Zimbabwe's tourism industry will show strong growth out to 2021 in terms of both arrivals andreceipts, though both will come from fairly low bases. Europe will drive the expansion in both, as long-haularrivals to the country return, but factors such as the VAT on accommodation, regional economic concernsand poor transport infrastructure will restrict strong growth in arrivals from Africa. Zimbabwe has a strongarray of tourism attractions, but its limited hotel options and poor transport connections will prevent thepotential of these destinations being reached. That said, schemes such as the univisa with Zambia show awillingness to make the country more accessible to tourists.
Key Updates And Forecasts
In July 2017, the government confirmed that it had rescinded an order for a VAT levied on theaccommodation to be backdated to 2009. The VAT, introduced in January 2015, covers food andbeverage products included in hotel and accommodation packages. A number of hotels in the countrywere ordered to pay in excess of USD1mn in tax arrears, but this has been overturned. VAT representsmore than half of Zimbabwe's annual tax revenues.