Tourism Sector Welcomes Tax Cuts but Warns on Infrastructure Gaps

By Elishamai A Ziumbwa

Zimbabwe’s tourism industry has welcomed a government decision to slash levies, taxes and licence fees by up to half saying the move could boost the sector’s competitiveness.

The cuts, approved by Cabinet on 26 August, reduce charges by between 25% and 50%, with some fees scrapped entirely.

Paul Matamisa CEO of the Tourism Business Council of Zimbabwe (TBCZ) speaking on behalf of the council’s president Clive Chinwada described the decision as “a positive development” for the sector.

“These levies and permits have long weighed down the industry, making Destination Zimbabwe less competitive. We now await the full implementation in the shortest possible time.” he said

However, the TBCZ cautioned that the tax relief alone would not be enough to achieve the national goal of a US$5bn tourism economy by 2030.

The council called for urgent investment in infrastructure, citing poor roads, unreliable electricity and underdeveloped airports as major obstacles.

“Operators continue to rely on costly diesel generators due to power outages. We appeal for the rehabilitation of key routes such as Bulawayo–Victoria Falls and Harare–Kariba, as well as upgrades to airports in Kariba, Masvingo and the Eastern Highlands.” Chinwada

The TBCZ also urged the government to adopt a Tourism Satellite Account (TSA) to more accurately capture the sector’s true economic contribution saying official statistics currently understate its impact.

Chinwada acknowledged the government’s “consultative approach” to recent tourism policy, adding that with the right support, the industry could surpass the 2030 target.