Published on
January 9, 2026

Zimbabwe, which has just been rated the best destination to visit in 2025 by Forbes, is facing a major blow to its tourist industry with the implementation of a new 15.5% value-added tax (VAT) on tourist activities and transfers. The implementation of the new law, which came into effect on January 1st, 2026, is poised to negate the progress achieved by the country’s tourist industry over the last few years. The implementation of the new VAT on services that were hitherto zero-rated for value-added tax, such as safari holidays, guided tours, river cruises, adventure holidays, and transfers, has caused concern for tourist operators and their counterparts abroad.

The Timing of the VAT Change: A Contractual Crisis for Operators
The timing of the VAT policy change has created a significant dilemma for Zimbabwe’s tourism industry. Many contracts for 2026 had already been confirmed and paid for by mid-2024—well before the VAT shift was announced in November 2025. This long booking cycle, particularly common in high-end safari packages and group travel, means that a large portion of tourism activities for the year were sold under the assumption that activities and transfers would remain tax-exempt.

Clement Mukwasi, a representative of the Employers Association of Tour and Safari Operators, explained that approximately 75% of the 2026 tourism packages had already been booked by mid-2024. This has left operators in a difficult position: they must either absorb the 15.5% VAT increase on activities and transfers, risking profit margins, or renegotiate with clients and agents who had locked in prices under the old system. The retroactive application of the new tax is particularly problematic for international agents who marketed Zimbabwe tours at fixed prices, as they now face the uncomfortable task of informing clients about unexpected supplementary charges.

Impact on Popular Packages and Key Destinations
The most noticeable effect of the VAT change is on tourism packages that heavily involve activities and transfers. Popular destinations such as Victoria Falls, Hwange National Park, and the Zambezi River, where adventure activities like helicopter rides, river cruises, and guided safaris are major components of the tourism offering, are now seeing an increase in package costs. For example, a typical Victoria Falls package that includes a two-night stay, game drives, a helicopter flight over the falls, and airport transfers will see a significant price hike due to the new tax.

For operators like the Victoria Falls Safari Collection, which includes four properties near the falls, absorbing a 15.5% increase on activities and transfers is financially unsustainable. While they can manage the marginal increase in accommodation VAT, the tax on activities represents a far greater burden. This has resulted in operators seeking to renegotiate contracts with international agents and clients, leading to potential disputes and dissatisfaction.

A Strain on Regional Competitiveness
Zimbabwe’s VAT increase comes at a time when the country is striving to enhance its competitiveness within the broader Southern African tourism market. Neighboring countries like South Africa, Botswana, and Zambia offer similar tourism experiences, particularly in terms of safari packages and adventure activities. As the tourism industry in Southern Africa becomes increasingly competitive, small pricing differences can heavily influence tourists’ decisions.

The new VAT policy risks making Zimbabwe a less attractive option for international travelers who are planning multi-country itineraries in Southern Africa. For instance, travelers who are considering adding Victoria Falls to a Botswana safari or a visit to Hwange might find that the added 15.5% VAT on Zimbabwe’s activities makes the entire package more expensive than similar offerings in other countries, such as South Africa or Botswana, where VAT rates have remained stable.

Financial Impact: A Major Hurdle for Small Operators
While larger operators may be able to absorb some of the costs of the new VAT, smaller businesses in Zimbabwe’s tourism sector are facing a much harder challenge. Many small operators, particularly those that specialize in bespoke, high-end travel experiences or cater to niche markets, have limited financial flexibility. For these businesses, absorbing the VAT increase without passing on the cost to clients is often not an option.

Jillian Blackbeard, CEO of Africa’s Eden, highlighted that many smaller operators will face a significant burden due to Zimbabwe’s VAT policy. For operators already working with thin margins, the new VAT structure could lead to business closures or reduced service offerings, ultimately affecting Zimbabwe’s overall tourism infrastructure and competitiveness.

Government’s Response: A Call for Transitional Measures
The Zimbabwe Tourism Business Council, along with industry stakeholders, has appealed to the government for transitional measures to help mitigate the impact of the VAT changes. Specifically, they have requested a 12-month grace period or a phased implementation of the VAT increase to allow existing contracts to be honored and for operators to adjust their pricing structures without suffering financial losses.

Clive Chinwada, president of the Tourism Business Council of Zimbabwe, emphasized the need for a transition period to avoid destabilizing the tourism sector and to protect Zimbabwe’s reputation as a competitive destination. The concern is not with the principle of the VAT increase itself but with its sudden implementation, which creates uncertainty and financial strain for operators who had already committed to fixed prices.

Zimbabwe’s Forbes Recognition and the Potential Fallout
Zimbabwe’s recognition by Forbes as the best country to visit in 2025 sparked a surge in international interest, with travel searches to Bulawayo and Harare rising significantly. The government’s investment in infrastructure and marketing campaigns had begun to pay off, and the country’s tourism was on an upward trajectory. However, the timing of the VAT policy change has raised concerns about potentially losing the momentum generated by the Forbes recognition.

Travel agents and operators fear that the unexpected VAT hike could derail Zimbabwe’s growing appeal in international markets, particularly among European, North American, and regional travelers. The 15.5% tax increase may not only make Zimbabwe less competitive but also harm its reputation as a value-for-money destination, especially when compared to neighboring countries with stable tax regimes.

Looking Forward: Can Zimbabwe Maintain Tourism Growth?
Zimbabwe’s tourism industry is at a critical crossroads. The VAT increase, though a necessary move from a government revenue perspective, presents significant challenges for operators already working in a competitive and uncertain global tourism environment. As the country moves forward, it is crucial that both the government and the tourism sector work together to find solutions that balance the need for revenue generation with the need to maintain Zimbabwe’s attractiveness as a destination.