Africa-Press – Zimbabwe. Tourism operators have urged the Government to rethink the newly introduced 15.5 per cent Value Added Tax (VAT) on tourism activities and transfers, warning that the sudden change could put already confirmed international bookings for 2026 at risk.
Industry players say tourism services such as airport transfers, cruises, safari excursions and adventure packages have traditionally been zero-rated for VAT since the tax was first introduced in Zimbabwe.
This was because most of these services are bought by foreign visitors and treated as export earnings, which are exempt from local tax.
However, from 1 January 2026, these services have been moved into the standard VAT category, meaning they are now subject to the 15.5 per cent charge.
Speaking to Zimpapers, Tourism Business Council of Zimbabwe (TBCZ) president Clive Chinwada said:
“As a tourism industry, and in Victoria Falls specifically, we deal with serious groups which ordinarily book one to two years in advance.
“When tour operators attend travel shows, they engage the market and take bookings for the upcoming year.
“Given that complexity, it is not easy to go back to clients and say we are reviewing rates which have already been distributed through intermediaries along the value chain.”
Employers Association of Tour and Safari Operators representative Clement Mukwasi said around 75 per cent of 2026 package bookings have already been confirmed and paid for, with prices negotiated and contracted as far back as mid-2024.
Mukwasi said applying VAT now would mean trying to recover extra money from international agents and tourists, something he described as unrealistic and damaging to the country’s reputation.
Meanwhile, the TBCZ said more than 70 per cent of tourism receipts come from foreign visitors and urged the Government to consider delaying the tax by 12 months.
Industry leaders warned that without a postponement, Zimbabwe could become less competitive than regional rivals such as South Africa and Namibia, while local operators may be forced to absorb unpaid VAT, putting them under serious financial pressure.
The sector has formally asked the Government to defer the VAT on tourism services until 1 January 2027 to allow time for contracts.
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