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So today we take a close look at a growing industry- The Tourism Industry in Zimbabwe and Zambia. Foreign tourist arrival numbers have been encouraging in 2016 and we expect better fortunes in 2017 for both countries and the region as a whole. You do not need to analyse any sophisticated market reports to notice that more tourists are visiting Zimbabwe and Zambia have increased.

Below we have a market intelligence report on Zimbabwe and Zambian Tourism that would like to share with our members. This is part 1; in part 2 we hope to be specific in terms of opportunities that exist in this lucrative sector dividing the opportunities into Capital intensive opportunities, low capital opportunities and lastly opportunities for the Diaspora.

Tourism Opportunities in Zimbabwe
In spite of the economic potential of Zimbabwe, with its strong gold, natural resources and agricultural environments, the 1.4% GDP growth registered in 2015 demonstrated the fragility and volatility of the country’s economy. Nevertheless, and despite the adversities, inbound arrivals was able to develop, recover from the crisis in 2008 and increase its contribution to the national GDP.
UNDERDEVELOPED ENTREPRENEURIAL FRAMEWORK UNDERMINES E-COMMERCE

The Zimbabwean travel market largely consists of local and uneducated entrepreneurs who try to adapt to the domestic market and to demand from foreign tourists. If in terms of currency and language this adaptation is easy, in terms of new communication technologies an extremely underdeveloped scenario is apparent. This is evident in the market’s online sales, which are nominal. The lack of multinational players operating in the country further explains the poor performance of online sales.

LOW COST CARRIERS SHOW THE WAY

Despite the underdeveloped stage of some categories in this market and even the Zimbabwean airlines category, airlines has, in fact, demonstrated some outstanding entrepreneurial dynamics. After FlyAfrica.com began to operate low cost flights in the country, in 2015 Fastjet Zimbabwe began to offer both internal domestic flights and connections to South Africa. This bold entrepreneurial attitude fuelled the category and the overall market and resulted in increasing competition in other categories.

DOMESTIC TOURISM DAMAGED BY HIGH PRICES
Domestic tourism flows were significantly undermined by the high prices practised in the country and which are only affordable for foreign tourists. Domestic tourists increasingly complain that an average Zimbabwean worker cannot afford the costs of local hotels or the expensive adventure and safari packages sold through intermediaries. This trend led to a decline in domestic flows in the country in the latter part of the review period.

MARKETING AND PRODUCT DIVERSIFICATION TO FUEL THE MARKET
The Zimbabwean Government acknowledges the increasing importance of travel in the development of the country’s economy. As a result investment aimed at stimulating Zimbabwe’s tourism potential abroad is already underway and the results may well be felt in the short term. In parallel, in order to make the country more appealing to foreign tourists, intermediaries need to innovate and create new touristic products. In other African destinations, the creation of luxury safari and adventure packages is becoming increasingly fashionable and should be exploited by local entrepreneurs. In parallel, support mechanisms to stimulate domestic tourism should be urgently implemented by official entities in partnership with lodging and intermediary entrepreneurs.

Tourism Opportunities in Zambia

ZAMBIA PLANS NATIONAL AIRLINE TO BOOST TOURISM
The Ministry of Tourism and Arts confirmed that it is considering the re-establishment of a national airline to help boost the country’s booming tourism industry. It has received interest from potential partners in Europe, the US, Africa and the Middle East. It is planned that the proposed new national carrier would fly locally and to neighbouring countries, as well as to one or two longer haul routes including London. The re-establishment of the national airline would help further increase trade in terms of imports and exports. It would also complement the Link Zambia 8,000 Road Development project in promoting easy access to the various tourism destinations and products that Zambia is famed for, such as its 20 wildlife parks, heritage sites, water bodies and the mighty Victoria Falls.

ZAMBIA’S GOVERNMENT AIMS TO ENCOURAGE DOMESTIC TOURISM
The Zambia Tourism Board (ZTB) has officially launched a campaign dubbed ‘Green season domestic tourism’, aimed at encouraging Zambians to take a holiday. The Green season domestic tourism campaign aims to introduce a period for local tourists to take holidays in the lodges and hotels usually frequented by foreign tourists. So far, the result from private companies has been overwhelming in terms of reducing their prices for lodges and hotels.

