THE Government has scrapped Value Added Tax (VAT) on the tourism industry as it moves to drum up support for the recently launched domestic tourism campaign meant to encourage locals to visit tourist attractions in the country.In doing away with the levy, the Government also unveiled the ZIMBHO promotion which is part of a raft of measures being implemented in reviving the tourism sector which was hard hit by effects of Covid-19. As the pandemic ravaged, tourism spaces were closed and it spelt doom for the industry that was highly reliant on foreign visitors.
At least 80 percent of Zimbabwe’s tourism activity, as noted by the Zimbabwe Tourism Authority (ZTA) is done by international tourists. The industry now pins hope on the local travel enthusiast. Fronted by the ZTA, the removal of VAT and the ZIMBHO campaign came at a time when the Government presented its master strategy of reviving tourism with the National Tourism Recovery and Growth Strategy.Hopes are high that if locals engage in travel and tour, the $5 billion tourism economy will be achieved in five years.
Speaking at the launch of the campaign on Thursday in Kariba, Environment, Climate, Tourism and Hospitality Industry Minister Nqobizitha Ndlovu said the initiative was meant to boost the economy through the tourism sector. For the initiative to yield results, he said the Government has exempted VAT on all tourism services for domestic tourists.