Online Reporter
Nqobile Bhebhe, Zimpapers Business Hub
THE country’s tourism sector has entered a decisive regulatory and investment phase following the enactment of the Tourism Act, 2026, a landmark piece of legislation that establishes a dedicated Zimbabwe Tourism Fund and brings the rapidly growing short-term online accommodation market, also known as Airbnb, into the formal economy.
The new Act moves beyond basic administrative oversight by establishing a comprehensive institutional framework designed to mobilise capital for tourism infrastructure, product diversification, quality standards enforcement and broader economic inclusion.
At the core of this new framework is the Zimbabwe Tourism Fund.
Industry analysts note that if adequately capitalised, transparently managed and targeted at high-impact projects, the Fund could serve as a major catalyst for private investment and commercial partnerships.
However, several sector players emphasised to Zimpapers Business Hub that the ultimate test will be whether the mechanism can successfully convert tourism levies and public revenues into bankable projects, upgraded destination infrastructure, and a robust private sector investment pipeline.
The Act establishes the Fund with explicit mandates to develop and promote the hospitality industry, collect and disburse revenues in line with national tourism plans and finance critical infrastructure.
Funding streams will include Parliamentary appropriations, tourism levies, approved donations, loans and other accrued revenue.
Crucially, the legislation designates money in the Fund as “public funds” subject to the Public Finance Management Act.
This places the Fund directly within national public finance governance, raising the bar for transparency, strategic allocation, and account management.
Tourism sector operator Mr Alec Mutasa described the Fund as one of the most critical elements of the legislation, citing the industry’s historical deficit in patient capital.
“We have been calling for the fund formulation for years and its enactment is welcome.
“In my view, if the Fund is properly capitalised and governed, it can help unlock projects that individual operators cannot finance on their own.”
“The critical issue now is converting the legal framework into visible investment in destinations, access infrastructure and tourism products.”
Expectations are high that the Fund will enhance destination competitiveness by co-financing access roads, airport upgrades, national park amenities, conference facilities, and visitor centres.
“It could also provide catalytic seed capital to de-risk commercial ventures before crowding in private funding through Public-Private Partnerships (PPPs).”
Tourism development specialist Dr Nestai Kurapa noted that the legislation deliberately connects regulatory compliance with macroeconomic expansion.
“The strength of the new Act is that it connects regulation with development.
“A tourism law should not only determine who is licensed; it should help create the conditions for investment, quality products, sustainable destinations and wider participation by communities, women and young people.”
Because its resources constitute public funds, its administration will fall within the country’s public-finance governance framework.
The Fund’s financial year will run for 12 months ending on December 31, while money not immediately required may be invested in a manner approved by the Tourism Minister acting on the advice of the Finance Minister.
“This means the success of the Fund will ultimately be measured not simply by how much money it collects, but by how effectively those resources translate into tourism assets and economic activity,” noted Dr Kurapa.
Dr Kurapa added that investing in tourism infrastructure generates broad multiplier effects throughout national supply chains.
“A well-financed tourism sector can generate demand across a wide supply chain, including accommodation, transport, food production, construction, entertainment, handicrafts, conservation and professional services.
“This gives tourism infrastructure spending a potentially wider economic impact than the immediate construction of a hotel or attraction.”
Economist Ms Alice Chikonzi argued that the Fund must function as a leverage tool rather than a direct grant facility.
“The Fund should not be viewed simply as a source of grants to tourism operators.
“Its greater value would be in providing catalytic capital that helps projects reach financial close and attracts commercial lenders and private investors,” she told Zimpapers Business Hub.
“Government resources can potentially be used for project preparation, enabling infrastructure and carefully structured co-financing, with private capital then coming in at a much larger scale.
“The objective should be to multiply every dollar committed to the Fund through additional investment in the tourism economy.”
Ms Chikonzi stressed that ring-fencing revenue is vital for investor confidence.
“Ring-fencing is important because investors need certainty that money collected for tourism development will remain available for tourism purposes.
“This can be achieved through dedicated Fund accounts, clearly defined eligible investments, transparent allocation criteria and regular disclosure of collections and expenditure.”
