Online Reporter
Nqobile Bhebhe, [email protected]
THE Tourism Act has established the Zimbabwe Tourism Fund, creating a dedicated financing mechanism to support the development and promotion of the tourism and hospitality industry, including critical tourism infrastructure.
The establishment of the Fund provides the sector with a formal financing framework through which revenue can be mobilised and channelled towards implementing national tourism development priorities.
Under the Act, the Zimbabwe Tourism Fund is vested in the Minister responsible for tourism as trustee and will be administered on behalf of the trustee by a council comprising Government, finance, legal and tourism and hospitality industry representatives.
The Fund’s objects are to facilitate the development and promotion of the tourism and hospitality industry, collection and disbursement of revenue in accordance with the national tourism development plan, and development of tourism infrastructure.
The creation of the Fund comes as Zimbabwe seeks to expand the contribution of tourism to economic growth through increased investment, improved infrastructure, stronger tourism products and greater international and domestic visitor arrivals.
Of particular significance is the Fund’s mandate to support tourism infrastructure, which provides a potential financing avenue for projects required to strengthen the country’s tourism value chain.
The Tourism Act provides that the Fund will consist of money appropriated by Parliament, levies, donations, loans and other financial assistance approved by the Tourism Minister and the Minister responsible for finance, as well as any other money accruing to the Fund.
All money held by the Fund will constitute public funds and will be administered in accordance with the Public Finance Management Act, placing its operations within the country’s public-finance governance framework.
According to the Act, the Fund will be administered by a council comprising the Permanent Secretary in the ministry responsible for tourism, or a delegate, who will serve as accounting officer; a representative from the Ministry responsible for finance; four representatives nominated from the tourism and hospitality industry; a representative from the Office of the Attorney General; and a representative from Mosi-oa-Tunya Development Company (Private) Limited or any of its subsidiaries.
The Minister will appoint the chairperson and deputy chairperson of the council.
The Fund’s resources will be applied towards meeting the expenses of the tourism authority, provided such expenditure is contained in an approved budget, as well as other purposes that the Minister, after consultation with the authority, considers necessary to promote the orderly development of the tourism and hospitality industry.
The legislation also provides that money not immediately required by the Fund may be invested in a manner approved by the Minister responsible for tourism, acting on the advice of the Minister responsible for finance.
The Fund’s financial year will run for 12 months ending on December 31 each year.
The establishment of the Zimbabwe Tourism Fund marks an important institutional development for the tourism sector by providing a dedicated vehicle for mobilising and managing resources for tourism development.
Its ability to support the sector, however, will depend on the resources mobilised, the projects prioritised and the effectiveness of governance and accountability systems in ensuring that funding is directed towards national tourism development priorities
