Rbz urges tourism sector to grow economy

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Rbz urges tourism sector to grow economy

The Reserve Bank of Zimbabwe has challenged the tourism sector to exploit its full potential and increase its contribution to national economy.

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Addressing delegates during a briefing on the apex bank’s tourism support facility, Governor Dr John Mangudya, challenged the hospitality sector not only to grow their potential but increase it as well.

The RBZ Governor further challenged the hospitality sector to contribute 20 percent to the GDP in the mid-term and try to earn 10 percent of GDP by year end. “I want to challenge the sector to grow to around 20 percent in the medium term. Right now you are contributing 11 percent to the GDP, as you work towards your 100 day plan, I think you need smart objectives and strategies.

“I challenge you to contribute about 10 percent foreign currency receipts by year end, currently you are contributing 5 percent, so I want you to double that.

‘‘The economy earned $5,5 billion this year so you need to earn around 500 million,” Dr Mangudya said.

The sector slumped by $26 million to $151 million in foreign exchange receipts in 2017 from $177 million earned in 2016, which is 2,7 percent of total foreign exchange receipts.

“On foreign exchange generation in 2016 you were at $177 million, it was about 6 percent of total export proceeds in Zimbabwe.

‘‘This year, our figures show that you are at $151 million in 2017, which is about 5 percent of export receipts, but when we talk of total foreign exchange receipts into Zimbabwe you are at 2,7 percent ,”added Dr Mangudya.

“In 2017 our total foreign exchange receipts were $5,5 billion, a growth from $5,3 billion in 2016, that means the economy forex receipts went up by 300 million.

‘‘That’s what we earned from exports as an economy ranging from diaspora remittances, international remittances and loan proceeds which is more than the national budget.

“The bedrock of any economy in the world is money and the money comes from production, so we should change our thinking as Zimbabweans, that we don’t need money to do production but we need production to get money,” said Dr Mangudya.