TDZs: A Win-Win for Tourism and Local Communities

Zimbabwe has a lot to offer visitors, including stunning scenery, diverse wildlife, and a rich cultural heritage. With its tourism industry on the rise, Zimbabwe is a great destination for travellers looking for an exciting and authentic African experience.

In 2016, Rangarirai Muzapu and Mavis Sibanda published a paper titled Tourism Development Strategies in Zimbabwe in which they encouraged the Government to establish Tourism Development Zones (TDZs). The Zimbabwe Tourism Authority (ZTA) recognises the potential of Tourism Development Zones (TDZs) to contribute to the growth of the tourism industry in Zimbabwe, as outlined in its 2023 Zimbabwe Tourism Investors Prospectus. Here we publish an extract from the ZTA prospectus:

The Tourism Development Zones (TDZ) concept is provided for in the Tourism Act (Chapter 14:20) where the Minister responsible for Tourism can designate an area or site as a TDZ. The major objective is to promote tourism development and ultimately economic development in areas with high potential in tourism but which have remained underdeveloped. To date having assessed the tourism potential of certain areas/ regions in the country, the following areas having been designated as TDZs;

• Beitbridge Gwanda Shashe Limpopo
• Chiredzi-Gonarezhou
• Eastern Highlands
• Kariba & Zambezi Valley
• Lake Chivero & Manyame
• Masvingo Great Zimbabwe
• Matopos
• Mudzi
• The Midlands

TDZ Investment Incentives

Government through the Ministry of Finance has provided the following incentives for investors in the TDZs.

• Taxable income of an operator in a Tourism Development Zone, Finance Act No. 27 of 2002;
• First 5 years of operation……………….0%
• Second 5 years of
• operation…………15%
• Third 5 years of
• operation……………..20%
• Thereafter, normal rates of corporate tax will apply.
• Duty rebate on capital goods imported for use in the TDZ, Statutory Instrument 50 of 2006.

This is provided for under Statutory Instrument 50 of 2006 where any tourism company or organization, in a TDZ, wishing to claim a rebate of duty should produce to the Customs Commissioner, a valid importer’s license issued by the Zimbabwe Tourism Authority and particulars of the specific equipment or machinery which it desires to import under rebate.

The following are incentives that have been provided by Local Authorities of the TDZs:

• Land available for development at concessionary rates.
• Proponents have liberty to come up with proposal of sites and tourist activities to be carried out. All those developing within the TDZ will not pay for the use of natural resources like pit-sand, river – sand and stones within the district. The council will offer facilitation to investors in the TDZ especially with respect to the provision of electricity and water.
• No payment of lease, levy and license fees for a period of 5 years for developing chalets and 7 years for developing lodges.
• Free use of raw materials such as river sand, pit sand and stones.
• Royalties—for the first 2 years during initial

• Leases and trading licenses Rates

Over and above the incentives given by Central Government, some of the local authorities in an effort to compete for and attract investment into their areas have provided their own local level incentives.

• First 2 years of operation …………………………………0%
• Second 2 years of operation ……………………….15%
• Third 2 years of operation …………………………….20%
• Thereafter normal rates will apply

The respective local authorities may help in the identification of sites for the development of tourism

facilities including hotels, lodges, chalets, camps. Accordingly, inquiries regarding investment sites may be lodged with the respective local authorities

Text by Perry Kaande

From DESTINATION ZW EDITION 6