Impact Analysis of the COVID-19 Pandemic on the Informal ...

1 African Journal of Hospitality, Tourism and Leisure. ISSN: 2223-814X February 2021, Vol 10, No 1, pp. 165-178 165 AJHTL Open Access - Online @ Impact Analysis of the COVID-19 Pandemic on the Informal Sector Business Tourism Economy in Zimbabwe Logistic Makoni* School of Tourism and Hospitality, College of Business and Economics, University of Johannesburg, Johannesburg, South Africa, Email, Tembi M. Tichaawa School of Tourism and Hospitality, College of Business and Economics, University of Johannesburg, Johannesburg, South Africa, Email, *Corresponding Author How to cite this article: Makoni, L & Tichaawa, T. M. (2021). Impact Analysis of the COVID-19 Pandemic on the Informal Sector Business Tourism Economy in Zimbabwe. African Journal of Hospitality, Tourism and Leisure, 10(1):165-178.

2 DOI: Abstract This study sought to conduct a socio-economic Impact assessment of the COVID-19 Pandemic on Informal business tourism in Zimbabwe. The specific objective of this study was to identify the extent to which the Informal business tourism economy in Zimbabwe has been affected by the COVID-19 Pandemic and to prescribe guidelines and frameworks of workable actions to address the problems. As such, the study adopted a desktop research approach in which a thematic Analysis of existing tourism development literature on business tourism in developing economies served as the basis for the arguments presented. Key issues highlighted in the paper include impacts on the supply of basic commodities and household income of the traders and business operations of the related businesses in the formal sector, traders survival strategies during the course of the national lockdown, and implications on the way forward.

3 Furthermore, the study offers conclusions and implications drawn from the themes formulated from these key issues. The study also provides insights on the vulnerability of the Informal business tourism sector to unforeseen occurrences, and how the affected stakeholder can recover from such a blow. Keywords: Socio-economic Impact , COVID-19 , Coronavirus, Informal Business Tourism, Zimbabwe Introduction The Informal business economic sector in developing countries represents a strong economic multiplier effect (Tichaawa, 2017). Through its content and its role, the sector represents, in the context of contemporary civilization, a distinct area of economic activity and a segment of essential importance in the economic and social life of the majority of countries, especially in sub-Saharan Africa (Benjamin & Mbaye, 2014; Grant, 2015; Rogerson, 2005, 2018). Benjamin and Mbaye (2014) advance that Informal business tourism is a vital aspect of the Informal economy across the region.

4 Since the majority of people residing in urban areas work in the Informal sector, and the sector constitutes over 80% of employment (Grant, 2015), Rogerson (2018) contests that informality holds a great place of importance as a dimension of all economic sectors of the sub-Saharan African region, including the region s expanding tourism sector. Many studies (see Bandyopadbyay, 2020; Bhattacharjee & Sarkar, 2020; Dey, 2020; Dobler, 2016; Eldrede & Kadirov, 2020; Ghosh & Chaudbury, 2020; Jha & Pankay, 2020; Nshimbi, 2020; Palat, 2020; Peberdy, 2017; Peberdy, Crush, Tevera, Campbell, Zindela, African Journal of Hospitality, Tourism and Leisure, Volume X (X) - (2020) ISSN: 2223-814X Copyright: 2020 AJHTL /Author(s) | Open Access Online @ 166 Raimundo, Green, Chikanda & Tawodzera, 2015; Rogerson, 2018; Samaddar, 2020; Tiwari, 2020) suggest that informality constitutes a major portion of the developing countries socio-economy.

5 A number of scholars contributing to such knowledge (Dobler, 2016; Masango & Haraldson, 2010; Peberdy, 2017; Peberdy et al., 2015; Tichaawa, 2017; United Nations Conference on Trade and Development [UNCTAD], 2019) argue that over 50% of the informality in developing countries can be seen through Informal business tourism which, according to Rogerson (2018), largely manifests in both domestic and international (cross-border) travel. Unlike any other country in the African region, Zimbabwe boasts over 70% of Informal business tourism (International Monetary Fund, 2018) and this trend has continued to spiral since the beginning of the country s economic and political dilemmas in the early 2000s. Given the circumstance around the travelling nature of Informal business tourism (Eldrede & Kadirov, 2020; Nshimbi, 2018, 2020; Rogerson, 2005, 2006; Rogerson & Saarinen, 2018), and the ultimate reliance of the majority of the Zimbabwean population on the sector (Masiyiwa, 2020; Nyathi, 2020; Southern Africa Migration Programme Report, 2017), the unforeseen circumstance of the COVID-19 Pandemic , and the subsequent halt in any kind of tourism-related movement (United National World Tourism Organisation [UNWTO] 2020), becomes a key area for discussion.

