More hotel Guests in 2011......

Expecting good tourism growth in 2011 According to the ITB World Travel Trends Report 2010/2011 world tourism is recovering strongly in 2010 from the recession and is firmly back on the growth path. A new record figure for international trips will be set this year, while spending is recovering well from a heavy slump last year. In 2009, the tourism sector was heavily hit by the worldwide economic recession. The total number of outbound trips fell 4%, the number of outbound room nights declined 7% and the sector's outbound turnover dropped 9% as prices and rates tumbled, according to IPK figures. International tourism declined with a 4.2% fall to 880 million arrivals worldwide and a 5.7% drop in spending to $852 billion (€611 billion), World Tourism Organization (UNWTO) statistics show. But the world tourism industry has proven its resilience with an unexpectedly strong comeback last year. The global tourism sector grew about 5% in 2010, according to IPK's World Travel Monitor. International travel spending levels are expected to be reported at slightly faster by 7% to €781 billion while the much larger domestic travel market will also grow well by some 4%, the latest World Travel Monitor trends for January-September 2010 show. Africa is also expected to show good growth rates. The world economy will grow 4.2% in 2011 and 4.7% in 2012, according to Germany's respected IFO Institute and emerging countries are expected to contribute about two thirds of this world economic growth this year. This is great news for African hotel groups as this continent is at the forefront of emerging economies. Prior to the publication of The ITB Travel Trends Report 2010/2011, African Sun was already optimistic about 2011. We have a sound strategy in place, great people on board, realistic growth plans and a solid cash management system. All of which we believe sets us up well to maximize the potential this year, and the report, is promising.

More hotel guests in 2011 but rates still under pressure The world's hotels and accommodation industry will see a good recovery this year in volume terms but not quite return to growth yet, the recent World Travel Monitor results showed. The key trend is that people are travelling again but taking shorter trips. Hotel prices are rising again as demand returns strongly but trends are very divergent around the world, according hospitality research company STR Global. Room yields (revenue per available room) are rising in Asia and improving in Europe after a sharp drop over the last two years. In Africa we are seeing an increased demand for business hotel rooms, but this is also being met with an increase in the number of properties being built to service the demand. While in many African cities, hotel guests are still paying premium rates for their rooms, the ability to charge 'top dollar' will come under pressure soon. Take for example the South African hotel industry. In both Johannesburg and Cape Town, many luxury properties have sat with occupancies below 15% giving guests an unprecedented opportunity to negotiate on price. As a business, hotel owners need to understand the balance between standards and operating costs. How to maintain one and manage the other so that the pressure on rates can be mitigated by the satisfaction created through a truly exception guest experience. At African Sun, great service coupled with great properties is key to our success and our 'how may I serve you' mantra the cornerstone of everything we do

FORWARDED FROM US EMBASSY PUBLIC AFFAIRS

U.S. Ambassador Charles A. Ray and Fred Mutanda, Chairman of the American Business Association of Zimbabwe (ABAZ), today announced the winners of the first annual "Investing in Zimbabwe's Future" Corporate Social Responsibility (CSR) Awards: Econet and African Sun Zimbabwe Limited.

The "Investing in Zimbabwe's Future" Corporate Social Responsibility Awards are being launched for the first time this year by the U.S. Embassy and the American Business Association of Zimbabwe (ABAZ). The awards will be given at the ABAZ Just Business Forum closing reception at the Celebration Centre September 29.

Intended to be an annual recognition of outstanding displays of corporate social responsibility, the Investing in Zimbabwe's Future award winners are selected by a group of ABAZ board members and U.S. Embassy officials. Criteria for selection includes demonstrated commitment, including leadership and resources, to improving the lives of the future generation of Zimbabwe and concrete efforts to open education and job opportunities for young Zimbabweans.

Econet and African Sun Zimbabwe Limited continued investing in Zimbabwe's youth by supporting young, gifted but economically disadvantaged Zimbabweans as they work to build their educational and professional capacity. This support, for example, enabled nine disadvantaged Zimbabwean students to travel to the United States for tertiary education.

The nine students were among the 23 students who were awarded scholarships by American colleges and universities to pursue degree programs after undergoing the United States Student Achievers Program (USAP) in 2009-2010. Their scholarships in the U.S. cover full board and tuition for four-year degree programs.

