BY NOKUTHABA DLAMINI
Finance minister Mthuli Ncube allocated $3.7 billion in the 2022 national budget to the Tourism and Environment ministry unveiled on Thursday as Zimbabwe plots the revival of the tourism industry, which has suffered the brunt of the Covid-19 pandemic.
In his proposed $927.3 billion budget statement, Ncube said the Tourism Revolving Fund would be crucial in the revival of the industry.
The Fund was set up last year at the height of the Covid-19 lockdowns, but most tourism players say they are yet to benefit.
Ncube expressed optimism that Zimbabwe’s tourism industry was on a recovery path.
“In 2022, the sector is expected to register higher recovery levels with growth projected at 18.8 percent, mainly driven by full resumption of domestic and international travel, removal of the country from the red list, resumption of flights into Harare by major airlines and government incentives that will facilitate investment,” Ncube said.
“Furthermore, enhanced destination marketing, through improved marketing programmes and market representation to generate demand in traditional and emerging source markets that show early recovery such as the Middle East, Asia, Eastern Europe would be prioritised,
“In addition, the establishment of the Tourism Revolving Fund will be expedited and therefore, the 2022 national budget has allocated $3.7 billion to the Ministry of Environment, Climate, Tourism and Hospitality Industry for the above programmes and activities.”
Ncube said tourism was expected to recover by 6.7 percent in 2021 with room occupancy rates anticipated to reach 22 percent while bed occupancy is expected to increase by 16 percent by the end of 2021.
The growth, he said, would be mainly driven by domestic tourism following the relaxation of Covid-19 travel restrictions, increased vaccination rates and promotional activities.
He also allocated $54.2 billion to support climate change related programmes and projects.
“As such, the 2022 national budget will fund projects and programmes that mainstream climate change action in order to realise the revised nationally determined contribution (NDC) already submitted to the United Nations Framework Convention on Climate Change (UNFCCC) in
2021,” Ncube said.
Meanwhile, Ncube said the government has commenced the procurement of five weather radars valued at US$6.1 million, of which US$4.2 million has already been paid.
He said factory inspections and training of engineers has been scheduled for December this year paving way for delivery of three radars during the first quarter of 2022.
“The 2022 national budget is, therefore, setting aside $155 million to pay for the outstanding balance,” he said.
“The Development Projects Management Information System currently under development will further reinforce tracking of climate finance inflows through capturing of all climate finance related projects and programmes.”
Ncube added: “The recurrence of droughts, floods and cyclones point to the urgent need for early warning systems among other critical interventions required to reduce vulnerabilities to extreme weather conditions in light of climate change.
“This is also important for agriculture planning and aviation purposes”.
He also set aside $240 million for rehabilitation and upgrading of meteorological stations’ infrastructure and airports targeting Victoria Falls, Bulawayo and Harare.