Tourism sector makes fresh plea for bailout

DESPITE the Covid-19 pandemic being declared officially over by the World Health Organisation, its impact on the economy continues to be felt, with the local tourism sector sending out a cry for help.
Zimbabwe’s tourism was one of the worst affected sectors after global travel was restricted heavily, affecting local players’ cash flows.
At the height of the pandemic, the government came up with a $500 million Tourism Support Fund in guarantees for sector players to access working capital in the form of loans from financial institutions.
A total of $20 million was meant to provide seed capital to kick-start a Tourism Revolving Fund, while Value Added Tax, payable by tourists for accommodation and visitor services, was waived. This was after the government put together a $18 billion stimulus package to kick-start the economy after the pandemic hit Zimbabwe’s shores.

However, fiscal authorities later diverted a huge chunk of that money to fund agricultural projects, leaving the industry in need of fresh funding to enhance production. Notably, the value of these figures has since been significantly eroded by inflation.
Tourism Business Council chief executive, Paul Matamisa, told The Financial Gazette that the programme was never implemented.
“Up until now our members are still requesting and asking for the support that was announced in 2020. So, it’s still an issue that is affecting us. Some may ask why we still talk about a Covid-19 package. The Covid-19 package is important because the effects of the outbreak are still lin