RESEARCH REPORT

The Impact of Import Management Measures on Tourism Businesses in Zimbabwe

In June 2016, the government of Zimbabwe (GoZ) gazetted Statutory Instrument (SI) 64 of 2016 which regulated the importation of 43 products, by removing them from the Open General Import Licence (OGIL). The rationale for the import management measures was to help government manage the high import bill, boost local capacity utilisation, avert company closures and address the challenges stemming from the usage of the multi-currency regime. Initially the Minister of Industry and Commerce had assured the industry that the Tourism sector was not targeted with the introduction of the SI as their imports were for direct use within the industry and not intended for resale to the general public on a massive scale that affects the manufacturers. However eventually they were still required to apply for import permits including duty rebatable capital goods equipment which we were allowed through the SI5 of 2016, Customs and Excise (Tourism (Rebate). The SI 64 has therefore brought about unintended negative impacts on the hospitality sector which in turn has created a negative domino effect on the whole tourism industry due to the intricate linkages that are characteristic of the sector. The ability of the sector to earn the foreign that the country desperately needs has therefore been compromised.

The purpose of the study was to analyse the impact of existing import management measures on the hospitality sector represented by the Hospitality Association of Zimbabwe (HAZ), and any knock-on effects on other sub sectors in the tourism value chain.

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POLICY BRIEF

The Impact of Import Management Measures on Tourism Businesses in Zimbabwe August 2017

The following information summarises findings of a study commissioned by the Hospitality Association of Zimbabwe (HAZ) on the impacts of Statutory Instrument (SI) 64 of 2016 on the hospitality sector. In June 2016, the government of Zimbabwe (GoZ) gazetted SI 64 which regulated the importation of 43 products, by removing them from the Open General Import Licence (OGIL). The rationale for the import management measures was to help government manage the high import bill, boost local capacity utilisation, avert company closures and address the challenges stemming from the usage of the multi-currency regime.

Initially the Minister of Industry and Commerce had assured the industry that the Tourism sector was not targeted with the introduction of the SI as their imports were for direct use within the industry and not intended for resale to the public on a massive scale that affects the manufacturers. However eventually they were still required to apply for import permits including duty rebatable capital goods equipment which we were allowed through the SI5 of 2016, Customs and Excise (Tourism (Rebate). The SI 64 subsequently brought about unintended negative impacts on the hospitality sector, which in turn created a negative domino effect on the whole tourism industry due to the intricate linkages that are characteristic of the sector. The ability of the sector to earn the foreign that the country desperately needs has therefore been compromised.

MORE

About HAZ

The Hospitality Association of Zimbabwe is the trade association representing and promoting the interests of owners and operators of hotels, restaurants, clubs and related establishments through out the country.

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