Zimbabwe: Safari Operators, ZTA End Court Feud
Ndamu Sandu
29 August 2009



SAFARI operators have withdrawn their appeal at the Supreme Court against the Zimbabwe Tourism Authority (ZTA) after the tourism promotion body said it will drop its demands for a backdated payment of trophy fees from operators.

Safari Operators Association of Zimbabwe (SOAZ) and ZTA have been haggling over a 2% levy on trophy fees, which saw the matter spilling into the courts.

Last month, High Court judge Justice Bharat Patel ruled that in terms of the tourism law, safari operators were liable to pay levy on trophy fees paid by hunters in designated tourist facilities.

Patel ruled that trophies were clearly an intrinsic and inseparable part of the hunting services or facility provided by operators.

Operators immediately launched an appeal in the Supreme Court.

Zimbabwe Council for Tourism president, Emmanuel Fundira, who is also SOAZ vice- chairman, confirmed that the operators had withdrawn their appeal.

"We have officially withdrawn the matter from the Supreme Court. We think government is keen to see a positive development to the tourism industry," Fundira said.

ZTA boss Karikoga Kaseke told Standardbusiness the authority had agreed not to back date the fees.

"When we won the case at the High Court we wrote to operators that they should pay their levies beginning August," he said.

Kaseke said ZTA had given safari operators up to September 30 to register with the authority.

Most safari operators were doing business illegally as they had not registered with the authority due to the stand-off over trophy fees.

The withdrawal of the appeal by SOAZ and the stance by ZTA will end the acrimony that had soured the relationship between the two organisations for the past four years.

In addition, it means that SOAZ members can now register with the authority and enjoy the fiscal incentives offered to the tourism industry in May.

The fence-mending between SOAZ and ZTA is a welcome development to the tourism sector which had endured years of infighting amongst players.

Unlicensed operators cannot import tourism products duty free according to fiscal incentives availed to the tourism industry in April.

Statutory Instrument 46 of 2009 provides the terms and conditions under which the Zimbabwe Revenue Authority (Zimra) may grant suspension of duty on specified types of motor vehicles for licensed tourism operators.

The suspension became effective on March 1 and will run up to February 28, 2011.

Under Statutory 60 of 2009, ZIMRA may grant rebate of duty on new capital equipment, boat equipment and other goods taken out of bond for the tourism sector.

To qualify for rebate, the capital equipment must be used for expansion, modernization and renovation of hotels and restaurants.

Beneficiaries of the facility should be registered with ZTA.

The safari industry is marketed in three distinct forms which include attendance at internationally organised marketing shows, public auctions and repeat business.

Repeat business occurs when clients who have been to a particular destination can come back or refer other potential clients.

There are 87 safari operators in Zimbabwe.


In another plus for the tourism industry, Fundira and Kaseke -- bitter foes for the past four years -- last week agreed to end their differences which they say was affecting the growth of the sector.

So acrimonious was the relationship between the two that they almost came to blows at a Sports, Tourism Image and Communication task force meeting at Bronte Hotel nearly two weeks ago. The duo had to be restrained by Sylvester Maunganidze, the principal director in the Ministry of Media, Information and Publicity.

Before that Kaseke was accused of causing the arrest of Fundira and ZTA chairman, Shingi Munyeza because of differences between the ZTA and tourism operators.

Most of the operators have been collecting the 2% on trophy fees (in addition to daily rates) all along .. and pocketing it, if I read this correctly.

There is however a real issue in that the 2% is being collected by the safari operators, and then levied a second time by the taxidermists who state they have to pay the levy to Parks to get the export permits. What has happened to that?