NEW VISA SYSTEM TO BOOST ZAMBIA’S TOURISM
Since December 2014, a new uni-visa system has been in place at Zambian/Zimbabwean borders, meaning that visitors to both countries require just one visa. This applies to all 40 countries that currently require a visa for either country. The new visa system has developed due to an increasing number of joint ventures between Zambia and Zimbabwe that have looked to improve the lives of citizens in both countries, as well as the new open border policy that exists between the two countries.

ZAMBIAN GOVERNMENT WANTS TO ATTRACT INVESTMENT AND BUSINESS TRAVELLERS
Zambia’s tourism industry will become more competitive following the removal of the visa requirements for all nationals of the Common Market for Eastern and Southern Africa (COMESA) who enter the country for official business. Zambia will now compete with countries such as Botswana, Namibia and South Africa, where visas are not required. This is very important as it will now be easier to visit Zambia as the barriers to entry have been removed. Zambia has lots to offer in terms of business and conferences, as well as ecotourism.

NEW AIRLINES AND ROUTES ATTRACT NEW TOURISTS AND BUSINESS
Public investment and public initiatives, stable economic growth and the potential of Zambia’s tourism industry has attracted the attention of several airlines. The government has started the implementation of the US$31.0 billion project Link Zambia 8000, which will develop 8,000 km of road infrastructure and create an internal network. The launch of a domestic tourism campaign in 2014 by the Zambia Tourism Board (ZTB) has contributed to the performance of the industry through increased local participation. As a result, airlines are showing interest in providing new investments. For example, Fastjet plans to invest US$15 million in Zambia and new airlines such as Rwandair and Flyafrica plan to expand their businesses into Zambia and other African countries.

The last time we talked about Chicken Farming we were tackling the issue of markets. The challenges that our members face when it comes to access to markets. Most members now have knowledge of raising chickens-the costs of raising chickens, the various diseases that affects chickens and how to prevent or manage them. A lot of companies in the industry have done well to train new and existing farmers on how to successfully raise chickens.

So knowledge of raising chickens is not an issue, the issue here dear forumite is that of the Markets! How to sell chickens, where, how much and ability to get your monies regularly without having to chase customers who would have defaulted.

Marketing is our number one problem and we have been cracking our heads trying to break the marketing puzzle. The good news is that we have come up with a potential solution to the problem.

Company Formation

We also know that there are several companies, supermarkets, hotels and restaurants that buy chickens. They however only buy from large scale poultry producers. You cannot approach OK Supermarkets and tell them that you would like sell to them 100 chickens, they will simply turn you away because they have no time for farmers with low volumes.

So on our forum we have various farmers who are raising chickens on an individual basis. ZBIN is therefore asking members to come together and form a company. They will supply chickens on credit to this company and the company will in turn sell chickens in bulk to large supermarkets. The company will be responsible for negotiating contracts with supermarkets, restaurants and other large scale buyers.

Farmers benefit by knowing that they have a ready market for their chickens and know that they can receive their money in bulk thus enabling them to plan and concentrate on raising chickens.

Phone Call from South Africa

A few minutes ago I was on the phone talking to a ZBIN member who is based in South Africa. He is an ex buyer who worked for one of the leading supermarkets. He is willing to offer assistance to farmers on branding and setting up of the company, the key contacts and discuss about opportunities and risks in the sector. So we are glad to have expertise on the forum and hope to take advantage of it.

What Next

We will start slowly with just a few serious farmers We are looking at possibly 20-30 farmers on the forum who can provide 1000 to 2000 chickens on a regular basis. With time these farmers can expand their operations or they recruit more members. This initiative is strictly for members who are already doing farming.

To discuss on modalities of doing this, we are inviting chicken farmers based in Harare to get in touch with me on +263 774081808 (strictly no phone calls), Catherine Shava on +263776196313 or Theresa Sithole on +263 772 215 695. We are planning to hold a meeting on the 25th of February in Harare. This will be an opportunity for  members to provide input on this initiative. There is no registration fee but you have to be Poultry Farmer.

Muito Obrigado