Zimbabwe risks losing 100 000
potential jobs in the tourism industry following the introduction of 15 percent
value added tax  (Vat) on foreign tourists, the Zimbabwe Council for
Tourism (ZCT) has warned.

Francis Ngwenya, the ZCT
president, told businessdaily that the tourism sector targeted to grow its
workforce from the current 300 000 to 400 000 this year on the back of 
increased tourist arrivals.

However, he said “the
imposition of 15 percent levy on non-resident Zimbabweans will slow down our
ability to attract high value tourists because we are now an expensive tourism
destination”.

In January, government imposed
a 15 percent tax on foreign tourists’ accommodation. Zimbabwe has not been
charging Vat on foreigners’ accommodation payments and tourism-related
services. When the Vat system was introduced in 2003, the travel and tourism
sector was recognised as an exporter and was exempt from Vat on foreign
visitors’ payments.

Ngwenya, nonetheless, said tourism
players will continue to negotiate with the government to find lasting
solutions to make the country more competitive so that it can attract more
foreign tourists.

“This Vat is now in place but
we shall continue lobbying as we strongly believe vat is an obstacle to growth
and development and will serve to make this a more expensive and thus less
competitive destination,” he said.

The recent tourism hike is not
only threatening the creation of jobs in the tourism industry but also has
far-reaching implications on the sector which is struggling to reach the peak
of 2, 2 million tourists recorded in 1999.

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