Government has urged stakeholders in the tourism industry to market Zambia to other countries in the world as an affordable tourist destination.
Tourism, Environment and Natural Resources Minister, Michael Kaingu, said the recently introduced visa fees on tourists from other countries would not make Zambia an expensive tourist destination.
Mr. Kaingu said this during a panel discussion at the Euromoney Zambia Investment conference, which closed in Lusaka today.
He asked the stakeholders to offer competitive prices for their products.
He argued that Zambia was an affordable tourist destination as it has a variety of unique tourism products that other countries did not have.
Mr. Kaingu noted that the money collected from charging visa fees was important to Zambia’s economy, saying it would be used to develop infrastructure, which was key to the industry.
He has since challenged entrepreneurs in the country to invest in the tourism industry by developing places with natural attractive features such as waterfalls.
And Zambia Wildlife Authority (ZAWA) Director General, Lewis Saiwana, has disclosed that the authority would soon begin to issue concessions in game reserve areas to interested investors in order to help develop the tourism industry.
Dr. Saiwana said the move would also help develop infrastructure such as roads in game management areas and make them accessible for game viewing by tourists.
He added that the move would also help protect game animals.
He further revealed that the concession agreements to willing investors would range from 10 to 20 years and a maximum of 35 years in special agreements.
The ZAWA Director General has since challenged Zambians to actively participate in the tourism industry instead of merely seeking jobs in it.
Meanwhile, Sun International Divisional Director, Graham Wood said there was an increase in air traffic to Livingstone city.
Mr. Wood said the increased air traffic was healthy for tourism activities in the tourist capital as it was the mainstay economic activity of the city.
The Euromoney Investment Conference attracted various business delegates from various countries and Zambian entrepreneurs.
He disclosed that his company would commit US$500, 000 to various social programmes in order to help alleviate poverty in the communities around Livingstone.
ZANIS/CM//KSH/ENDS
….you guys have got a long way to go. And please do something about you tiny filthy airports and roads…eish!
#1 I fully agree. Kaingu and co. have a lot of homework to do instead of singing the same old tune. Why should a German tourist for example, bother to take a 14hr journey from Frankfurt to Lusaka via London, Nairobi, Addis Ababa, Harare etc. when he/she can directly fly to Capetown, Windhoek and Dar within 9hrs?
It is not the visa fees that make the country expensive. These are one off payments. It is the kwacha strength! Can you imagine, at the current rate, in rand terms, R20 plus for 1 litre of petrol in Zambia! Petrol is about R10 in S.A. Someone travelling from U.K, USA when he hears that wont proceed to Zambia. Ask any Zambian staying outside how Zambia has become expensive. Imagine this with K25,000.00 will buy you a bag of cement if you convert it in Rands. In rand terms you can buy a bug of cement at R45.But to buy a bag of cement in zambia wirh rands you will need over R150 (at K65,000.00 A BAG) which is rediculous.
#3 Anonymous You are on the spot. ZMK has become too strong for its own (economy) good. It even hurts (not just tourism)but the common man on the street only most dont realise it because some politicians have lied to them that a strong Kwacha is means more money for them. Yet prices keep going up and and their purchasing power diminishes.This strong kwacha is only helping to boost imports “luxuries” of second hand cars and pirated good from Dubai, Dar etc. And Govener Caleb thinks he can almost triple the GDP growth (to 12%)on such slippery ground.Guys please think!
The best thing that can happen to Zambia is increased employment levels. This can be achieved if local goods and services have competitive advantage over goods from outside. Botswana recently devalued their currency in order to make their daimonds competitive. Given $100 for instance, I will buy more goods in S.A or Botswana than in Zambia. This is what the Government cant see. I believe our system is disjointed somehow for us as a nation not to see this.
