|
THE tourism sector is projected to grow by 10% this year underpinned by heavy investment to renew the product, Tourism and Hospitality Minister Walter Mzembi said on Friday.
For the past 10 years, the sector had not witnessed major investments as the political and economic crisis took its toll on the industry.
The formation of the inclusive government last year brought in stability into the sector but the product needs a major overhaul to compete with the best in the region.
Mzembi told stakeholders that at the beginning of 2009, the tourism industry was declining but by the close of the year, the industry had registered a 4% growth.
“…the growth phase must be underpinned by a stimulus package. We need investment in order to grow,” he said.
Mzembi spoke as the industry is undergoing fine-tuning ahead of this week’s tourism investment summit.
The meeting, Africa investor Pan African Tourism Investment Summit, runs from tomorrow up to Wednesday and brings together international authorities involved in commercialising legacy projects from previous World Cups and major sporting events with investors, project promoters and city planning officials.
Mzembi said 10 cabinet ministers from Africa will grace the summit as well as a number of financial institutions that are expected to offer lines of credit to the industry.
Local financial institutions are not offering long terms loans due to liquidity constraints leaving businesses to scout for money across the borders.
This week’s summit is a the brainchild of last year’s stakeholders meeting that resolved that for growth to be achieved in the industry there is need for a stimulus package to provide the much needed capital to renew the tourism product.
BY OUR STAFF
 |
Show/Hide comments
Show/Hide comment form