Multi-licensing of tourism sector cause for concern

Victoria Falls Reporter
The Government is looking into the multi-licensing of the tourism sector by different Government departments as it is affecting pricing of products, Ministry of Tourism and Hospitality Permanent Secretary Florence Nhekairo said.  “Government is seized with the issue of multi-licensing at the highest level because it is the most driver of the cost of products in the sector. Multi-licensing is affecting pricing,” she said in an interview on the sidelines of the just ended Hospitality Association of Zimbabwe (HAZ) congress in

Victoria Falls.
Nhekairo said there was an on-going exercise by the Government in relation to the licensing models practised by Government departments.

Players in the industry said multiplicity of licences by different government departments was hindering new entrants and already established players in the tourism industry.

Immediate past president of HAZ Tich Hwingwiri said there were just too many licences that were demanded by different Government departments.

“We have a situation where we have these many licences some of which we feel are duplicating each other. This is now affecting entrance of new players in the tourism industry and is also affecting operations of old players,” he said.

There are different licences which the industry is paying which include Zimbabwe Tourism Authority (ZTA) tourism levy, hotel licence, radio and TV licence per set, road transport operator’s licence, Zimbabwe Revenue Authority (Zimra), Zimbabwe Music Rights Association and Zimbabwe Broadcasting Authority levy among others.

On top of these licences, hotels are expected to pay separately for the restaurants, conference rooms and shops on their premises to local authorities.

“If you have say 100 rooms at your establishment you are obliged to pay $10,000 to ZBC and they don’t consider room occupancy. We are, however, happy to note that we have been consulting the Government on this and we believe something positive will come up,” said Hwingwiri.

Meanwhile, Hwingwiri said the tourism sector was poised for growth in 2014.

“We are optimistic that we are going to see a 10 percent growth in the sector,” he said.

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