HOSPITALITY concern, Victoria Falls Safari Collection (VFSC) will absorb the 0,5 percentage-point value-added tax (VAT) increase to 15,5% on accommodation, but pass it on to tourism activities, transfers and food and beverages pricing, NewsDay Business understands.
VFSC is a major tourism player in Victoria Falls and owns four properties, that is Victoria Falls Safari Lodge, Victoria Falls Safari Club, Victoria Falls Suites and Lokuthula Lodges.
The changes to its pricing for its packages come after the 2026 national budget raised VAT to 15,5%, from 15%, which has received major backlash across all business industries.
“Further to our previous communication regarding the value-added tax (VAT) changes announced in the 2026 national budget on November 27, 2025, we would like to provide clarity on how the newly introduced 15,5% VAT affects tourism activities and transfers in Zimbabwe with effect from January 1, 2026,” VFSC said in an email to stakeholders.
“With effect from January 1, 2026, tourism accommodation supplied by Zimbabwe Tourism Operators is charged at a VAT rate of 15,5%, reflecting an increase of 0,5%.
“As advised in our communication of 16 December 2025, the Victoria Falls Safari Collection will absorb this 0,5% increase on accommodation rates, and there will be no changes to 2026 accommodation rates already issued to the trade.”
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In December 2025, the Tourism Business Council of Zimbabwe (TBCZ) warned that the proposed VAT increase would push up prices and weaken the sector’s competitiveness just as the industry seeks to capitalise on renewed interest in visiting the country.
The interest comes after Zimbabwe was named the world’s best country to visit in 2025 by Forbes, a highly influential American business magazine and digital media company.
“While it has been feasible for us to absorb the 0,5% VAT increase on pre-agreed accommodation rates, it is unfortunately not possible to absorb a 15,5% increase on activities and transfer services that were previously zero-rated,” VFSC said.
In that regard, VFSC announced several changes to its tourism activities and transfers, food and beverage pricing, and package offerings.
“Tourism activities and transfers, which were previously zero-rated, are now standard-rated and attract VAT at 15,5% from January 1, 2026. This represents a full increase of 15,5%,” VFSC said.
“As a result, our Activities Desk will charge VAT at 15,5% on the total activity cost from January 1, 2026 for any activities booked with our team there.
“All food and beverage pricing will include VAT at the new rate of 15,5% with effect from January 1, 2026.”
On packages, VFSC said: “For any packages, Super Deals and contracted rates that include any activities or transfers issued to the trade before December 31, 2025, we regret that we are unable to absorb the newly introduced 15,5% VAT on the activity or transfer component.
“This additional VAT will therefore be added to the relevant packages, Super Deals and contracted rates.”
The government is currently projecting 947 103 and 1,87 million arrivals this year in terms of domestic and international tourists, respectively, up from last year’s projected 945 213 and 1,79 million.
Hence, the VAT changes at one of the major hospitality companies in Victoria Falls, the nation’s number one tourist destination, threaten to impede that growth as predicated by TBCZ.