Online Reporter
Rutendo Nyeve, Victoria Falls Reporter
THE tourism and hospitality industry has overwhelmingly welcomed the recent Cabinet approval of a comprehensive review of levies, licences, fees and permits, describing it as a monumental step towards improving the ease of doing business. The reform is expected to lower operational costs, attract critical investment, and enhance the sector’s global competitiveness.
This transformative move is set to redefine the operational landscape of one of Zimbabwe’s key economic pillars.
It follows an extensive Government-led consultative process that engaged stakeholders across vital subsectors, including accommodation, hospitality and catering, tour guiding and operations, boating services and vehicle rental services.
These areas have long been burdened by a complex and often duplicative regulatory framework, which operators have described as both costly and time-consuming. The review aims to eliminate unjustifiable licences and permits, streamline overlapping requirements, and significantly reduce what were previously considered excessively high fees.
The Government has announced a broad spectrum of reductions, with many fees cut by 25–50 percent and others scrapped entirely. The reviewed regulatory instruments are also slated for further refinement to ensure they foster a competitive and thriving tourism industry.
In an interview with Zimpapers, president of the Tourism Business Council of Zimbabwe (TBCZ), Mr Clive Chinwada, praised the Government’s decision, highlighting its potential to address long-standing competitiveness challenges.
“This is a good move, it is welcome. I think throughout various platforms, including the National Competitiveness Forum, there has been work around trying to deal with addressing facets that make our various industries uncompetitive. We are happy that for years we have been talking about the need to address the issues of cost of doing business,” Mr Chinwada said.
He pointed to the duplication of licensing as a prime example of the inefficiencies that have plagued the sector.
“For a hotel to run, we pay to our authorities — the local tourism authority — a licence to operate, and we pay to a local council another operating licence. So, in essence, there is duplication of licensing there. Why should one entity pay two licences to operate? We are assuming and hoping that this model will now localise the licensing regime.”
Mr Chinwada also clarified that while consumers may not immediately see price reductions, the reform is a powerful catalyst for investment.
“Ordinarily, the expectation is to have reduced prices for our customers, but pricing is a function of many factors. So, you can’t quickly conclude that a reduction in fees will directly lower prices. However, what it will do is attract investment. We know for certain that ease of doing business results in investment coming in. And when investment comes in, there’s more supply, which would eventually translate to lower prices.”
Echoing similar sentiments, tourism executive and Shearwater Public Relations and Corporate Affairs Manager, Dr Clement Mukwasi, highlighted the administrative burden of dealing with multiple authorities and expressed hope for a more co-ordinated system.
“The tourism industry has multiple licensing authorities, which include the Zimbabwe Tourism Authority, Parks and Wildlife Authority, Roads Authority, the Aviation Authority, among others. It’s our hope that a dedicated licensing authority for the tourism sector be established for ease of doing business. There should be a co-ordinated approach to the acquisition of all licences and permits,” said Dr Mukwasi.
He emphasised that rationalised costs would be a boon for both local entrepreneurs and foreign investors.
“The rationalised lower costs inspire confidence, especially for emerging businesses owned by locals. The industry had become very expensive and would require lawyers to deal with licensing issues. Lower fees will also attract direct foreign investments, which in turn will increase the market base for the industry.”
Dr Mukwasi also detailed the inefficiencies of the previous system.
“In many cases, the multiple licences would create a chicken-and-egg situation. A lot of time would be spent shuttling between various Government offices. This would lead to loss of service time for the operators. We celebrate the new initiative, which will remove some of the red tape.”
He confirmed that the ultimate beneficiary of these cost savings would be the tourist, reinforcing Zimbabwe’s reputation for high-quality service.
“If the licence and permit fee reductions are significant, the major beneficiary shall be the client. It’s our hope that the reduction in the cost of sales shall benefit both the clients and the shareholder.”
While celebrating the dawn of a new era for operators, Dr Mukwasi also sounded a note of caution, urging that standards and environmental sustainability remain paramount.
“The reduction in licence and permit fees may impact negatively on the ability of ZTA to attend industry shows abroad. We also hope that the standards for new operators will not compromise the current levels. There should still be control of the number of operators to be licensed in the interest of sustainable development and protection of the environment.”
The licensing review reform stands as a cornerstone of the Government’s broader ease-of-doing-business agenda, designed to stimulate sustainable economic growth.