Kaingu is being .. what’s the word? .hypocrity? Maybe. But listen to my story.. I am a Zambian potential investor in the tourism sector. I was allocated land to build lodges on. In my absence, I trvel outside the country quite often, that land was re-allocated to a Zambian of Asian origin, corruptly. It is a long story but esnetially, that’s what happened. I have been to Kaingu’s office, ven before he inherited that office, but my case has been going on now for three years. Going to Kaingu’s office was because this land is in a Forest reserve and this person was given title deeds by lands Mininstry in a Forest reserve.
So much for encourging Zambians to invest in the trouism industry. Am
Am still fighting to reclaim my land to today. So much for encouraging Zambians not to “become employees but investors”
Goods referred to must be of the same quality or product. E.g in I will buy more loaves bread of the same quality in S.A than in Zambia. This can be interpolated to all other goods and services i.e room rates, transport, food etc. The same goes for farming and mining products. The buying capacities not the Zaros on our currency is what matters.
#6-7 Interested. Please keep pushing dont give up. I feel sorry for my country. A similar thing has being done to Kavindele over the now hot NW Railway project
The current exchange rate is something that is controversial to say the least. Basically if Zambians really had the will to develop, they would realize that it is somehow a good thing.
I personally look at it this way. Zambia produces little technology. If Zambians wanted to develop, they would take advantage of the strong currency and import technology needed to build there manufacturing sector and build infrastructure.
However afterwards, they would prob govt to depreciate the currency so that there manufactured goods can be competitive in the foreign market.
This the way i see it. In the short run, a strong currency is a good thing for a country that wants to develop.
cont…
In the long run however, it is a bad thing as our produced goods will be too expensive.
It actually depends on how you look at it and which sector of the economy is the strongest.
From what i can tell, so far farmers have complained about the current strength of the kwacha. Im sure pretty soon, mining companies will be next.
# 10 you are spot on. But this is not the case now. A strong kwacha has limited gains in the production industry,especially in Agriculture. For traders, yes somehow this is having a desired effect though most trading is done by small to medium sized enterprises inadquate to impact on the overall economy.
#6-7 I’m saddened by your experience. If this is how they treat potential Zambian investors then we’re better off abroad.
#10,11Crazy Zambian I this on the BOZ article:Someone from CSO?. How much has been spent on electric trains and optic fibre imports in Zambia? Also how much has been spent on second hand cars & Dubai trips? Someone from ZRA where are u making the most in taxes? As forthe mining firms I know that these earn their income in USD and its banked overseas only a trickle is released to meet local supplier/payroll/tax obligations. They dont need a strong Kwacha to buy dollars for buying mining equipment. THEY SELL THEIR COPPER IN DOLLARS!!SO THEY HAVE PLENTY DOLLARS Crazy Zambian pick up an economics book to read and please think through before rushing to the keyboard.I apologise if this sounds rude
#10 you are spot on, but the horny, alcoholic, greedy and dull ministers in GRZ cant see that. I suppose they are blinded by those big bellies the carry around
As for creating a technology base using cheap forex. A lot more than cheap forex goes into making a country competitive in a particular industry. Kindly google Micheal porter’s National Diamond theory. It outline 1. factor conditions 2. Demand conditions 3. Firm structure and rivalry 4.Related and supporting industries. Other scholars have added GOVT ROLE and CHANCE to this model. All these need to be addressed if we are to develop a competitive technologically based industry. Cheap forex is a drop in the ocean and is actually counterproductive because the final goods will be expensive to the outside world. Our local demand is big enough to support what you envisage.