6 In light of the Pandemic , this study sought to conduct an Impact Analysis of COVID-19 on the Informal Business Economy in sub-Saharan Africa (SSA), focusing on Zimbabwe as the case study area. The focus of this study, therefore, is on the Informal business tourism sector, with the main objective being to analyse the extent of the socioeconomic impacts of the COVID-19 Pandemic on the sector. In addition, the study sought to prescribe policy guidelines and frameworks of workable actions to address the Impact of the COVID-19 Pandemic on the sector in Zimbabwe and the sub-Saharan African region as a whole. Zimbabwe is a perfect case study for the subject under investigation given its background and the socio-economic circumstances that the country has undergone for over two decades prior to the outbreak of the Pandemic , coupled with the country s significant reliance on the Informal business tourism economic sector for its survival (International Monetary Fund [IMF], 2018, 2020).

7 Also, perhaps needless to say, given that the sector is largely characterised by travelling by both the traders and the buyers, the current global experience of the COVID-19 Pandemic brings about a greater threat to the socio-economic wellbeing of many Zimbabweans, which renders a critical need for Analysis and the prescribing of solutions in that regard. Literature review Informal business tourism: a conceptual framework Informal business tourism is considered travel within and/or between neighbouring countries conducted by vulnerable, small, unregistered traders (UNCTAD, 2019). The trade involves the movement of products between cities, from rural areas into cities, and also between neighbouring countries, and the informality refers to the status of the traders (unregistered) not necessarily to the trade itself (UNCTAD, 2019). Informal business tourism represents a type of business tourism which is unique to, and typical of, developing communities (Masango & Haraldson, 2010; Nunez, 2009; Peberdy, 2017).

8 Based on literature provided by many scholars on Informal business tourism (see Eldrede & Kadirov, 2020; Muzvidziwa, 1998; Rogerson, 2016, 2018; Rogerson & Saarinen, 2018; Samaddar, 2020; Tichaawa, 2017), the concept is part of the business tourism concept, and it includes Informal cross border tourism (ICBT) and Informal domestic tourism. This is illustrated in table 1 below. As indicated by Table 1, the Informal business tourism economy, which is the focus of this paper, constitutes ICBT on the African Journal of Hospitality, Tourism and Leisure, Volume X (X) - (2020) ISSN: 2223-814X Copyright: 2020 AJHTL /Author(s) | Open Access Online @ 167 one hand (Eldrede & Kadirov, 2020) and Informal domestic tourism on the other hand (Rogerson, 2016, 2018). Table 1: Clusters of Business Tourism Formal business tourism economy Informal business tourism economy Formal international business tourism ICBT Formal domestic business tourism Informal domestic tourism Source: Timothy and Teye (2005) While ICBT is viewed as the Informal commercial exchange of goods and services by Informal traders operating between borders (Eldrede & Kadirov, 2020), Informal domestic business tourism is the similar transactions conducted by Informal traders within the borders of their countries through, mostly, street vending and Informal retail outlets (Rogerson, 2016).

9 As such, not only has Informal business tourism become a motivation for the poor in the developing communities to become tourists, but it has also allowed them to supplement households sources of income in the wake of economic hardships and high volumes of unemployment (Peberdy & Crush, 1998; Rogerson, 2018; UNCTAD, 2019). Other researchers (Manjokoto & Ranga, 2017; Muzvidziwa, 1998; Peberdy & Crush, 1998, 2001; Peberdy & Rogerson, 2003; Rogerson, 2016; Rogerson & Saarinen, 2018) lament that the majority of people in the sub-Saharan Africa region have resorted to informality for survival in the wake of industry shutdown and formal economic downswing and that little is being done by the affected governments towards recognising and advancing informality in economic plans and strategies (Rogerson, 2015). In the wake of the COVID-19 Pandemic , it becomes critical to analyse how people in this sector have been affected, given that they were already vulnerable before the Pandemic .

10 Hence the need for this paper. Although there are limited statistics which show the total contributions of Informal sector business tourism in the overall sub-Saharan Africa economy, Fundira (2018) estimates that the sector contributes between 50% and 60% of intra-regional trade. In the Southern African Development Community (SADC), Informal sector business tourism accounts for an estimated US$ billion annually, which is approximately 40% of intra-trade of the region. Based on the available literature on Informal business tourism, it is clear that the sector serves many purposes: it represents a significant feature of regional trade flows (Afrika & Ajumbo, 2012; Ashley & Roe, 2002; Mitchell & Ashley, 2010; Peberdy, 2007; Rogerson, 2006, 2018; UNCTAD, 2019), it serves as a source of employment and supplements households income (Ashley & Roe, 2002; Mitchell & Ashley, 2010; Rogerson, 2006, 2012, 2018), it assists in eliminating poverty and it also contributes massively towards food security (Fundira, 2018; Rogerson, 2018; UNCTAD, 2019).