Tuesday, June 18, 2024

Livingstone Tourism Board welcomes calls to declare Livingstone tax free zone



Economists have welcomed the call on government by Livingstone Tourism Board (LTB) to declare Livingstone a tax free economic zone to boost tourism and economic growth.

Financial Market Analyst Maambo Hamaundu indicated to ZANIS in an interview in Lusaka yesterday that the idea is good and if implemented could help increase tourist arrivals in Livingstone.

He added that the move will also improve on revenue and also add to the Gross Domestic Product (GDP) of the country.

Mr. Hamaundu further said that if followed through, the sector can also contribute to job creation and collection of indirect taxes that can be beneficial to the country in various ways.

However, Mr. Hamaundu observed that despite the idea being good, the timing may not be conducive as government is trying to find ways of increasing tax collection.

Meanwhile, renowned economist Herryman Moono noted that the call has come due to a realisation of Livingstone’s potential to generate revenue from tourism by the Livingstone Tourism Board.

Mr. Moono noted that if justified, the idea would likely attract a lot of investment that would improve infrastructure for tourism in Livingstone as the state of infrastructure is currently poor.

He added that it could also be another way of increasing tourism infrastructure and also create direct incentives to enhance tourism.

Recently, Livingstone Tourism Board Chairperson Alexander Munthali urged government to consider declaring Livingstone a tax free economic zone to boost tourism and economic growth.

Mr. Munthali stated that Livingstone stands to attract investors and create employment opportunities once the area is declared a tax free economic zone through provision of tax incentives and tax holidays to potential investors.


  1. Wow ! what an excellent idea. Its time to invest in Livingstone , make money and let those barking about Lungu and HH Continue languishing in poverty .After visiting so many tourism destinations in Africa , it has for so many years been paining me and always questioned if our leaders fully understood tourism .I have always given credit to Zimbabwe , south Africa and Namibia .I guess I now need to give credit to my own country. Next we need to ask south Africa to stop lying that Victoria falls is in South Africa. Credit to the government for this move and hope they consider zero rating vat on accommodation or reduce it to say 7%


  3. Wow…Livingston but I would prefer reducing the rates than cutting it off completely as it will affect the country somehow

  4. The tourism sector plays a vital role an economy and is at the heart of a strategy of promoting economic recovery and growth. The total contribution of a sector can be estimated at over 10% of its GDP and tourist arrivals are projected to grow at almost 2% per annum over the next few years, and can reach 557 million by 2030. Achieving this growth in an increasingly competitive international market will require a supportive regulatory environment, and taxation is a core component of this. Taxation affects the competitiveness of a sector through the costs borne by firms such as accommodation providers and travel agents and tour operators, and through the prices faced by tourists, who are increasingly able to compare prices and quality from the comfort of their living rooms. This increased…

  5. This increased consumer awareness and price sensitivity puts pressure on competing tourism destinations to ensure that prices are competitive and that their offering to tourists is of the highest standard. Of course, taxation plays two roles and it is important not to lose sight of both in any discussion of the impact of taxes on the competitiveness of the tourism sector. While on the one hand taxes directly impact the margins made by businesses and the prices faced by tourists, on the other hand they are an important source of government revenue, which in turn is used to finance the building and maintenance of tourism infrastructure (e.g. airports, roads), ensure the safety and security of tourists, maintain tourist attractions and landmarks, and provide other services essential to a…

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