….whatever the case somebody intelligent needs to get out there and do something about the Zed economy instead of typing “supposedly” answers…
Why are people here wining about a strong local currency? why must you now demand that the kwacha be artificially devalued? if you want a weak local currency, go to Zim next door and and come and tell us what you will find
# 18 it is not for the sake of a ‘weak curency’ a lot of other things things need to be considered. One such thing in Tourism terms is affordability. A tourist from America comes to Southern Africa with his/her dollars. He hires a truck to take him around but he finds that if he drives into Zambia he/she discovers that she will have to spend twice as much of her dollars on fuel in Zambia that in all the other neighbouring countries. You see the kwacha rate has made her think twice about getting to Zambia. He/she may decide to go in because she may believe that it is worth it. But if she discovers that it was not worth and that her dollars are better spent in Botswana or Southafrica. You have
You can not tell me Zambia is an affordable tourist destination when small hotels like the Zambezi sun charge over $450/night.. Not even world class resorts charge ridiculous amounts like that. Maybe instead on concentrating on attracting foreign tourists, we need to make tourism affordable for the local people so they can begin to appreciate the vast resources that our country has to offer. Statements like Kiangu’s shows how out of touch our leaders are with reality. And yes do something about the Airports
#19 Cont’d have lost him/her she will not come again. Consumer confidence???. The inflow of Tourists goes down so does our revenue.
#19 things in zambia have always been comparatively expensive in zambia even when the kwacha was much weaker.i’m not an expert in this field so correct me if i am wrong.. but zambia imports more than it exports.. taxes in zambia are generally high so if we import more and we tax more on imports the result is that goods will be more expensive in zambia strong kwacha or not
# We eventually be a dumping ground if thats what you want to say. I does not matter if things where like that before. We must find a way of spurring our own goods now that we are ina globe market. Besides thats why we are where we are poor. Employment levels cant not rise if we do not increase and support our exports.
In simple language. I have given examples of commodities that affect both the common man and the tourist.
2006 1USD = 4200ZMK, PRICE OF BREAD OR MOSI 3PIN= 0.71 USD
2006 1USD = 4200ZMK, PRICE OF 50KG B/FAST 25000PIN= 5.95USD
2008 1USD = 3200ZMK, PRICE OF BREAD OR MOSI 5 PIN = 1.88 USD
2006 1USD = 4200ZMK, PRICE OF 50KG B/FAST 50000PIN = 15.62USD
So is the Kwacha really gaining strength when prices are rising? Or is it a lie?
#20 I concur with you. tourism in zambia is way too expensive for middle class european or American or Japanese. Even at price of $180 per night as Pamodzi hotel or intercontinental Hotel charges. For $400 an American can get 7 days flight and hotel covered plus drinks in Cancun one of the top tourist destinations in the world. Secondly, Our tourist attractions are just plain poor. Yes we have the vic falls and the safaris but for 7 days what else would a tourist do? What I mean is that Zambia needs more support services like good restaraunts, Theatres for an evening show and etc.
correction:
2008 1USD = 3200ZMK, PRICE OF 50KG B/FAST 50000PIN = 15.62USD
sorry for the mistakes, too much on the desk!
2006 1USD = 4200ZMK, PRICE OF 50KG B/FAST 25000zmk= 5.95USD
2008 1USD = 3200ZMK, PRICE OF 50KG B/FAST 50000zmk = 15.62USD
You guys, unrelated to this discussion- how can I read the post article about “ECZ eases requirements for Director”. I can’t afford subscription
true as i said it is not the rate of the kwacha that is affecting prices in zambia firstly the rate of kwacha is affected by the decline in the dollar as well…in most countries around the world the currency is’stronger’ now when put next to the dollar,second prices world over have gone up i live in china where things are very cheap,in 5L 2005= cooking oil $4 now 2008=$10 and this for a country which is one of the biggest agricultural producers and a net exporter.If a country which is self sustaining has such a marked increase in prices..how much more will we who are import from outside suffer? regardless of kwacha value…Zambia is expensive, even flights to Zambia cost more before ..
..cont.. before u even land in the country. And you people with all these ideas Zambia need more restaurants and more services improve aiports..all true but face facts GRZ is poorer(not in terms of resources), than most of these other countries. the tourism industry and prices in Zambia do not stand on their own they are related to the economy.. GRZ no money due to plandering, poor management….u can’t improve tourism infrustructure with insufficient funds
I predict Zambia economy crushing if Magande and Fundanga do not siphone those Dollars and re-orient our economy. What we Zambians want is a stable exchange rate..not strengthening kwacha while our local prices are going up. Tourism is becoming expensive.. the mines are no longer meeting local obligation in kwacha terms as they see dimishing kwacha returns per ton of copper sold.
