Zimbabwe’s tourism sector is poised for renewed growth following the Government’s decision to cut and, in some cases, abolish excessive levies, licences, and permit fees that had long constrained operators. The move, described by industry players as a “game changer,” is expected to restore the competitiveness of Destination Zimbabwe and inject much-needed confidence into the sector.
Earlier this year, President Mnangagwa directed authorities to address the high cost of doing business caused by fragmented levies, licences, fees, and permits. A comprehensive review revealed that companies were burdened by multiple, overlapping charges across 12 critical sectors: Health, Agriculture, Retail, Tourism, Transport, Energy, Manufacturing, Broadcasting, Telecommunications, Liquor, Construction, and Financial Services.
In tourism, the review covered a wide range of licensing areas, including Accommodation, Hospitality and Catering, Tour Guides and Operators, Boating Services, and Vehicle Rental Services sub-sectors previously constrained by a complex regulatory environment. Some charges were reduced by between 25% and 50%, while others were scrapped altogether.
For years, stakeholders had warned that the multiplicity of charges was stifling rather than supporting growth. Yet, because these charges were legally binding, operators had no choice but to comply. This regulatory stranglehold eroded profits, stifled expansion, and made it difficult for businesses to reinvest.
Home to iconic attractions such as Victoria Falls, Hwange National Park, the Eastern Highlands, and the Great Zimbabwe Monuments along with a rich diversity of wildlife and bird species. Zimbabwe welcomes millions of visitors who rely on services and facilities in the tourism and hospitality industry. The country has set itself an ambitious US$5 billion tourism industry target by 2030. Achieving this, according to the Tourism Business Council of Zimbabwe (TBCZ), will require sustained reforms and consistent implementation.
The TBCZ, the umbrella body representing private-sector players, welcomed the development. In a statement delivered on behalf of TBCZ president Clive Chinwada by Mr. Paul Matamisa, the council hailed the reforms as timely.
“This is a positive development, and the tourism industry applauds Government on this strategic move which should help the industry regain some of its competitive leverage. The various levies and permits had become a huge albatross on operators, making Zimbabwe uncompetitive compared to our regional peers,” said Chinwada.
While applauding the reforms, the sector is pushing for urgent legislative changes to ensure the pronouncements translate into tangible relief for businesses. Operators are also appealing for greater investment in enabling infrastructure such as roads, airports, electricity, and digital connectivity.
Industry leaders remain optimistic that, with these reforms, Zimbabwe can surpass its current 12% contribution to Gross Domestic Product (GDP), boost foreign currency receipts beyond the present US$1.2 billion annually, and expand employment from the current 30,000-plus jobs.
To strengthen monitoring, the TBCZ has urged the Government to establish a Tourism Satellite Account (TSA) a globally recognised tool for capturing the true economic impact of tourism.
“To effectively and comprehensively capture the contribution of tourism to the economy, the private sector implores the Government to invest in the Tourism Satellite Account. This system will enable both Government and the private sector to measure, correctly and accurately, the size of the tourism sector and help deepen investment in its various constituents. We bemoan the current understatement of tourism’s contribution to the Zimbabwean economy as reflected in official statistics,” TBCZ noted.
With the heavy burden of levies lifted, Zimbabwe’s tourism industry now has fresh momentum. The challenge lies in the swift implementation of reforms, improved infrastructure, and sustained investment to firmly position Zimbabwe as Africa’s destination of choice.
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