Confirmed
in
the
2026
national
budget,
the
measure
raises
the
standard
VAT
rate
from
15%
to
15.5%
and,
more
significantly,
reclassifies
tourism
activities
and
transfers
from
zero-rated
to
standard-rated
VAT.
While
the
accommodation
component
faces
a
marginal
increase,
activities
and
transfers
now
attract
VAT
of
15.5%
hiking
the
cost
of
many
tourism
packages.
Cost
implications
According
to
Africa’s
Eden
CEO Jillian
Blackbeard, the
impact
is
uneven
across
bookings,
depending
on
when
contracts
were
concluded
and
paid.
“Bookings
that
were
fully
invoiced
and
paid
before
January 1
are
largely
being
honoured
at
previously
agreed
rates,”
she
said.
“The
main
challenge
lies
with
2026
contracts
negotiated
on
a
zero-rated
basis
but
not
yet
fully
paid.”
Many
of
these
bookings
were
finalised
12
to
24
months
in
advance,
particularly
for
group
travel
and
Victoria
Falls-based
itineraries.
The
sudden
reclassification
has
forced
operators
to
reassess
pricing
on
programmes
already
distributed
through
international
agents
and
global
distribution
channels.
Blackbeard
noted
that,
while
marginal
increases
may
be
absorbed
in
some
cases,
“there
is
very
limited
capacity
to
absorb
a
full
15.5%
uplift
on
activities
and
transfers
without
eroding
already
thin
margins”.
For
existing
unpaid
bookings,
this
has
triggered
difficult
renegotiations
with
international
agents
and
clients,
raising
the
risk
of
reputational
damage
at
a
time
when
the
sector
is
still
consolidating
its
post-COVID
recovery
amid
broader
global
economic
and
geopolitical
uncertainty.
The
VAT
shift
also
introduces
additional
administrative
and
compliance
challenges.
Operators
must
now
revise
systems,
contracts
and
rate
structures
to
apply
VAT
consistently
across
accommodation,
activities,
transfers
and
bundled
packages.
In
a
multi-currency
environment,
this
increases
compliance
risk,
administrative
cost
and
the
potential
for
disputes,
particularly
where
cross-border
services
and
regional
excursions
are
involved.
A
blow
to
competitiveness
From
a
competitiveness
perspective,
Blackbeard
said
the
change
weakens
Zimbabwe’s
relative
pricing
position
within
the
region.
“Southern
African
destinations
now
offer
comparable
product
quality
and
wildlife
experiences,”
she
said.
“Removing
zero-rated
VAT
on
key
tourism
services
makes
Zimbabwe
less
competitive,
particularly
for
short-stay
extensions
and
multi-country
itineraries
where
buyers
are
making
close
price
comparisons.”
Industry
concerns
are
echoed
in
recent
reporting
by The
Herald with
tourism
bodies
warning
that
the
timing
of
the
VAT
change
threatens
already
confirmed
2026
bookings.
Tourism
Business
Council
of
Zimbabwe
President Clive
Chinwada said
long
booking
cycles
make
it
difficult
to
revise
contracted
rates
while
Employers
Association
of
Tour
and
Safari
Operators
Representative Clement
Mukwasi noted
that
around
75%
of
2026
packages
were
already
confirmed
and
paid
for
by
mid-2024.
Calls
for
grace
period
Industry
representatives
have
called
for
a
transitional
approach,
including
a
possible
12-month
delay,
to
allow
contracts
to
be
honoured
and
pricing
structures
to
be
adjusted
without
placing
additional
financial
strain
on
operators
or
undermining
Zimbabwe’s
reputation
in
key
source
markets.
“The
industry
does
not
take
issue
with
the
principle
of
VAT
being
applied
to
tourism
services
and
recognises
the
benefit
of
having
previously
enjoyed
zero-rated
status.
However,
a
phased
implementation
with
at
least
12
months’
notice
would
have
reduced
financial
and
reputational
risk,”
added
Blackbeard.