PRESENTATION TO THE INAUGURAL NATIONAL TOURISM STAKEHOLDERS CONFERENCE ON THE ROLE OF TRANSPORT IN TOURISM DEVELOPMENT BY DR PETER CHIKUMBA AIR ZIMBABWE GROUP CHIEF EXECUTIVE OFFICER
MARCH 25-26, 2009
THE CONTRIBUTION OF AIR TRANSPORT TO SUSTAINABLE ECONOMIC DEVELOPMENT
Salutations: Honourable Vice President Amai Mujuru Right Honourable Prime Minister Mr. Morgan Tsvangirai Honourable Minister of Tourism & Hospitality Industry Eng W Mzembi All Honourable Ministers and Members of Parliament here present Senior Government Officials Members of the Diplomatic Co here present Captains of Industry, Ladies and Gentlemen All Protocol observed.
As we prepare to re-launch our Tourism Strategy at the National Level, it is important that we recognize the existence of developments that have taken place elsewhere in the world in general and in Africa in particular. This approach will enable us as a Nation to avoid creating what already exists. My presentation is therefore taken from experiences that are known to be successful elsewhere and which are currently in use in other countries worldwide and here in Africa. The following are high level strategic approaches that will help in understanding and appreciating what we in Air Transport ought to do in-order to contribute meaningfully to the development of Tourism in Zimbabwe as part of the Short Term Emergency Recovery Programme (STERP) and going beyond. The aviation industry has a vital role to play in achieving sustainable development in Zimbabwe. The expansion of air services is a necessary condition for the development of a more diversified export base in the country and for the expansion of tourism to the country. Improvements in the air transport infrastructure would help to raise living standards and alleviate poverty in Zimbabwe by lowering transport costs, supporting more rapid economic growth and increasing personal mobility. Moreover, the expansion of the nature-based tourist industry offers not only a significant source of future employment and income growth but also an effective mechanism to improve the conservation of the environment and, in particular, Zimbabwes protected areas.
Africa accounts for just 2% of the world GDP but hosts 13% of its population. As a result, GDP per capita in Africa is the lowest of the worlds regions. The general picture is one of underdevelopment, political instability, economic volatility and pervasive poverty. While there are major opportunities to improve living standards and alleviate poverty through sustained economic growth, the combination of a poverty trap, poor human capital and the threat of HIV/AIDS poses formidable challenges to policy-makers across Africa
Investor confidence and investment have direct causalities of prolonged instability. As a result, despite its great growth potential and availability of natural resources, investment both foreign and local has been poor and erratic in the region in recent decades. In order for Africa to realize its growth potential, there has to be a rapid and decisive reversal of this trend that is widening the infrastructure gap compared to other regions in the world.
Africa is the smallest region for air services in the world, reflecting its low income and lack of air transport infrastructure. It accounted for only 4.1% of the world passenger traffic in 2002 and just 1.6% of the world air cargo traffic. Moreover the use of air services is very concentrated within Africa: 10 biggest national markets account for 70% of the total number of passengers travelling by air in the region and 90% of cargo flights. Infrastructure i.e. airports and air-traffic management-is essential to the growth and functioning of air transport services. In many African countries, more than elsewhere in the world infrastructure inefficiencies coupled with limited competition are making market access both difficult and expensive, Zimbabwe is not an exception in this regard. Despite significant technological improvements, the environmental impact of the expansion of air transport continues to be a source of concern. Aviation causes air pollution and noise at ground level, together with ozone layer depletion and global warming effects due to emissions in the troposphere. However, in Africa the beneficial impacts of the expansion of air services on economic growth and poverty alleviation are most likely to outweigh costs in terms of climate change, noise and congestion. Summary recommendations Aviation safety and security across Africa remains a major source of concern and an obstacle to both the integration of Africa countries into the world economy and to the healthy development of the tourism sector. The fact that Air Zimbabwe has received international registration after the IATA Operational Safety Audit (IOSA), is a relief, in this area of concern.
The 1999 Yamoussoukro Decision should be fully implemented, leading to the radical reduction of state control over the aviation industry. Besides establishing the appropriate bodies and mechanisms to translate this decision into action, governments should refrain from using airlines and airports as easy targets for new revenues. They should only charge them those costs which are strictly justified in the provision of essential supplies and services.
The main challenge to a number of African countries is to put an end to a situation of economic stagnation and poverty. It is my message in this presentation that the expansion of air services in the continent, and the promotion of more diversified external trade and tourism sectors, offer an opportunity to put in motion a virtuous cycle based on economic growth and sustainable development.
Studies also confirm the need to implement the triple partnership of air services proposed by the Air Transport Action Group (ATAG); i) improving air transports efficiency and environmental performance ii) A partnership to develop infrastructure and links with other transport modes iii) A partnership with communities and other interest groups to promote exports and tourism.
Specific actions to contribute towards the Short-Term Emergency Recovery Programme
The Government of Zimbabwe and Tourism Stakeholders should immediately engage willing partners in the SADC and COMESA Regions to operationalize the implementation of the Yamoussoukro Decision of 1999 by removing limitations in the current Bilateral Agreements. This way, the two Sub Regions will set the pace for moving towards the Open Skies regime at least at the African Continental level.
The Government of Zimbabwe should move with speed to create the right environment for investment by both local and international private investors of like minds to obtain majority shareholding in the National Airline thus ending the monopoly in the largest Aviation operator of the country. This move will create an opportunity for immediate recapitalization of the National Flag carrier.
Stakeholders should give immediate priority to Aviation infrastructural development and modernization in-order to meet international standards in-terms of airports, air navigation facilities and holiday resort facilities. This will have the effect of offering a seamless destination thus allowing more international airlines to fly in and out of Zimbabwe without fear of substandard facilities. We urge authorities who collect levies and taxes to make sure that such funds are channeled towards infrastructural improvements and in this regard airlines are willing to contribute positively.
The above issues represent the type of freedom that the Airline Industry is seeking for the world over with regards to leveling the playing field in-order to do business the way business should be done.
THANK YOU.
References: A study for the Air Transport Action Group by Oxford Economic Forecasting Short Term Emergency Recovery Programme Air Zimbabwe Turnaround Business Strategy