The consortium had secured permission to develop a tourism resort on the area around Lake Chivero, a few kilometres west of the capital.
A dispute that sucked in different ministries and resettled farmers has led to its cancellation.
The then Ministry of Environment, Tourism and Natural Resources designated the disputed area as a tourism development zone.
But the Ministry of Lands and Rural Resettlement and the Zvimba Rural District Council moved in and claimed ownership of the land.
Safari Tour Operators’ Association of Zimbabwe president Mr Emmanuel Fundira, who was the project co-ordinator, said investors had been frustrated by the dispute.
“We did not manage to resolve the impasse, so the project is now completely off the cards,” he said.
“We have failed to co-ordinate it properly and part of the land that was earmarked for the project has been taken over by the Ministry of Transport and Infrastructural Development. I understand they want to build a navigation training centre there.”
Mr Fundira expressed disappointment over Government’s failure to resolve the dispute that would have resulted in the creation of more than 500 direct jobs among other benefits.
He said incidences like these tended to scare away investors especially in a sector that has done well when other sectors were performing below par.
“It is just disappointing to have things like these happen. What is the point of inviting investors only for them to suffer a fate like this?” he asked.
The Hippo Creek project was to be rolled out in phases, with reports indicating that financing for the first stage was already at hand.
The project would have included accommodation facilities, water sports and an upmarket service centre.
Zimbabwe, which has suffered from low Foreign Direct Investment over the past decade, needs vast amounts of investment to regain ground lost during the economic downturn.
The tourism industry raked in US$800 million in 2010 and is set to contribute at least 15 percent to GDP by 2015.
According to the 2011 World Tourism Report, Zimbabwe is second after South Africa on the continent in terms of tourism performance. — New Ziana.
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