tourists.

Tourism minister Walter Mzembi told parliament a fortnight ago that China 
was providing much of the funding for the conference.

“We have signed a concessional loan agreement of US$150 million with China 
Eximbank (Export and Import Bank) for the expansion and refurbishment of 
Victoria Falls Airport,” said Mzembi. “This would allow big long haul 
planes to fly directly to the resort town.”

However, Mzembi neither disclosed the conditions of the loan nor gave 
indications as to when the loan deal would be brought before parliament for 
ratification.

China, which seems exempt from indigenisation laws, has been heavily 
involved in funding most of the country’s current infrastructural projects 
such as the Harare-Norton road dualisation, construction of dams 
countrywide, the National Defence College and building of a new hotel 
adjacent to the National Sports Stadium.

In return, Zimbabwe has mortgaged some of its mineral wealth like the 
Marange diamond fields, platinum resources along the Great Dyke and vast 
amounts of gold and chrome mining claims.

Zimbabwe is currently in election mode ahead of polls likely just before or 
after the UNWTO event, and Mzembi warned parliament a violent campaign would 
cost the country dearly.

“In Zimbabwe, the need to maintain the current peace and security cannot be 
over emphasised. Without peace and stability, we can kiss goodbye to any 
hopes we may be entertaining of a tourism boom, including the hosting of the 
UNTWO General Assembly in 2013,” Mzembi said.

The indigenisation regulations affecting tourism are likely to achieve 
exactly what Mzembi fears — undermining the tourism sector which was almost 
decimated by the political and economic crisis between 2000 and 2009. 

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