Tourism Revolving Fund to continue in 2022
GOVERNMENT is set to continue availing stimulus financing through the Tourism Revolving Fund into year 2022 as it commits to supporting the sector’s recovery from the adverse impact of Covid-19.
The Government introduced the $500 million tourism support fund last year after the sector was hit hardest by Covid-19.
The funding guarantees for tourism sector players to access working capital in form of loans from banks.
Under the model, a total of $20 million was meant to provide seed capital to kick-start a tourism recovery fund while value added tax payable by tourists for accommodation and services was waived.
This was part of an $18 billion economic recovery stimulus package by Government aimed at re-invigorating the economy following slowdown induced by Covid-19.
In a speech read on his behalf by chief director Dr Douglas Runyowa during a Zimbabwe Tourism Authority (ZTA) strategic planning workshop in Bulawayo, Permanent Secretary in the Ministry of Environment, Climate, Tourism and Hospitality Industry, Mr Munesushe Munodawafa, said the continued financial support takes into account budgetary constraints facing the sector at a time when it needs to secure more recourses to promote growth.
“Amidst the acute budget shortage, I assure you that the ministry will continue to support the industry. In this regard, the ministry will continue to lobby for more resources to the industry through the Tourism Revolving Fund, which should be availed in the 2022 budget,” said Mr Munodawafa.
“We are committed to continue nurturing the sector and drive increasingly impactful and collaborative strategies and programmes for sustained and inclusive growth into the future.
“However, the authority should also explore innovative ways to mobilise more resources even from the cooperating partners.”
Contacted for comment, Hospitality Association of Zimbabwe (HAZ) president Mr Clive Chinwanda said the tourism and hospitality industry was hard hit by Covid-19 and needs more support to regain lost ground.
“The industry has been the worst affected by Covid-19. What this means is that there is need for concerted effort on the part of Government and the private sector to restore not only the viability of the sector, but also the competitiveness of the industry,” he said. Mr Chinwanda said comprehensive support measures were needed to resume suspended projects and jump-start affected operations.
“There is need for a cocktail of measures ranging from fiscal support to incentives such as import duty suspension for capital goods to facilitate reinvestment, as well as the resumption of suspended capital projects,” he said.
“The revolving fund has traditionally been touted as the solution and there had been very little traction. Therefore, the industry would hope for other targets and initiatives within reach.
“For instance, strengthening and enhancing the effectiveness of ZTA through more fundingso that the authority can be more effective in its role of marketing the destination.
“Of course, fiscal and budgetary support measures such as tax holidays, import duty exemption and any other support such as low-cost financing will help the sector to emerge from the crisis.”-The Chronicle