We continue seeing zambia becoming dumping ground because it is cheaper now to import than export.. These *****s in Fundanga and magande..they need to be sucked.
There is a high percentage of Zambians that rely remittances from diaspora. If the Zambian economy has improved, locals aught to generate enough cash for their day today needs. However, the economy has only improved to thos in jobs. Meaning, it has become more expensive to support families in Zambia for those living abroad. Fundanga knows that the people being punished are the poor, because they are receiving less every day, while spending more every day. Something will have to give. People will invest elsewhere if Kwacha continues to add no value to their investment portifolios. Even donor projects must have suffered under the current economic scenario. Economics yabufi guys tulebomfya
And if you consider the prospect of an investor building a ‘hydro electric generation plant’ or even a toll road, how much would they spend if a volume of concrete in Zambia is three times that of a developed nation?
#28-33Dear ALL. Thank you. I wish we had people like you in Cabinet. Signed off
The post reports “K1 trillion Mongu-Kalabo rd bid for bridges shocks govt”!! See, the Zambian government has leaders who do not understand the impact of their economic policies on ordinary people. Which contractor would undercut their price knowing that Civil works will require heavy usage of diesel (2.15 dollars a litre), cement (25USD), and steel works? With 1UD = 3200ZMK, it will cost a fortune to build these bridges. Add the markup, bribing costs, interest charges if you borrow locally or internationally! Stuck, no infrastructure bane, forget mukalaenda fye notubwato. Do these leaders speak to each other?
#16. Theoretician
Perhaps i should explain what i meant by short run/long run.
Now i never said Zambia should take advantage of the kwacha to build it’s technology base. I said Zambia should take advantage of the strong Kwacha to build it’s MANUFACTURING BASE by importing all the technology needed to produce manufactured goods.
Here is an example. You want to start a computer assembly plant. You’ll need a bunch of machines (technology) that NO COMPANY in Zambia produces. Maybe robotic arms (i dont know whats needed).
With a weaker Kwacha, it would have been expensive to buy these machines but with a stronger kwacha, it is cheaper to buy this stuff and you can buy a lot more with
cont…
a stronger currency than a weaker one.
Now you said our local demand is big enough to support manufacturing industries. WRONG. Zambia has a population of 10 million people (approx.) and our GDP per capita is $900. And about 60% – 70% of the population is unemployed. For a manufactured base economy to be fully developed and supported, it needs to export.
Now i said in the short run a strong Kwacha can be a good thing because a bunch of companies can take this time to import all these machines and equipment to build there MANUFACTURING BASE. However in the long run it is bad because after they have bought all these machines, they have to sell them somewhere and so a weaker
cont…
means cheaper manufactured goods at more competitive prices on a global scale.
Thats what i meant by long run = bad thing but short run = good thing.
sentence correction: “However in the long run it is bad because after they have bought all these machines, they have to sell there manufactured goods somewhere and so a weaker….”
“and so a weaker currency means cheaper…..”
1st, TOURISM in zambia just like any commodity has ever been prohibitive to afford. There are so many things which make a commodity costly even if its direct cost is seemingly cheap. The main factor that makes tourism costly in zambia is the non-existence of the transport infrastructure. 1stly, coming to zambia from abroad is costly, 2ndly, when a tourist arrives at our confused and dilapidated lusaka airport there is literally no systematic public transport from (or to) airport. There4 tourists find themselves having to book a cab to lodging points. This booking of cabs even continues throughout their stay in zambia because most avoid jumping on our fit-4-slaughtered-pigs public transport.
