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Leonard Ncube, Victoria Falls Reporter
INTERNATIONAL finance institutions are keen to assist Zimbabwe towards the recovery of the tourism sector from the adverse effects of Covid-19, as Government ropes in local banks to facilitate access to cushion funding.

Enviroment, Climate, Tourism and Hospitality Industry Minister Nqobizitha Mangaliso Ndlovu said this as he assured tourism industry players that they would access the proposed packages as Government.

Government has pledged a bank guarantee facility worth $500 million to assist the tourism sector to access working capital loans from banks so as to boost the industry operations on the wake of Covid-19 impact.

The stimulus package comprises a raft of incentives such as a Tourism Revolving Fund with an initial injection of a seed capital of $20 million, waiver of Value Added Tax on domestic tourism, deferment of liquidation of foreign currency paid by international clients, support for Zimbabwe Tourism Authority and payment of money owed to tourism operators by various Government institutions.

The tourism industry has been one of the hardest hit by the Covid-19 pandemic resulting in a majority of operators and hoteliers closing indefinitely because of lack of business owing to cancellation of bookings and postponement of travel by international tourists.

Lack of tourists means no revenue for the industry hence the future looks gloomy without increased financial support, industry experts say. Government has committed itself to assist in reviving the industry, starting with domestic tourism, which has been underrated over the years.

“This is one sector where international financial institutions are even more keen to contribute more because they know they are almost guaranteed of foreign currency repayments.

“Usually there are challenges accessing loans as most lenders will be hesitant because of the apparent high default risk.

“This is why Government has come in to say whatever loan you have advanced for the purposes of tourism sector recovery, the Government will guarantee against default risk,” said Minister Ndlovu.

He told tourism stakeholders here last week that the stimulus package should go a long way in addressing the tourism industry’s capital requirements.

Minister Ndlovu also said discussions were underway with some of the finance houses to chip in with capital expenditure, which will be directed mainly at refurbishing institutions and tourism development. He said the Minister of Finance and Economic Development is already working on financing modalities, which will be announced soon.

“We don’t want a facility that will be prohibitive for the sector to recover and I want to believe they will soon be announcing the guidelines,” he said, adding that the tourism industry had submitted a list of operators owed especially by Government departments for services rendered.

“I received a full list of every player who is owed by Government and the amounts that are owed. This has been forwarded to the Ministry of Finance but a policy position was taken that these will be settled as a matter of urgency. Again, trying to come up with ways of how it can be salvaged.”

Minister Ndlovu said Government was aware of the travel cancellations and postponements of bookings and yet the industry was expected to honour requirements to Reserve Bank of Zimbabwe.

On this he said the industry will be allowed to keep the funds while it continues to convince clients not to cancel but postpone their travel. Minister Ndlovu said he will also lobby the Ministry of Finance to review the $20 million revolving fund.

“While we were given $20 million, I have booked an appointment with the Minister of Finance (Professor Mthuli Ncube) because there have been changes. We want to lobby for a little bit more,” he said.

Due to the pandemic, 2020 is projected to be a very difficult year for the tourism business as most countries have gone into lockdown while numerous business events have either been cancelled or postponed with flights having been suspended for a long period.