During the Tourism Amendment Bill consultation workshop held
in Harare on Monday, the Honorable Barbara Rwodzi, Minister of Tourism and
Hospitality Industry, unveiled this information.
Within the tourism and hospitality industry, operators are
subject to a 2% revenue levy imposed by the government. These funds are
deposited into the Zimbabwe tourism Fund (ZTF), currently managed by the
Zimbabwe Tourism Authority (ZTA). A modernized ZTF is essential for Zimbabwe to
achieve its goal of developing a tourism industry valued at a minimum of US$5
billion by the year 2025.
The tourism industry, a crucial sector for Zimbabwe’s
economy, experienced significant growth in 2022, generating $911 million
compared to the $397 million recorded in 2021. Notably, the fund has had a
lasting impact on Zimbabwe’s hospitality sector, particularly with the
construction of the Rainbow Towers, formerly known as Sheraton, which was
financed through resources from the fund when it was managed by the Zimbabwe
Tourism Development Corporation (ZTDC).
Addressing stakeholders at the workshop, Minister Rwodzi
emphasized the potential benefits of establishing a standalone Zimbabwe Tourism
Fund (ZTF). She highlighted that such a fund would enhance good governance,
transparency, and accountability within the tourism sector. The ZTF’s financial
resources would be strategically utilized to promote local tourism offerings
and provide crucial support to industry players facing capital constraints.
Minister Rwodzi specifically mentioned that the ZTF funding could be
effectively channeled towards the refurbishment and revitalization of
dilapidated tourism facilities, thereby contributing to the overall improvement
of the tourism landscape in Zimbabwe.
"It has been proposed to amend the provisions of part
IV of the Tourism Act, which provides for the Zimbabwe Tourism Fund by
establishing an entity responsible for its management and administration.
"ZTF is supposed to be on its own, with its own
management to ensure good governance, transparency and accountability. "We
want the fund to be directed more at promotions and development of the local
tourism sector. The money should also be used to help hospitality start-ups
which require capital."
The Honorable Minister Rwodzi emphasized the critical
importance of adequately funding and supporting the tourism sector to ensure
its operational effectiveness. He highlighted the existence of a dedicated fund
aimed at assisting stakeholders in the industry. Despite this provision, the
Minister expressed concern over the decline in tourism standards and called for
immediate action to address this issue.
"How come we are not expanding? We do not have a hotel
that has over 200 rooms in Victoria Falls yet it is our biggest tourism city.
How come there is benevolence about Bulawayo -Victoria Falls road, no road
signs when tourists are paying a lot of levy in Victoria Falls
"How come the roads leading to the mega tourist
destination are not even marked, that is what that money should be used
for."
During the Tourism Amendment Bill stakeholder consultation,
Dr. Takaruza Munyanyiwa, the permanent secretary for Tourism and Hospitality,
emphasized the significance of knowledge and experience sharing to drive the
growth of the tourism sector in Zimbabwe.
"We remain alive to the fact that our policies and
legislative instruments remain vital forces for driving sustainable development
in the tourism sector. The Zimbabwe we want has defined tourism as a quick win
to socio-economic development due to several positive factors which include,
its ability to generate employment, contribution to the growth of Small-Medium
Enterprises, its potential to attract Foreign Direct Investment, and
contribution to foreign exchange.
"It is prudent for us to bring our diverse perspectives
to the amendment of our existing law and align it with our national
constitution, and regional and international best practices. In doing so I
therefore request your much-needed valuable input on areas that require
fine-tuning for the development of our tourism industry," said Dr
Munyanyiwa.
The tourism industry presents a readily accessible
opportunity for the nation to generate foreign currency and create employment.
It is identified as one of the key sectors that will play a pivotal role in
achieving sustainable economic growth, as outlined in the National Development
Strategy 1.
Consequently, the Second Republic has been actively
promoting the advancement of the tourism and hospitality industry by
formulating a comprehensive national tourism policy. This policy aims to
solidify and augment the sector’s recovery, thereby optimizing economic gains
concurrently.
President Mnangagwa has significantly intensified his
endeavors to foster tourism growth by recently introducing the National Tourism
Recovery and Growth Strategy.