Bulawayo — The Portfolio Committee on Tourism and Hospitality Industry has issued a stark warning that the sector is facing an 80 percent budget shortfall, appealing for a ZiG 1.71 billion allocation to prevent Zimbabwe from losing its competitive edge as a global destination.

Presenting the committee’s 2027 Pre-Budget Seminar submission at the ZITF Grounds in Bulawayo on Wednesday, Committee Chairperson, Joanah Mamombe revealed that Treasury has proposed a ceiling of only ZiG 340.6 million, leaving a staggering ZiG 1.37 billion gap.

The shortfall impacts key agencies severely, with the Ministry facing an 80 percent deficit, the Zimbabwe Tourism Authority (ZTA) at 92 percent, and the Ministry of Sport (MOSI) at 39 percent.

“In light of the acute inadequacy of the allocated budget relative to their strategic priorities and operational imperatives, we appeal for more resources,” Mamombe said.

“Fully funding the 2027 bid for Tourism guarantees Zimbabwe’s status as the World’s best destination to visit and all benefits that accrue.”

To close the gap, the committee proposed a raft of fiscal interventions, including a review of taxes on domestic flights to cap them at 30 percent of ticket cost, zero-rating VAT on domestic services, and channeling the 2 percent tourism levy directly into destination accessibility.

The committee also called for duty rebates for re-tooling hotels, casinos, and car hire services ahead of the Intra-African Trade Fair (IATF) 2029, alongside the delivery of 10,000 additional rooms required to host the 20,000-room trade fair in Harare.

Mamombe highlighted the sector’s resilience despite international headwinds, noting that tourism investment surged by 229 percent in the first half of 2026, while domestic tourism trips rose 27 percent to 6.4 million and receipts grew 31 percent to US$207 million.

However, international tourist arrivals and receipts declined by 3 percent and 6 percent respectively, attributed to geopolitical tensions in the Middle East following the bombing of Dubai International Airport in March.

The committee warned that budgetary constraints have resulted in critical gaps in Tourism Statistical Accounting (TSA), inadequate roads and convention facilities for MICE tourism, and limited funding for the Tourism Academy and provincial devolution.

“Underdeveloped tourism products such as Tugwi-Mukosi remain untapped, while insufficient capacity for compliance enforcement risks unregistered facilities, weaker service standards, and potential revenue leakages,” Mamombe added.

The committee further recommended the rehabilitation of provincial aerodromes and major road networks, as well as climate-mainstreamed infrastructure, to ensure universal destination accessibility.

The presentation also underscored tourism’s role as a climate buffer, noting that with an 88-94 percent likelihood of an El Niño drought in 2026/27, the sector’s 6.2 percent GDP contribution and 3.5 percent formal employment sustains a critical economic lifeline that agriculture and mining cannot match.

“The strong growth in tourism investment and domestic tourism helped cushion the modest decline in international tourism performance,” Mamombe said, citing the positive image of Destination Zimbabwe and cluster-based strategies to stimulate domestic tourism.

“Despite international headwinds, the sector demonstrated resilience, with total tourism receipts increasing by 6 percent to US$508 million.”

Zimbabwe’s global standing was further validated by Forbes Magazine naming it the World’s Best Country to Visit in 2025, and the Pacific Area Travel Writers Association (PATWA) awarding it Destination of the Year: Natural Wonders for 2026.