Tourism sector wants permit/licence fees cut

Leonard Ncube, Victoria Falls Reporter
PLAYERS in the tourism industry have appealed to the Government to slash permit and licence fees by 50 percent to facilitate the sector’s recovery from the Covid-19 losses.

Tourism is one of the hardest hit sectors as a result of international travel restrictions due to Covid-19. More than three-quarters of jobs are estimated to have been lost as hoteliers and operators closed operations owing to lack of business.

While doing their part to support domestic tourism, industry players say the level of licence and permit fees paid to various Government departments was a hinderance.

Speaking at a meeting organised by the Zimbabwe Tourism Authority (ZTA) to engage the industry to find common ground on how to develop domestic tourism, tour operators and hoteliers said they had extended discounts of up to 90 percent on their services and want the Government to do likewise.

The operators and hoteliers want licences paid to ZimParks, Civil Aviation Authority of Zimbabwe, Environmental Management Agency, Forestry Commission, local authorities and Ministry of Transport among others to be slashed and that these payments be spread across 12 months as opposed to upfront.

They argued that the prevailing market conditions were different as business was constrained hence the need to revise some of the activities including rates. The fees include licences and fees charged on activities done by tourists.

The industry players said they were compiling a list of requests to be presented to Environment, Climate, Tourism and Hospitality Industry Minister, Nqobizitha Mangaliso Ndlovu, through the Tourism Business Council of Zimbabwe (TBCZ).

“We believe the industry has done the best in making sure that it is safe to receive guests. The industry has reduced rates by between 10 and 90 percent of their normal charges in order to promote domestic tourism,” said TBCZ representative, Mrs Barbara Murasiranwa.

“However, the area that remains a thorn in the flesh are charges by our Government and quasi-Government institutions for various licences, permits, leases, rentals and fees.

“We are requesting for a 50 percent discount in all the fees and also a payment plan to be granted to all tourism players so that the burden could be spread over a year instead of being requested upfront.”

Mrs Murasiranwa said the drive to promote regional and domestic tourism will not be fully achieved as long as operators were struggling with high statutory fees.

The cost burden has a risk of driving small and indigenous companies into liquidation, she said.

ZTA regional manager, Ms Tsikadzashe Mberi, implored operators and hoteliers to relook their pricing models to accommodate domestic clients.

She also challenged players in the tourism sector to take ownership of the domestic tourism campaign.

The Government had to come up with a $500 million Tourism Support Fund in guarantees for tourism sector players to access working capital in the form of loans from banks.

A total of $20 million was meant to provide seed capital to kick-start a Tourism Revolving Fund while Value Added Tax (VAT) payable by tourists for accommodation and visitor services was waived.

The fund is part of an $18 billion Economic Recovery and Stimulus Package by the Government aimed at reinvigorating the economy following slowdown induced by Covid-19.

Provision of critical liquidity support to all productive sectors, protecting employment through preventing and minimising Covid-19 induced lay-offs had become paramount. An offensive towards drumming up support for domestic tourism through the ‘ZimBHO! campaign and #IzimYami #Vakatsha’ whose target is to raise awareness among locals about the vast tourism and leisure facilities the country is endowed with, is being rolled out.

The campaign seeks to encourage a culture of holidaying among locals to boost domestic tourism, which had been overlooked over the years as the industry players focused on international tourism. — @ncubeleon

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