The Crisis in Zimbabwe’s Tourism Sector
Zimbabwe’s tourism industry, a key component of the nation’s recovery strategy, is facing a significant crisis. According to a confidential report from the Tourism Business Council of Zimbabwe (TBCZ), the sector is losing hundreds of millions of United States dollars annually due to leaks in the airline ticketing system. This issue has been brought to light through a submission to the government, highlighting the urgent need for regulatory reform.
The TBCZ report reveals that a staggering 72% of travel agencies in Zimbabwe operate outside the Billing and Settlement Plan (BSP), the international platform for airline payments. This lack of compliance leads to several negative outcomes, including loss of revenue, reduced tax collection, and distorted market data.
Impact on Revenue and Market Integrity
One of the primary concerns is the loss of foreign currency. Unregistered or foreign travel agencies are siphoning off significant amounts of money from the country, which could otherwise support local businesses and stabilize the economy. The Zimbabwe Revenue Authority (Zimra) is also suffering as a result, losing substantial tax revenue.
According to the report, the Zimbabwe BSP system recorded $78.6 million in gross airline sales between January and August 2025, with over 86% of transactions paid in cash. However, insiders suggest that the actual market size is nearly double this figure when offshore ticketing is considered. By routing transactions through foreign BSPs, agents are effectively externalizing millions that should be circulating within the local economy.
This practice not only drains liquidity but also deprives local firms of commission income and masks the true demand for air travel in Zimbabwe. As a result, the country appears less attractive to airlines and investors, who rely heavily on BSP data to assess route profitability.
Regulatory Challenges and Industry Concerns
The report highlights the challenges posed by the current regulatory environment. There are over 200 registered travel agents in Zimbabwe, but more than 100 unregistered operators are also active in the market. Only 85 of these are BSP-registered, representing just 28.3% of the total. This lack of oversight creates an uneven playing field, where compliant agents are at a disadvantage compared to those operating outside the system.
Industry executives warn that these issues are undermining the fragile recovery of the aviation sector. Flights in the first quarter of 2025 dropped by 42%, passenger traffic fell nearly 20%, and air-freight volumes declined by 38.8%. These figures underscore the need for urgent action to prevent further damage to the sector.
Calls for Regulatory Reform
The TBCZ report calls for stronger regulatory measures to address the current loopholes. It criticizes local regulators for their inaction, noting that other African countries have already taken decisive steps against similar practices. For example, in one West African jurisdiction, authorities froze multiple travel agency accounts and placed them under judicial control after uncovering large-scale tax fraud and money laundering.
Such actions demonstrate that coordinated inter-agency efforts can help stop revenue leakages, protect compliant operators, and restore market integrity. The TBCZ urges the government to take similar measures to safeguard the tourism sector and ensure its long-term recovery.
Conclusion
The situation in Zimbabwe’s tourism industry is dire, with significant financial losses and regulatory challenges threatening its recovery. Addressing these issues requires a comprehensive approach that includes stricter enforcement of existing regulations, increased transparency in the ticketing system, and collaboration between government agencies and industry stakeholders. Without such measures, the sector risks falling further behind its regional peers and failing to achieve its full potential.