Source: Govt slashes tourism licence fees – herald
Debra Matabvu-Senior Reporter
THE Government has slashed various licensing costs and consolidated permits in the tourism sector, with the Zimbabwe Tourism Authority (ZTA) now established as the primary regulator under a sweeping programme aimed at reducing regulatory fees, simplifying licensing processes and eliminating bureaucratic hurdles.
Under the new regime, all local authority licence fees have been cut by 50 percent, while hotel registration and renewal charges of five-star hotels and guest houses have been reduced, as part of efforts to lower the cost of doing business.
The Government has also revised the general investment licence from US$5 000 annually to US$4 000 over three years, while the special economic zone (SEZ) designation certificate fees have been reduced from US$50 000 to US$2 500.
According to Treasury, professional tour guide registration has been reduced from US$50 annually to US$20 once-off.
In addition, game drive permits, which have been ranging between US$800 and US$1 000 have been reduced by 50 percent, while boat cruise permit has been reduced by half from between US$1 000 and US$2 000.
In addition, the Government has removed the liquor licence from the sector, as it duplicates the Liquor licensing Board.
Recently, the Government conducted a similar exercise in the agriculture, transport, retail, manufacturing and energy sectors.
Other targeted sectors include health, broadcasting, telecommunications, liquor, construction and financial services.
In a statement yesterday, Minister of Finance, Economic Development and Investment Promotion Professor Mthuli Ncube said the reforms form part of the broader national economic transformation agenda aimed at increasing investment, enhancing competitiveness and positioning Zimbabwe as a leading regional destination for travel, leisure and business.
“Tourism remains a strategic pillar in Zimbabwe’s economic development framework, contributing to employment creation, foreign currency earnings and inclusive growth,” Prof Ncube said.
“In recognition of this potential, Government has intensified structural and regulatory reforms to create a predictable, transparent and investor-friendly operating environment.
“Government has simplified licensing procedures for tourism operators through the consolidation of permits, reduction of turnaround times and digitalisation of key services.
“The primary regulatory authority for all tourism businesses is now the ZTA. Under this new dispensation, all local authority licence fees, which varied from local authority to local authority have all been reduced by 50 percent.”
Prof Ncube said ZTA reduced the renewal of hotel licences to lower the cost of doing business.
“Registration and renewal of five-star hotels have been reduced to US$2 000 from as much as US$5 250, whilst that of other accommodation such as guest houses has been reduced to US$150 from as much as US$500,” he said.
“Other requirements such as the liquor licence has been removed as it is already catered for by local authorities.”
In addition, the Government has introduced tax incentives to attract new investments in accommodation conferencing, aviation, eco-tourism and cultural tourism. Further, the authorities have also provided duty rebates on capital equipment, tax holidays for new tourism developments and special incentives for operators in designated tourism development zones.
“This includes the removal of the US$600 annual commercial boat permit, 50 percent reduction of the houseboat permit to US$1 250 and the reduction of the external tour operators licence from US$3 000 to US$1 500,” Prof Ncube added.
“The aircraft licence registration has been significantly reduced from between US$500 and US$1 000 to US$20.
“Other ancillary services such as conference operator, events companies, travel agencies and registration of restaurants, takeaways and fast foods and coffee shops have been reduced from US$305 to US$100.”
Prof Ncube said Zimbabwe was accelerating tourism growth through major upgrades to roads, airports, border posts and digital systems, including ongoing works at the Beitbridge Border Post, Victoria Falls Airport and along the Bulawayo-Victoria Falls route.
He said enhanced smart technologies at ports of entry are expected to improve visitor experience and efficiency while collaborative marketing with ZTA, regional bodies and private sector partners is being expanded.
He said this will reposition the country as a safe and competitive destination, supported by strengthened partnerships with airlines, hospitality groups and global tourism associations.
He added that the Government had strengthened investor confidence by tightening Zimbabwe Investment and Development Agency (Zida) protections, improving dispute resolution and reinforcing legal frameworks for transparent, predictable operations.
Economist Mr Trust Chikohora said the reduction in the cost of doing business in the tourism sector was set to increase investments in the area.
“Any reduction in the cost of doing business in the tourism sector or any other economic sector is welcome as this ensures Zimbabwe becomes more competitive and increases local and foreign investors,” he said. “The cost of doing business in the country was among the highest in the region. So, this needs to be done in all sectors of the economy.”
During the first Cabinet meeting of the year, President Mnangagwa reiterated his administration’s commitment to enhancing the ease of doing business.
“To enhance the overall performance of our economy, the ease of doing business agenda continues to be an important aspect of our programming,” he said. “In that regard, concerted efforts must be made to revisit all the areas that hinder the start or growth of all investments, whether local or foreign.”
In comparison, other countries in the region have far fewer regulatory requirements.
In South Africa, a retail outlet requires a maximum of eight licences to operate legally, while in Rwanda, a restaurant business needs only four permits.
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