The tourism sector is likely to be depressed in the next six months owing to the political tension that is mounting ahead of next year’s parliamentary elections Zim
sun Leisure group chief executive, Shingi Munyeza has said. Munyeza told an analyst briefing on Zimsun’s six months to September 30, that the “fires of the March 2005 elections which have already started brewing will invite bad publicity which is likely to scare away tourists.
“We have planned for the worst as we do not expect any meaningful business generation from the observer missions,” said Munyeza. Munyeza said the group has put in contingent plans to deal with the ‘dry spell’ that is normally associated with Zimbabwe’s elections. “We will analyse our cost structure to the last dollar and we might even go as far as closing some hotel wings to minimise on cost,” Munyeza said. Munyeza told the group is likely to continue suffering the brunt of the mismatch between inflation and exchange rate.
Munyeza said the current exchange rate failed to reflect the true cost incurred by tourism concerns in their service delivery. He said the continued failure of the exchange rate to chase the rate of inflation was pushing up cost in most of the company’s operations. He said the situation was being worsened by the decline in tourist arrivals.