Scrap tourism levy, says Mzembi

Adelaide Moyo Victoria Falls Bureau—
TOURISM and Hospitality Industry Minister Walter Mzembi says Treasury should consider scrapping off the 15 percent tourism levy while the industry should come up with competitive rates in order to attract tourists. The industry is one of the key sectors of the economy which is contributing an average of $1 billion annually despite the negative economic climate.

In a paper presented on his behalf by his deputy, Annastancia Ndlovu at the ongoing 2016 pre-budget seminar for Parliamentarians and Ministers here, Mzembi said the prevailing cost structure has made Zimbabwe an expensive destination. “The industry needs to review its pricing structure downwards as our pricing isn’t competitive because we’re relatively an expensive destination compared to other destinations in the region.

“Regarding the 15 percent VAT on accommodation for foreign tourists that was effected this year in January, the position of the ministry is that this is negatively affecting the sector as it reduces tourist arrivals and receipts,” said Mzembi. He said the levy makes Zimbabwe an expensive tourists destination hence tourists now preferred to stay in Livingstone, Zambia while visiting during day to see the Victoria Falls.

“We call on the Finance Ministry to scrap this levy so that Zimbabwean rates are competitive in the region,” said Minister Mzembi. He said there was also an urgent need to deploy tourism attaches to key tourist source markets such as China to help drive volumes and value to the tourism sector.

“Our ambassadors and Charge de Affairs can assist us in marketing the country as a favourable destination and if we’re serious about growing the national cake through the tourism sector, we need to deploy tourism attaches to key source markets. It’s also important that we’re present at travel and tourism expos and indabas,” he said.

“Through the Regional Tourism Organisation for Southern Africa (Retosa), we’re advertising our destinations as a collective package owing to the fact that tourists who come from long haul destinations don’t want to travel for just one destination due to the long distances and long flights,” he said.

According to the Zimbabwe Tourism Authority (ZTA), the sector has recorded a seven percent growth in international arrivals to 930,000 by June this year compared to the same period last year. Minister Mzembi has also called for the development of new tourism facilities to ensure increase in tourism arrivals.

“The country needs new tourism infrastructure including accommodation, conference and restaurant facilities, shopping malls and theme parks not only to cater for the anticipated increase in tourism arrivals but also to increase the tourists’ length of stay in the country. To this end a special purpose vehicle, Mosi-oa-Tunya Development Company was incorporated to drive tourism infrastructure investment initially in Victoria Falls under a special economic zone and later throughout the country,” said the minister.

In his keynote address Vice-President Emmerson Mnangagwa said the theme for the seminar — “Growing the national cake for socio-economic development and transformation” was spot on as it reflects the country’s priorities as aptly captured in the country’s economic blueprint, Zim-Asset.

The pre-budget seminar ends today.