African Sun Goes Green

As our group begins to grow across the continent, we’ve embarked on a journey to become more conscious about the impact our business has on the environment. As the fastest-growing hospitality group in Africa, we pride ourselves in taking leadership in sustainable business practice that preserves our environment and resources for future generations while improving our cost basis and adding value for our shareholders through an improved triple bottom line.

Starting from a challenging economic base in Zimbabwe, where the primary concern was remaining profitable in a hyperinflationary economy, most businesses were not too concerned with the environmental impact of their operations. In addition there was very little incentive from shareholders to deliver on sustainability elements. With the increased availability of environmental technology such as solar water geysers and better access to finance for long-term investments in improved environmental performance, we have adopted an approach across the group which we feel is not only realistic and achievable but directly feeds into our bottom line. For example, we have now started to draft a group environmental policy which includes items such as energy saving targets, waste and water management, energy efficient designs for new buildings, alternative energy uses and emission reduction projects.

Our decision to list on the Johannesburg Stock Exchange (JSE) has also been a driver to re-examine our environmental policies. The JSE launched its Socially Responsible Investment (SRI) Index in May 2004 and to date 60 of the JSE’s top 100 companies comply with the index’s guidelines.

The message we want to take across the continent to other African businesses is that there are many benefits that can be reaped by being responsible. Our commitment is to backing up the actions that have been taken.


Southern Africa's World Cup

Since the beginning of the year most southern Africa media outlets have run at least one story about how their respective countries stand to benefit from the upcoming 2010 World Cup.  And when it comes to sector coverage, it stands to reason that the hospitality sector in particular, has been one of the leading commentators on the potential benefits accruing to them from the event.  Are they being overly optimistic or is this within reason?

Let’s look at the numbers – MATCH, which is FIFA’s ticketing, accommodation and event information technology services company, has projected that 50,000 rooms are required for the event.  To date 31,926 rooms have been committed, creating a deficit of 18,074 rooms.  These rooms will be drawn from the hotel and non hotel sector (bed and breakfasts, guesthouses, lodges). The fact that teams are not allowed to enter South Africa earlier than 10 days before kick-off means hospitality operators around southern Africa, especially those bordering on the host country, could benefit from a marketing drive specifically aimed at hosting these teams and their supporters, while they acclimatise. And believe it or not, the smart money isn’t on the teams seeded to win, it’s those who will be knocked out early but want to stay on to enjoy the hospitality and unparalleled African experience in which sub-Saharan Africa excels.

MATCH has announced their top tier of accommodation providers as Mauritius, Botswana, Mozambique, Namibia, Swaziland and hosts South Africa.  Some countries such as Lesotho, Zimbabwe and Zambia, which have much to offer the tourist have not been included in the list, so does this mean all is lost? Not at all!  Hospitality operators should be pro-actively seeking partnerships with tour operators, especially those based in South Africa, to take up excess capacity.  They should also consider marketing aggressively to source markets.

African Sun has been active in this aspect and has seen good traction as a result.  It also helps that the group’s footprint across southern Africa means we are well positioned to take advantage of the opportunities arising from the first African World Cup.  We encourage all tourism and hospitality providers to put their best foot forward and demonstrate just what a quality destination experience we can deliver, before the globes spotlight passes on. The time is now, Viva FIFA 2010!

Data Recovery SearchWIZ

Optimism in the air

If the optimism at the recent tourism stakeholders’ meeting held in Harare on the 25th and 26th of March was anything to go by, then it seems like Zimbabwe is on the right track for putting in place the correct policies for economic recovery.  Already, Germany, the United States and Japan have lifted travel warnings on Zimbabwe. Although economic recovery is a long-term process and not an event, participants at the conference identified the tourism sector as the most appropriate vehicle for providing the quick-wins that the country needs to regain its status as one of the top destinations in Africa.

Issues discussed at the conference included the need for the country to establish an International Marketing Council, introduction of an ‘Open Skies ‘policy and the creation of a Zimbabwe tourism fund.  The next few months will be very exciting for us at African Sun as the conference resolutions are followed-up with appropriate policies. 

The conference had high-level participation and it was good to see familiar faces from the private and public sectors, diplomatic corps and civil society.  Also present at the conference was the country’s Vice President, Joyce Mujuru, who gave the opening address, and the Deputy Prime Minister, Arthur Mutambara, who gave a passionate address on Zimbabwe’s country re-branding.

African Sun has almost 60% share of the hospitality market in Zimbabwe, so this was definitely good news for us!  With the 2010 World Cup fast approaching and also in anticipation of increasing tourist arrivals in the country, we have embarked on a refurbishment exercise of our key operations to be completed by then.  Our Chief Executive Shingi Munyeza, in high spirits from his 2nd consecutive award as the Institute of Directors of Zimbabwe (IoDZ) Director of the Year, announced the group’s intention to refurbish its hotels.  So far three multilateral financial institutions have been positively engaged for this purpose and with the liberalisation of the Zimbabwean economy and increasing investor confidence in the country lines of credit have become more readily accessible.  

No doubt the global economic crisis means that tourist arrivals will be affected, but if the goodwill and energy in Zimbabwe is there to get the tourism sector back on track, what better time to start than now, since the benefits will be long term?