Establishing a small tourism services business

“The Bill further seeks to strengthen regulation of the tourism sector by introducing new provisions for shutting down unregistered facilities and ensuring mandatory publication of all registered tourism facilities, as well as mandatory registration of all online booking platforms. “The Bill introduces civil penalties for failure to pay, collect, or remit any levies and fees, and also proposes a mandatory obligation for operators in the industry to submit to the Zimbabwe Tourism Authority statistics and information utilised for tourism planning and the development of marketing strategies,” said Dr Muswere.

STARTING a small tourism services business in Zimbabwe offers a promising opportunity to tap into the country’s rich cultural heritage and natural beauty.

However, navigating the regulatory landscape and managing startup costs require careful planning.

Business registration and licensing

The first step involves registering your company with the Registrar of Companies, under the Companies and Other Business Entities Act, which typically costs between US$100 and US$200.

Subsequently, you must register for taxation with the Zimbabwe Revenue Authority (Zimra) to obtain a business partner number (BPN) and, if applicable,
value-added tax (VAT) registration.

This process is essential for compliance with tax laws.

There is no direct fee for tax registration.

For tourism-specific operations, obtaining a tourism licence from the Zimbabwe Tourism Authority (ZTA) is mandatory.

ZTA’s e-registration system requires submission of several documents, including a bank statement, public liability insurance with a minimum coverage of US$5 000, promotional materials and company registration documents.

Operational requirements

If your services involve transportation, such as guided tours, additional permits from the Ministry of Transport and Infrastructural Development are necessary.

This includes vehicle registration documents and tour guide licences.

Ensuring compliance with these requirements is crucial for legal operation and customer trust.

Startup costs

The initial capital investment for a small tourism services business in Zimbabwe can vary widely based on the scale and scope of services offered.

Key expenses include:

Office space — Renting a modest office in a central location may cost between US$200 and US$500 per month.
Office equipment and supplies — Budgeting for computers, phones, furniture and other essentials can range from US$1 000 to US$2 000.
Marketing and branding — Creating a professional website and promotional materials may require an investment of US$500 to US$1 000.
Transportation — If offering transport services, acquiring vehicles is a significant expense. Purchasing second-hand vehicles can be more cost-effective, with prices varying based on condition and source.
Staffing — Hiring qualified personnel, such as tour guides and administrative staff, is essential.

Salaries can range from US$500 to US$1 500 per month per employee, depending on experience and role.

While establishing a tourism services business in Zimbabwe involves navigating regulatory requirements and managing various startup costs, the country’s growing tourism sector presents ample opportunities for entrepreneurs.