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Lungile Tshuma Business Correspondent
THE declaration of Victoria Falls as a Tourism Special Economic Zone (SEZ) is likely to increase Foreign Direct Investment (FDI) setting the tone for the country to attain its target of generating $5 billion in revenue from the tourism sector annually. Early this year the Minister of Tourism and Hospitality, Engineer Walter Mzembi, said by 2020, the country was set to earn $5 billion when work to revamp its tourism infrastructure is completed.
Presenting the 2016 National Budget, Finance and Economic Development Minister Patrick Chinamasa said in its move to expedite the setting up of the tourism Special Economic Zone in Victoria Falls, the Government availed 274 hectares of land to a Special Purpose Vehicle, Mosi-Oa-Tunya Development Company, incorporated in March 2012 through the Ministry of Tourism and Hospitality to facilitate the implementation of this concept.
Minister Chinamasa said the SEZ should leverage on the various tourism products already in existence, which include, among others, leisure, business, conferences, financial, medical, sports, religious, cultural and education.
“The project should bring immense benefits through expected growth in tourism arrivals, increase in tourism generated income and employment creation across the value chain.
“Accordingly, drawing from international best practices, the necessary incentives and dispensations in the areas of taxation, duty, liberal visa regimes and exchange control regulations will be availed,” he said.
Employers’ Association of Tourism and Safari Operators president Mr Clement Mukwasi said the move by the Government to declare Victoria Falls as a tourism SEZ would also have positive effects towards addressing liquidity challenges in the country as well as playing a pivotal role in reviving the financial sector.
“The development is likely to emancipate growth in FDIs investment in Victoria Falls and the country at large. One of the benefits, which come with a SEZ is that we will be exempted from some tax and this is a relief to us. With such a development, we will also see the expansion of the town and the benefit will not go to institutions and Government only but the general populace,” said Mr Mukwasi.
He said the declaration of the resort town as a SEZ would facilitate entry of new players bringing competitiveness into the industry.
“There are going to be more players in this tourist destination and this will result in competition, which is of course healthy because it improves the quality of services that will be offered.
“However, it’s not only the tourism sector which is set to benefit from such a positive move but also some players like the banking sector. As a result, more money is going to circulate in the market and this can also lead to banks being able to lend or disburse loans to people,” Mr Mukwasi said.
He further indicated that with developments like these the country’s tourism industry might attain its target of increasing its revenue generation from $1 billion to $5 billion in 2020.
“It is highly possible for tourism to surpass its target of remitting $5 billion a year to Treasury. Zimbabwe has been the best tourism destination and the arrivals are going to increase also meaning that the revenue from tourism is set to balloon,” he said.
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