The Civil Aviation Authority of Zimbabwe (CAAZ) has applied for special economic zone status for all its airports in order to attract investments around the facilities and to grow the non-aeronautical revenue.
CAAZ which operates airports across the country says it has submitted a proposal to the responsible authorities for all the airports to be designated special economic zones in order to lure investments and to develop the airports.
World over areas around airports have massive investments in the form of hotels, conference centres, golf courses, retail outlets and office buildings.
CAAZ Director Airports Mr Tawanda Gusha said the authority is confident the special economic zone status will boost investments around airports and assist the entity grow the non-aeronautical revenue.
“we have applied for our airports to be designated special economic zone. The development will ensure that would be investors get incentives which will make the investments more attractive. We want the areas surrounding the airports to develop so that in that vein we grow non-aeronautical revenue,” said Mr Gusha.
CAAZ is currently intensifying revenue growth and cost reduction measures with a view to achieving operating break-even by the end of the current financial year.
Non-aeronautical revenues continue to be a vital component of an airport’s bottom line.
It is estimated that non-aeronautical revenues constitute around 40 percent of global airport revenues.
Most airports generate their revenue from two main sources that is aeronautical revenue which is mainly landing charges and non-aeronautical revenue which is income from gift shops rentals, parking fees, hotels and office building rentals.