Standalone fund to drive tourism growth
THE Government is working on establishing a standalone Zimbabwe Tourism Fund (ZTF) to drive the sector’s growth and the realisation of targets set under Vision 2030.
Minister of Tourism and Hospitality Industry Barbara rwodzi revealed this at the Tourism Amendment Bill consultation workshop held in Harare on Monday.
operators in the tourism and hospitality sector are levied 2 percent of their revenue by the Government, which is deposited into the ZTF currently run by the Zimbabwe Tourism Authority (ZTA).
A revamped ZTF is critical for Zimbabwe to drive to build a tourism industry worth at the very least US$5 billion by 2025.
one of the strategically key sectors to Zimbabwe's economy, the tourism sector generated US$911 million in 2022 compared to US$397 million recorded in 2021. The fund, in its old format, already has an indelible mark on Zimbabwe’s hospitality industry after the construction of the rainbow Towers, formerly Sheraton, was built using resources from the fund; then administered by the Zimbabwe Tourism Development Corporation (ZTDC).
Addressing stakeholders at the workshop, Minister rwodzi said a standalone ZTF would have improved good governance, transparency and accountability.
Its funds would be used to promote local tourism offerings and support players struggling for capital.
She said the ZTF funding would, for instance, be used to spruce up derelict tourism facilities.
“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.”
Minister rwodzi said it was taboo to have an underfunded and operationally challenged tourism sector when there was a fund to assist stakeholders.
“We have seen a downfall in our tourism standards, yet we have a provision for such a fund.
“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.”
Tourism and Hospitality permanent secretary Dr Takaruza Munyanyiwa said the Tourism Amendment Bill stakeholder consultation sought to exchange knowledge and experiences vital to propel the 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 muchneeded valuable input on areas that require fine-tuning for the development of our tourism industry,” said Dr Munyanyiwa.
Tourism is considered a low-hanging fruit for the country in terms of foreign currency generation and employment and is part of key locomotive sectors that will be critical in achieving sustainable economic growth as enunciated in the National Development Strategy 1.
As such, the Second republic has been pushing for the elevation of the tourism and hospitality sector through the development of a national tourism policy to cement and enhance the sector’s recovery maximising economic returns at the same time.
President Mnangagwa has doubled up the efforts to promote tourism as he recently launched the National Tourism recovery and Growth Strategy.
The policy seeks to increase investment in the tourism sector.