By: Charity Kauseni
Tourism is potentially one of Zambia’s best prospects for economic diversification and growth. The sector has the potential to play an increasingly important role in stimulating economic growth by contributing to job creation, foreign exchange earnings, entrepreneurial development, infrastructural development, improvements to rural areas and communities, and more.
However, the COVID-19 crisis has hit the tourism economy hard, with unprecedented effects on jobs and businesses. The tourism sector was one of the first sectors to be deeply impacted by the pandemic, as measures introduced to contain the virus led to a near-complete cessation of tourism activities around the world. The sector also risks being among one of the last to recover, with the ongoing travel restrictions and the global recession.
This has consequences beyond the tourism economy as many other sectors that support are taking time to recover. The pandemic’s resultant impact to both the local and international markets included loss of jobs by so many people that were employed in the sector as well as winding up some companies in the industry including some airlines in the overseas markets.
The once buoyant global sector which according to the world Travel and tourism council accounted for over 258 million jobs globally just before the pandemic, worth US$6 trillion representing 9.1% of globe’s GDP is still recovering from severe threat of uncertainty.
Despite all this, the sector was and still remains a key driver for investment and economic growth in Zambia and the world at large.
In as much as the coming in of vaccines has boosted the hopes of tourism businesses and travelers alike, challenges remain. Vaccine roll out will take some time, and the sector is potentially facing stop/start cycles for some time.
While flexible policy solutions are needed to enable the tourism economy to live alongside the virus in the short medium term, it is important to look beyond this and take steps to learn from the crisis, and in its response Zambian President Hakainde Hichilema announced that all travelers to Zambia who are fully vaccinated will no longer need a negative PCR test to enter the country.
‘’We have also reduced visa fees by 50% to just US$25. While the ministry of Tourism has developed packages aimed at citizens to boost local tourism,’’ said President Hichilema.
The president urged tourists from across the world to take advantage of the reduced rates and visit Zambia which he described as a world class tourist destination.
Co-ordinated actions across government at all levels and the private sector is essential for this to happen.
On the other hand, the crisis is an opportunity to rethink Zambia’s tourism for the future. Tourism is at crossroads and measures put in place like reeducation of visa fees will help shape the tourism of tomorrow.
Government needs to consider the longer-term implications of the crisis, while capitalizing on digitalization, supporting the low carbon transition, and promoting the structural transformation needed to build a stronger, more sustainable and resilient tourism economy.
Over the years, the industry has grown steadily to become one of the most important economic segments in the country as a source of foreign exchange. As of 2020, the sector was contributing between 2.8% to 4% of GDP.
The Zambian government has also embarked on a policy of economic diversification prioritizing the sector for creating jobs and wealth.
The potential of tourism development as a tool to contribute to economic growth and poverty reduction is derived from several unique characteristics of the tourism system.
All and above, this pandemic presents an opportunity for Zambia to reconsider its tourism for the future, put in place measures that will help shape the sector.
