Zim to offer more tax incentives to tourism

Zimbabwe will offer more tax incentives to tourism operators to boost investment into the sector, Finance and Economic Development Minister Professor Mthuli Ncube said.

“Government will extend incentives to the sector to aid recovery and performance during 2023 and beyond, particularly through tax incentives that allow for procurement of new capital equipment for expansion, modernisation and renovation of hotels and restaurants,” said Mthuli.

“These initiatives will be critical in the recovery and sustainability of the tourism sector in the medium term.”

Mthuli said the domestic tourism recovery was benefiting from a freer global travel environment as countries gradually remove Covid-19 restrictions, as well as the introduction of new flights into the country by airlines, particularly to the resort town of Victoria Falls.

He said continued destination marketing through campaigns, online marketing

and radio and television adverts were expected to improve and generate demand in the domestic market and source regions such as Africa, Europe, America and Asia.

To support the recovery of the sector, the tourism sector is the only sector allowed to retain 100 percent of its sales proceeds in foreign currency.

The industry is one of the sectors worst affected by Covid-19-induced lockdowns and travel restrictions imposed by countries in a bid to contain the spread of coronavirus.

Coronavirus, which emerged in China in December 2019, spread around the world and brought almost everything to a standstill. While other industries in Zimbabwe such as mining, manufacturing and commerce were classified as essentials and were allowed to operate, the case was different for the tourism industry.

Restaurants, hotels and bars were shut down while conferencing activities were banned.

Travelling was curtailed while borders were closed.

International tourism rebounded moderately during the second half of 2021, with international arrivals down 62 percent in both the third and fourth quarters compared to pre-pandemic levels.-ebsuinessweekly