THEMA: INDUSTRY POSITION PAPER ...
25 Feb 2010 20:08 #131195
  • silentwolf
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  • silentwolf am 25 Feb 2010 20:08
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Zur Information wie die Offiziellen den Aufschwung in der Tourismusbranche behindern.
INDUSTRY POSITION PAPER ON PARKS & WILDLIFE MANAGEMENT AUTHORITY GAZETTED FEES FOR 2010
VICTORIA FALLS

11th February 2010

On Thursday 4th February 2010 tour operators were invited by the local parks management to a meeting, where among other pertinent issues that affect the industry and the authority, the issue of user fees was discussed. We have subsequently received notification that the proposed fees have already been gazetted and will be implemented from 1st May 2010. As industry we are extremely concerned with both the review and the manner it has been conducted.

1. Notice Period
The three months notice period is inappropriate and sadly differs from that negotiated and agreed with the industry. While industry acknowledges the authority’s prerogative to amend its user fees from time to time, the authority agreed to abide by the generally accepted industry standards. Many of the major contractor sign for twelve months, and brochure itineraries which are distributed to the global distribution networks. Mid -term changes like the ones proposed causes serious and unwarranted friction with contractors leading to loss of business. The reality is therefore that the local operator who has already contracted rates will have to bear the additional cost. Absorbing such costs lead to a whole lot of challenges for an industry in distress including, but not limited to job losses, delayed or complete curtailment of planned capital expenditure, or financial distress. During protracted negotiations between 2001 and 2003 the Authority agreed to give a year’s notice of its intention to amend its fees and we are requesting to the Authority to abide by the agreement.

2. Quantum of increase
While industry appreciate that the Authority has not increased its international fees for a number of years now, various issues militated against increases, the following being some of them:
2.1 When these fees were increased back then, the quantum was huge and out of line with regional averages. F example, Zambia charges US10.00 as entry fees against our current US20.00. They have not increase their fees yet Zimbabwe is increasing to US30.00
2.2 Over the last nine years tourism has been on the decline and to increase fees would have been counter-productive given the negative perception of the country
2.3 In the last two years the global economy has been in decline and only expected to start growing again in 2010
Sadly the proposed increases are so out of sync with both local and global inflation and are sure to cause disquiet in the markets.


3. Growing disparity between local and international fees
Since the introduction of the multi- currency regime locals have began to contribute meaningfully through the payment of fees. However the huge disparity between local and international rates is a constant cause of consternation in the market. There also does not seem to be any particular model in setting such fees. For example foreigners pay 100% more for sunset cruises (up from 40%) while they now pay 600% more for entry into the Falls (up from 400%). Industry is moving towards convergence and best practice where seasonal rates apply and time bound specific dispensations for specific markets are given. It is imperative that Parks begin to address this gap than allow it to grow. We have as a country to be sensitive to market sentiments if we are to capture meaningful market share of an increasingly informed travelling public.

4. Loss of market share
In setting prices particularly for Victoria Falls it must always borne in mind that we have fierce competition. Since the inception of the GNU, the public perception of Zimbabwe has improved and travel warnings reduced or withdrawn all together. As a result, we have seen a very material shift in proposed itineraries to include Zim in future brochures. Actions such as these reverse all the gains we have begun to make in regaining market share, and sadly we shoot ourselves in the foot. We are already receiving very adverse feedback from very upset agents who are unwilling to absorb this cost and are looking at sending their clients to Zambia. The impact of the loss is far beyond the entry fees as the country will lose bed-nights, visas fees and activity income.

5. The World Cup Hype
It is indicated in the accompanying letter that the fee increase is primarily motivated by the expected increase in arrivals due to the Soccer world Cup in June.
5.1 If this is so, we expect the fees to apply during the course of the tournament, reverting to the normal rates thereafter
5.2 If this is the case, a case can be made for tour operator’s clients exemption and higher fees being collected for walk in clients
5.3 It must be noted that FIFA has already cancelled about 13 000 rooms with more coming up monthly. This may be an indication that much lower numbers are expected to attend. We understand ticket uptake in some of the key markets is very slow.
5.4 There is need to appreciate that most soccer followers are in the low to mid-income bracket, will most likely spend between two and four weeks following his team and will not have too big a budget for excursions
5.5 We still have very restrictive immigration/visa rules that militate against last minute tours.
5.6 The bookings currently being received by most operators are from South African nationals and residents who are running away from the soccer crowds. If they are going to stay away from home for a month, then we can expect tight budgets.
5.7 Four months before kick -off we are not aware of any increased seat capacity into Victoria Falls which could be an indication of either lack of capacity to move people out of South Africa or low demand.
5.8 A quick survey will show that, not only have our traditional tour series during this period cancelled, but that very few bookings have been received thus far.

Given the above factors our expectations as a country and as businesses need to be moderated so that we benefit without alienating those visiting the country. You may be aware that the South African airlines have been hauled before their Competitions Commission for the exorbitant fees they have published for the tournament duration and it is highly likely that they will be reviewing downwards their rates. Our neighbours are not increasing their park fees?

6. Recommendations
6.1 Industry is of the view that the proposed fees be set aside in their entirety
6.2 Any proposed increase be effective 1st January 2010 and be finalised before the commencement of the selling season, which open with ITB in March 2010.
6.3 Increase should take into account the inflation environment, both locally and internationally
6.4 That proposed fees are regionally comparative and competitive
6.5 That the authority seek to close the very wide gap between local and international fees and such gap be premised on a meaningful and predictable model
6.6 We should be looking at growing the volumes and not increase the price to increase revenue.
6.7 Increases are discussed with stakeholders. Being at the forefront of dealing with agents and prospective clients, we may be in a better position to make positive contributions to discussions.
6.8 Increases should be linked to planned development work in the parks estates as in many cases operators are carrying maintenance work on their own.

The industry has already received the proposed increase and the reaction is far from positive to say the least. We need a quick response to inform the travel agents and public.
It is our sincere hope that the above issues will be given urgent attention so that our combined actions help promote the revival of the industry.
Ich glaube, ich brauche hier auch eine zynisch besserwisserische Signatur! ;)
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25 Feb 2010 20:42 #131204
  • baboon
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  • baboon am 25 Feb 2010 20:42
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... mal ne blöde Frage: der Bericht kommt aus Bots?

Danke und Grüße

baboon
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25 Feb 2010 20:48 #131206
  • silentwolf
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  • silentwolf am 25 Feb 2010 20:08
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baboon schrieb:
... mal ne blöde Frage: der Bericht kommt aus Bots?

Danke und Grüße

baboon

Nee, Zimbabwe.

Gruss
Thomas
Ich glaube, ich brauche hier auch eine zynisch besserwisserische Signatur! ;)
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