Published: 02 December 2013

Stakeholders in the local tourism industry say the government should consider extending a duty free exemption of capital goods to enable the sector to recapitalise operations.

Submissions by the tourism sector for consideration in the 2014 national budget show that the industry is experiencing problems in recapitalising operations due to the high costs of importing machinery after the expiry of a duty free regime on capital imports in August.

Zimbabwe Council for Tourism (ZCT) president, Francis Ngwenya says the recapitalisation of the industry will depend on an extension of the duty free structures for capital goods.

"We hope the government will extend the duty free regime for the benefit of the tourism sector," he said.

The Group Chief Executive Officer for a listed hotel company, Dr Shingi Munyeza says the upgrading of airports is important in increasing tourism earnings.

Safari Operators Association of Zimbabwe president, Emmanuel Fundira told the reporters that the government should also introduce incentives to increase the capacity of small to medium tour operators.

"The potential is there but it is being constrained by high input costs which have made it difficult for new entrants to break even," Fundira said.

Zimbabwe's tourism industry, which is projected to contribute 15 percent to the gross domestic product (GDP) this year, is experiencing capital challenges resulting in most firms restructuring operations.
- zbc

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