Tour Operators in Zambia’s tourist capital, Livingstone have disclosed that they are starting to lay off workers as cost of running business has become unbearable following ZESCO’s decision to increase commercial tariffs.
A number of Tour Operators talked to by Zambian Eye in Livingstone disclosed that they have been hit hard by ZESCO’s decision to increase commercial tariffs by 300 percent.
Aalexander Mutali
Worse of the increment has been effected at the period when the business is low as you know January, February is very bad,” Livingstone Tourism Association Chairman Alexander Mutali told Zambian Eye in an exclusive interview on Tuesday, January 26, 2015.
Mutali who is also Tourism Council of Zambia Chairman and runs a lodge described the situation as dice. He said many Lodges are going for days without a single client and wondered how they will survive with the increment.
He explained that the increment means that somebody who was paying K17, 000 per month will now pay K65, 000.
ZESCO has given commercial clients nine days ultimatum which ended January 19, 2016 to settle their bills.
Mutali has since appealed to President Edgar Lungu to extend the increment to commercial electricity users in order to save jobs. He disclosed that he has already communicated to ZESCO and Energy Regulation Board (ERB) to consider extending payment period while negotiations are going on the 300 percent increment.
He said ERB had since responded promising that a comprehensive statement will be issued as admitted that a number of sectors had been affected by the increment.
Mutali said the increment has affected a number of sectors including Agriculture which will see a further increment of food. He said the effect will now result into Tour Operators laying off workers and increase the prices a situation that will scare away Tourists.
“This situation will serious affect the tourism sector. Tourism is one of the pillars of our economy and there is need to nature it,” he said.
Meanwhile a check by Zambian Eye found that some lodge owners are now closing businesses and turning the buildings to houses.