Zim tourism hit by ‘unexpected’ VAT

ZIMBABWE’S tourism
industry has been
taken by surprise by the
sudden introduction of the
controversial 15% tourism
VAT on January 16. The tax
applies to payments for
accommodation for foreign
visitors to the country.
Tour operators in Zimbabwe
expected the VAT to be
shelved after the country’s
finance minister, Patrick
Chinamasa, omitted to
mention the tax in his 2015
budget announcement.
Brent Williamson, owner of
Adventure Zone and Lodge,
says the tourism industry
was not adequately informed
as to how and when the
VAT would be implemented.
“We have only now been
advised by a Gazette dated
January 16 that the VAT is
effective immediately, leaving
us already liable for losses
for the past few days, not to
mention the people who have
already been quoted for future
stays.”
Beks Ndlovu, ceo of African
Bush Camps, says the
industry was forewarned in
May last year of the possible
implementation of VAT but no
clarity was given on when it
would be implemented and
legislated, which has led to
frustration and confusion.
“No clarity had been given
on what would happen to
confirmed bookings and which
services would be affected,
and no legal instrument had
been announced or gazetted.”
The VAT has made it difficult
for the tourism industry in
Zimbabwe to keep suppliers
up to date, says Brent. “I
have already received emails
from some of our agents
who are very upset that
they have to now go to their
clients and advise that there
is a 15% increase on their
accommodation prices.
This not only has increased
our workload, but may
possibly outpace us as a
destination.”