“If the Fund has a predictable revenue base and demonstrates disciplined project selection, it can build a track record that makes it easier to attract development-finance institutions, banks and private investors into tourism projects.”
Alongside its financial provisions, the Act officially integrates short-term digital rentals, also known as Airbnb, into the formal tourism economy.
Property hosts listing on digital booking platforms must now register with the Zimbabwe Tourism Authority (ZTA) prior to operating.
“All hosts must register with the Authority, in the prescribed manner, before listing a property on an accommodation booking platform,” the Act explicitly mandates.
Under the regulations, booking platforms are required to verify host registration.
Operators must maintain full transaction records, submit quarterly reports to the ZTA, and meet health, safety, and local municipal zoning requirements.
Existing platforms and hosts have been granted a 90-day grace period from the Act’s commencement date to comply.
The measure addresses long-standing complaints regarding market distortions in major urban and resort centres where unregistered short-term rentals competed directly with tax-paying hotels and lodges.
Tourism practitioner Mrs Nyasha Kamba-Dube emphasised that implementation must balance regulatory compliance with business growth.
“Formalisation is important because it creates a common operating framework for accommodation providers and gives consumers greater confidence in the quality and safety of the services they are buying.”
“The objective should be to bring operators into the formal economy without creating compliance costs that prevent legitimate small businesses from growing.”
“Bringing online accommodation into the formal economy can help level the playing field between registered establishments and operators who have previously operated outside the regulatory system.
“It can also improve the quality of information available to policymakers on bed capacity, occupancy and tourism demand, which is important when planning investment and infrastructure.”
To support the formalisation mandate, the Act equips the ZTA with expanded statutory powers.
The law stipulates that “no person shall conduct or operate that designated tourist facility unless it is registered and graded” and explicitly empowers the Authority to “shut down all unregistered facilities offering tourism services.”
Property developers building tourist amenities must now submit architectural plans to the ZTA for approval prior to construction, and ZTA officers hold expanded rights to inspect premises and audit records.
To maintain procedural fairness, aggrieved operators can appeal licensing and grading decisions to the Minister and the Administrative Court.
The legislation seeks to accelerate product diversification away from traditional primary hubs such as Victoria Falls and Kariba towards cultural, sports, medical, culinary, and community-based tourism across all provinces.
Environmental, Social, and Governance (ESG) principles are formally embedded into the statute.
“All tourism policies, programmes and projects shall incorporate the principles of sustainable development, including environmental protection, cultural preservation, and socio-economic equity,” the Act notes.
Furthermore, the Act mandates gender equality, disability inclusion, and indigenous rights protection.
To reinforce corporate governance, the ZTA Board will consist of 6 to 12 members, with a mandatory 50 per cent minimum female representation.
Board expertise will span economics, law, conservation, finance, and hospitality.
The CEO position will carry a maximum of two five-year terms.
The legislation also grants formal legal status to Mosi Oa Tunya Development Company (Private) Limited as the State’s main asset-holding company for tourism facilities.
The Act will officially take effect on a date to be gazetted by the President through a Statutory Instrument.
Sector focus now shifts to operational readiness, fund capitalisation, and enforcement protocols.
Summarising the legal transition, Dr Kurapa identified three key structural pillars.
“The first is formalisation, bringing accommodation providers, including online hosts, within a recognised regulatory system.”
“The second is quality and sustainability, strengthening registration, grading, inspections, environmental safeguards and inclusive tourism development.”
“The third is financing, creating the Zimbabwe Tourism Fund to mobilise and deploy resources towards tourism development and infrastructure.”
“The practical test will now be implementation.”
With tourism identified as a core foreign currency earner and key pillar under the National Development Strategy (NDS), market players agree that success will ultimately be measured by tangible capital deployment and destination growth.
“The Act has therefore moved tourism policy beyond simply regulating operators,” Dr Kurapa noted.
“It has created a framework intended to formalise the market, strengthen the authority responsible for oversight and establish a dedicated financing mechanism for the sector.
“The next phase will be to turn those provisions into functioning institutions, funded projects and tangible improvements across Zimbabwe’s tourism destinations.”