Leading telecommunications service provider Econet Wireless Ltd donated US$20,000 to six USAP students on their way to the U.S. to begin studies this September. The funding covered various urgent needs including university fees shortfalls and personal expenses for Hazel Zengeni – MIT; Rudo Mudzi – Mt. Holyoke College; Tracy Lukwani – Mt. Holyoke College; Desmond Rgwaringesu – Reed College; Elvis Rambanapasi – Quinnipiac College; and Tinashe Mubvuma – Swarthmore College. All six students are previous beneficiaries of the Joshua Mqabuko Nkomo Scholarship fund, a Pan-African scholarship fund to which Econet is the main benefactor.

Leading hotel and leisure group African Sun Limited donated U.S.$7,500 worth of airline tickets for three USAP students to travel to the U.S. The students are Tendai Mudyiwa – Kalamazoo College; Norman Chamusa -- College of Wooster; and Chido Matara -- Berea College.

Ambassador Ray encouraged other corporate interests similarly to contribute to building a better future for Zimbabwe's young people. "It is our hope that through more public-private partnerships like these, Zimbabwe will build a much better future where young people have many education and employment opportunities to choose from. This will take hard work and the private sector must be fully engaged. Through these CSR awards, we are very proud to recognize the dedication of certain companies to create a better future for all the people of Zimbabwe, and especially for young people."

The American Business Association of Zimbabwe (ABAZ) is the collective voice of U.S. business and investment in Zimbabwe. It serves as both a forum and representative body for U.S. business and Zimbabwean/American business interests to encourage a better understanding of the role of business in a competitive market system. The 2010 Just Business Forum seeks to make a significant contribution to debate on economic policy in Zimbabwe and the development business-friendly economic policies contributing to economic recovery and growth.

Comments and queries should be addressed to Sharon Hudson-Dean, Public Affairs Officer. E-mail: hararepas@state.gov Tel. +263 4 758800-1, Fax: 758802.

More with Less…

As we speak this month, I reflect on our environment, on what is taking place around us, and how it impacts our business. The key message is that the global economic forum has changed forever. It has become evident that prudency in all we do has come to the fore and is now a key business imperative more than it has ever been.

In order to preserve value for the business, for ourselves and attain sustainable growth, we will have to become mavericks at what we do and in all areas of operation while maintaining our values. Although I use the term maverick, very much tongue in cheek, I must emphasize that we must realize that we will have to do more with less.

Income streams from our existing and potential clients are largely rationalized thereby resulting in a ripple effect to the service industry. This means that our guests are more likely to be price sensitive and at the same time demanding better service standards and delivery from us. This expectation has a direct bearing on our staffing and the requisite levels and caliber of personnel handling our guests.

I recently presented a paper at the Institute of People Management of Zimbabwe (IPMZ) conference held in Victoria Falls and my talk touched on these key issues of what is expected of our people to enable them to deliver to internationally acceptable standards, yet at the same time managing head count as any efficient business should. The issue of multi-skilling with the right candidates is a real one which should be the backbone of any organization. In order to effectively deliver at all times, we need to identify talent, nurture it, and this will eventually ensure our competitiveness not only on the African platform but on a global scale as well.

This forces me to revisit our staff skills competitiveness globally. What comes to mind is that we have pockets of excellence, but in order to change the perception of current skills level for Africa, our current training and development model has to be revamped in order to fit and meet modern challenges. The framework of the past will not work, therefore I leave you with this food for thought, what part can you play in your organization to ensure that your team remains relevant for today's world and beyond?

Skills crisis or private sector opportunity?

Employing and retaining a skilled workforce is a commonly acknowledged, cross-industry challenge.  The number of potential employees with the right skill set to effectively perform their function seems to be at an all time low and while this storm may be something most sectors can weather, for the hospitality industry it is particularly problematic.

Our people are the cornerstone of our business.  Even the most luxuriously appointed  hotel will never deliver the experience guests expect if the people manning it are unprofessional or unable to adequately perform their function.   The way our staff comport themselves is as integral to the positive perception of a property as the quality of the physical product itself.   A problem, yes, but an opportunity too.

At African Sun we have taken the destiny of our ‘family’ into our own hands and have leveraged our partnership with HTA to foster excellent service standards and staff training from within.  We believe that there is a real opportunity here for other private sector players to employ the same training model, fund staff development from within and ensure that world class standards are at the heartbeat of their organisations, whatever their industry.

In this way, we can work together to not only close the knowledge gap, but knock the impending ‘skills war’ on its head too.

    

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