The youthful tourism Minister Mangaliso Ndlovu has revealed that the COVID-19 hard-hit tourism industry is operating at 40% capacity since travel restrictions were imposed to curb spreading the pandemic worldwide, The Standard reports.
In an interview with the publication, Ndlovu said:
We have lost business in the first half of the year. As you know, most resorts are still pretty much closed. We are likely to shed to 40% in the worst-case scenario, although we hope business to improve in the last quarter of the year.
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Ndlovu also spoke about the government’s response to the predicament that has befallen one of the country’s biggest industries and said:
We are launching the growth recovery strategy in the next two or three weeks. We want to look at the cost of tourism and put incentives.
Remember from the government side value-added tax (VAT) has been removed. VAT is 15%. In my view, it will be felt by tourism consumers. So business will now also need to meet government halfway to boost tourism.
Currently intercity movement is restricted. But we believe at some point it will be opened.
It is still not clear when travelling will resume but other countries like Kenya and Rwanda are already opening their airports to international travel.
More: The Standard