In a significant move to boost investment and competitiveness, Zimbabwe’s Ministry of Finance, Economic Development and Investment Promotion has unveiled a major reform package for the tourism sector. Announced by Minister Mthuli Ncube, the measures aim to drastically reduce the cost of doing business and streamline regulations.
The reforms position the Zimbabwe Tourism Authority (ZTA) as the central regulatory body for tourism. Key changes include a 50% cut to previously inconsistent local authority licensing fees and a substantial review of the ZTA’s own charges.
Fee Reductions at a Glance:
- Hotel Licences: Five-star hotel renewal fees drop from up to US$5,250 to US$2,000.
- Guest Houses: Renewal fees reduced from up to US$500 to US$150.
- Boat Permits: The US$600 annual commercial boat permit is abolished; houseboat permits halved to US$1,250.
- Aviation: Aircraft registration fees cut from US$500–1,000 to just US$20.
- Tour Operators: External tour operator licences reduced from US$3,000 to US$1,500.
- General Businesses: Registration for services like travel agencies, restaurants, and conference operators falls from US$305 to US$100.
The government has also removed duplicative requirements, such as separate liquor licences for tourism businesses where they are already issued by local authorities.
To spur new investment in areas like accommodation, eco-tourism, and aviation, a new incentive package introduces duty rebates on equipment, tax holidays for new developments, and benefits for operators in designated Tourism Development Zones. Broader investment costs have also been lowered, with the General Investment Licence fee reduced and charges for Special Economic Zone certificates revised.
While business groups have welcomed the announcements, they emphasize the need for the government to formally gazette the new rules to ensure their legal implementation.
