Iata has told Zimbabwe’s government that it is disappointed in the country’s failure to settle debt owed to international airlines.
Speaking at a Tourism Business Council of Zimbabwe (TBCZ) convention in Victoria Falls last week, Iata’s Head of Account Management: South and East Africa, Alexandru Stancu, said government must act quickly to pay the debt. According to Bulawayo 24 News, Stancu said: “Governments need to understand the powerful influence airlines play in tourism around the world.”
Stancu noted that previous engagements with the Reserve Bank of Zimbabwe had proved fruitless, saying: “We agreed that a plan be made to unlock the funds bit by bit. Unfortunately there has been no execution of this, yet the funds continue to accumulate.”
Stancu went on to explain that, as of August 2018, international airlines were owed US$136 million in repatriation debt. “This impediment pushes many airlines to review their distribution strategies and eventually to withdraw operations from Zimbabwe, which will negatively affect the country in the long term,” he added. He went on explain that international treaties and agreements allow the airlines to repatriate revenue from ticket sales and other activities from countries of operation.
“When planned carefully, tourism is a positive and sustainable source of national income and jobs with long-term benefits. When it comes to Zimbabwe, tourism represents 10.4% of the country’s total GDP, while one in ten jobs is supported by the travel and tourism sector,” he explained, adding that in order for the country to remain competitive, airline debt should be made a priority.
At the same event, TBCZ President, Tich Hwingiri, called on government to focus on getting national carrier Air Zimbabwe off the ground. He said: “We want aviation infrastructure to be modern and reassuring, supported by developing and improving airports such as what happened at Victoria Falls, Joshua Mqabuko Nkomo in Bulawayo and in Harare. In this regard, the local airline Air Zimbabwe is a must-have. That’s how we can enable connectivity between local and international destinations,” he said. Hwingiri also added that he was confident the debt owed to international airlines would “get the attention it deserved”.