cntd. Theres a stupid attitude n misconception in zambia where mini bus conductors/drivers (including the general public) in Z think you shouldnt complain about two passengers sitting on 1 bus seat. The conductor will arrogantly ask u to go n book a cab, “ba some of us”. Anywhere u go in this world, really, if u r a tourist u want to use public transport. Because u will ve an opportunity to come close to the local pipo n learn about some of their cultures. 1 can learn little on a taxi. InterCity connections are also crucial. 1 is very lucky to survive thugs at Kamwala Bus Station. If ur money and documents r stollen, that also increase ur cost…
…due to obvious repercussions. At the end of 1’s holiday 1 wld like to buy a few souvenirs for friends and relatives. This also calls for more bookings as theres no space on our buses where 1 can put his/her baggage. Poor transport infrastructure alone discourages families coming to Zambia. We lose a lot through poor systems. In short tourism in zambia is very costly even without the above issues. The govt must simply work on the infrastructure.
Crazy ZAMBIAN CORRECTION:local demand is big enough :WAS TYPING ERROR. is should have been isnt. if you read the preceding setence I mention export. Any let agree to disagree
£8000 FOR 2 PEOPLE FOR TWO WEEKS AND THE ANIMALS DONT EVEN SING TO YOU!!!!KEEP YOUR TOURISM!!!!
[44] you are cracking my ribs, you have watched too much Lion King….
It seems Zambian ministers have very low standards. Anyone who thinks Zambia is ready for any form of tourism needs their head to be examined. Transport infrastructure is of poor standard, there is no affordable accommodation, violent crime is rife, the place is dirty (public toilets are a disgrace), yet our ministers see nothing wrong. Recently, Mbulakulima was giving a list of tourist attractions on the Copperbelt – is it really safe for young white girls to go to the Dag Hammarskjold monument on their own? And once they get there what is so interesting to do there anyway? I know it is not the job of government to invest in any industry … cont’d
… cont’d. but it is government’s job to bring sanity to the industry. They need to get more involved in steering investors in the ‘right direction’. After all they seem to put a lot of effort into sorting out the mining industry. But they seem to leave transport totally unregulated and with no incentives. They want to build a railway line to Angola before sorting out the railway line from the Copperbelt to Vic falls. Why? There is no focus on making the experience of Zambian a happy one! A clean, efficient and comfortable railway journey would be a hit with both Zambians and tourists. Countries like Kenya and Gambia have succeeded, but we are light years away!
Zambia is very expensive and the ignorance by business houses is shocking. Many Zambian businesses (e.g. hotel industries including The Post Newspaper) believe there is a dollar tree abroad where people pick dollars like we do mangoes. While you can find a good hotel in the U.S. which can charge you $55 a night in Zambia it could be always $100-200! They do not know that it is not so easy to find such money abroad. We will not improve tourism. Even locals are charged the same, it is time we learned from others. A friend paid $3,000 for his wedding at Pamodzi while we recently paid $400 (we were given a $100 discount by management) for a function at a Holiday Inn in the U.S. for a
ctd from 48. similar function. The room was set including the PA system, and for $400 we thought this was a good deal. A friend working in the UK recently made an inquiry to spend a week in L/stone with the family (with 3 children). They failed to because they could not afford the hotel charges despite both the husband and wife have been working for over 5 years! The same family can afford elsewhere but Zambia. Motherland Zambia amazes me.
@ 47..Chitapankwa,
What are you on about the transport sector was sorted out ages ago,
by a certain Nkandu Luo,when she decreed that the buses be painted sky blue…LOL
#50 I still think that transport needs a lot more work. Operators need to work together to sort out common standards of service. Of course, as #49 has pointed out, there seems to be a tendency to price everything in dollars and the prices bear no relation to actual cost. I have had good value-for-money holidays in Florida, Dominican Republic, Spain, Jamaica and others, and I can honestly say it will be an uphill battle to convince people to choose Zambia over these and other destinations.
@ Chitapankwa..#51
Cheer up mate, was only injecting some humor in discussion,