Zimbabwe’s tourism sector is to be protected from foreign exchange losses incurred as a result of trading in the Rand.
The country’s Tourism Minister, Walter Mzembi (pictured), has also secured a commitment from the Central Bank governor that 15% VAT on accommodation will be waived on foreign bookings if hoteliers agree to transact in the Rand.
The currency has been a legal tender in Zimbabwe since 2009.
However, the market has largely rejected it because of its depreciation in value against the US Dollar.
South Africans make the majority of tourists in Zimbabwe.
“We also agreed that going forward, cover for any exchange losses between the Rand and the US Dollar by the tourism sector. So in other words when you transact on a daily basis, you sell your Rands to the Reserve Bank at an agreed exchange motivating rate, so please accept the Rand, accept that market we will cover the losses,” explains Mzembi.