The British government yesterday warned its citizens intending to travel to Zimbabwe on possible difficulties they are likely to face when visiting the country as a result of current cash shortages.
The warning comes as the tourism sector has already rung alarm bells on the toll the cash squeeze is already having on the sector.
Banknote shortages have become a feature in the past two months, resulting in long bank queues which have been fuelled by the Reserve Bank of Zimbabwe’s announcement of the impending introduction of local “bond notes,” which many Zimbabweans fear signal the return of a hated local currency.
Zimbabwe ditched its hyperinflation-ravaged currency in 2009 and adopted the use of multiple foreign currencies, chiefly the United States dollar and South Africa’s rand.
In an updated travel advisory, the UK government urged its citizens “to have enough US dollar notes” when traveling to Zimbabwe.
“Almost all transactions are conducted in US dollars. Zimbabwe is currently experiencing a shortage of cash. It is not currently possible to make cash withdrawals using an international bank card,” read the advisory.
While crime levels were described as “moderate,” the economy was said to be “increasingly fragile”.
“Credit and debit cards are increasing in circulation but you should check in advance if a restaurant or hotel will accept them,” the UK advised.
The UK is one of Zimbabwe’s major tourist source markets and the advisory will likely affect arrivals.
Zimbabwe Council for Tourism chief executive Paul Matamisa said tourism, like any other sector of the economy was, already being affected by the shortages.
“Right now people can’t access their cash. If people cannot access money then it affects tourism in that they cannot even use the money to go for holidays,” he said.
“They (foreign tourists) were not accessing their money and they can’t use their cards.”
Matamisa however said some banks had assured the industry that foreign visitors would still be able to use their cards to access money.
Even before the shortages, most resorts in the country were criticised for not promoting the use of plastic money.- The Source
Related stories:
IMF to assess impact of introducing bond notes in Zimbabwe
Reserve Bank of Zimbabwe to force businesses to bank cash
Ecocash to be hit by cash crisis
UK says bond notes could be damaging to confidence in Zimbabwe economy
Multi-currency system is dead says RBZ
Zimbabwean company says “bond notes” are adding to uncertainty
Chinamasa says Zimbabwe will not be a “fishing pond” for US dollars
Zimbabwe hires German firm to print bond notes
Zimbabwe’s bumpy, costly road to a cashless future
The government’s hidden hand in Zimbabwe’s cash crisis
Chinotimba says give people bond coins if they do not like bond notes
Chinamasa tells Parliament that bond notes are above board
Zimbabwe says it needs bond notes because “we are feeding looters”
Zimbabwe scraps plans to convert export earnings into rand, euro
Tsvangirai calls emergency national executive meeting Thursday to decide way forward on bond notes
It’s a stimulus package- Mangudya says
Tsvangirai to convene his cabinet tomorrow to discuss proposed bond notes
Bond notes -a legal perspective
Zimbabwe stems illicit outflows
Cash shortages – the real causes and the wrong diagnosis
New bond notes-key questions answered
Mangudya full statement on the introduction of bond notes
Highlights of RBZ intervention on cash shortages
MDC says Mugabe is bringing back Zimbabwe dollar through the back door
Zimbabwe to introduce bond notes as cash shortages bite
(83 VIEWS)
