Stakeholders in the tourism sector are demanding greater transparency, accountability, and ring-fencing of resources under the proposed Tourism Bill (H.B. 7, 2025), insisting that tourism-generated funds must be ploughed back into the industry, with no discretionary or political use while governed by a transparent criterion for project selection and disbursement.
This emerged from the findings of the Parliamentary Portfolio Committee on Tourism and Hospitality Industry, which reported that stakeholders across the country had spoken on the need to safeguard the proposed Zimbabwe Tourism Fund from misuse and political interference.
The Tourism Bill forms part of the government’s broader effort to align tourism legislation with the Constitution and the Public Entities and Corporate Governance Act (Chapter 10:31), making sure tourism growth translates into equitable social and economic benefits for all Zimbabweans, particularly marginalised communities.
Public consultations conducted by Members of Parliament in Harare, Marondera, Mutare, Masvingo, Bulawayo, Matopos, Hwange, Victoria Falls, Gweru and Chinhoyi revealed widespread concern over how the proposed Tourism Fund would be administered.
Committee Chairperson, Joanah Mamombe, told Parliament recently that stakeholders called for “greater transparency and accountability in the proposed Tourism Fund,” including consideration of establishing it as a revolving facility to support small operators.
“Clause 13 provides for investment of monies not immediately required by the authority,” she said.
“The clause gives the Minister, acting on the advice of the Minister of Finance, the power to invest money not immediately required by the authority. The public called for a monetary value to be realised within the tourism sector.”
She said citizens strongly advocated for the money to be ring-fenced for tourism development, noting that funds would be proceeds from tourism levies collected within the sector.
“There was a call to ring-fence the money for tourism development since the monies would be proceeds from the tourism sector, so the money should be ring-fenced to be ploughed back into the sector,” Mamombe said.
Clause 18 of the Bill provides for the establishment of the Zimbabwe Tourism Fund, financed by tourism levies and potentially other fiscal allocations and administered by a newly created Tourism Council appointed by the Minister.
Mamombe explained that while the creation of a dedicated council to manage the fund aligns with international best practice, stakeholders questioned whether this structure would enhance accountability or create duplication and conflicts of interest.
“However, sector stakeholders proposed that instead of having a council, the Board should appoint a sub-committee to superintend the affairs of the fund,” she said.
She added that such a sub-committee would report to the full board, which in turn would remain accountable to Parliament.
Concerns were also raised about centralisation of power in the office of the Minister, as it would render the Board of the Authority powerless.
“It was submitted that too much power was being centralised to the Minister in the administration of the fund,” Mamombe said.
Stakeholders argued the Minister should not act as trustee, as this could compromise the independence and credibility of the council and board, given that appointments are made at the Minister’s discretion.
In addition, the public called for Clause 18(3) to clearly define what constitutes “development” and “promotion” of tourism to avoid misuse of resources.
“There should be very clear rules on use of funds, with ring-fenced objectives such as infrastructure development, community empowerment and destination marketing,” Mamombe said, noting that international best practice requires transparent criteria for project selection and disbursement.
Clause 20, which outlines how monies from the Zimbabwe Tourism Fund shall be used, also drew significant input from stakeholders.
“The public viewed the establishment of the Zimbabwe Tourism Fund as a vital cog within the tourism development and promotion matrix,” Mamombe said.
“It was submitted that the administration of the fund should clearly be articulated in the Act.”
Stakeholders urged Parliament to include a specific clause detailing the application and purpose of the fund to prevent abuse.
Among the strongest submissions was the call for the fund to be channelled toward tourism-related infrastructure development, particularly road networks leading to key destinations.
“The road network to tourist destinations is in a dire state and the fund should be used for such purposes,” Mamombe said, citing Victoria Falls and Kariba as examples.
Beyond roads, participants recommended that the fund support improved network connectivity, clear signage and other infrastructure that enhances access and visitor experience.
Mamombe noted that historically, tourism funds contributed to major developments such as the establishment of the former Sheraton Hotel, demonstrating the transformative potential of a well-managed fund.
“If properly administered, the fund can contribute to millennial tourism developments,” she said, adding that it could also support green tourism initiatives such as solar energy investments and environmentally sustainable facilities.
There were also proposals to convert the fund into a revolving facility to assist small and medium enterprises (SMEs), many of whom struggle to access credit from conventional banks.
“The tourism players can be allowed to borrow from the fund and develop tourism facilities, import duty-free vehicles and pay back to the fund,” Mamombe said.
“Players can then apply for loans since some are failing to access loans from banking institutions because of stringent terms and conditions.”
Communities in tourism-rich areas such as Hwange and Victoria Falls argued that they have not sufficiently benefited from tourism revenues and suggested that a quota, potentially up to 10 percent, be allocated toward Corporate Social Responsibility initiatives and community development.
Mamombe said, adding that similar sentiments were echoed in Mashonaland West, where calls were made to allocate resources toward natural resource preservation.
On regulatory provisions under Clauses 23 to 40, Mamombe said stakeholders supported the introduction of mandatory registration, licensing and inspections, including for online platforms such as Airbnb.
However, they urged the government to balance compliance with accessibility.
Participants recommended online licensing systems, warnings and fines before licence revocation and affordable compliance costs for SMEs.