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Minister Walter Mzembi

THE government is considering reducing or completely removing taxes in the tourism sector in a bid to make Zimbabwe a more competitive destination in the region and globally.

The local tourism sector has been struggling to cope with a 15 percent value-added tax (VAT) imposed on international tourists’ accommodation bills at the start of this year.

A recent study by the Zimbabwe Council of Tourism (ZCT) shows that tourism facilities in the country were 30 to 40 percent more expensive compared to some of its regional counterparts, a factor that was keeping visitors at bay. Tourism and Hospitality Industry Minister Walter Mzembi said the government’s consideration was in the interest of developing the country.

“The Ministry of Tourism and Hospitality Industry, together with other stakeholders have to tackle the following issues in order to increase our share of the ‘One Billion Tourist and Opportunities’ potential. One of the critical issues is reducing or removing taxes levied against tourism operators and also tourists, which in turn makes travelling expensive for a destination,” he said.

He added that the tourism sector should take advantage of a rise in expenditure by international tourists from traditional source markets.

“For instance, statistics from the United Nations World Tourism Organisation (UNWTO) show that the total number of trips abroad from China (for example) is estimated to have increased by 11 million to 109 million in 2014. China is the world’s largest outbound market since 2012 with a total expenditure of $129 billion in 2013,” he said.

Industry players contend that the 15 percent VAT charge could work against government’s goal of achieving a $5 billion tourism sector by 2020. The taxes have been blamed for the decline in the number of foreign tourists coming into the country of late. Minister Mzembi urged local players to ensure that they capture a significant stake of the domestic tourism market.

“Statistics reveal that foreign tourists to Zimbabwe are increasing at a slower rate compared to countries in the region hence we should focus on domestic market whose supply will grow exponentially,” said the Minister.

He also said there was need for Zimbabwe and its African counterparts to open up their skies at a broader level to promote tourism in the region through intra-Africa travel. He urged countries to speedily remove visa requirements and implement e-visas, or at least issue visas on arrival, following the success of the pilot project on a Uni-visa between Zimbabwe and Zambia. — BH24