Economy

Tourism Council warns against splitting Hospitality Act, cites cost implications for businesses (Video)

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The Tourism Council of Zambia (TCZ) has raised concerns over government’s proposal to split the Hospitality Act into three separate bills, arguing that it would increase the cost of doing business in the sector.

Government has proposed dividing the Hospitality Act into the Tourism and Hospitality (Amendment) Bill 2024, the Travel and Hospitality Professions’ Association of Zambia Bill 2024 and the Zambia Travel and Tourism Agency Bill 2024.

TCZ Chairperson, Yusuf Zumla, speaking at a media briefing in Lusaka on Thursday, warned that the introduction of multiple bills would create a complex regulatory environment for tourism stakeholders.

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“Each bill introduces unique compliance requirements, leading to increased administrative burdens for lodges, hotels, travel agencies and other tourism businesses,” Zumla stated.

He stated that such complexity could hinder business growth, particularly as new regulations often come with additional costs for businesses, including registration fees, training expenses and compliance with new standards.

“These additional costs, especially for an industry still recovering from the pandemic, could be particularly burdensome,” he added.

Read More: Govt repealing key tourism laws to boost sector growth — Sikumba

Zumla also expressed concerns about the potential for fragmented efforts and resource allocation across the three bills, which could delay the intended benefits, such as streamlined operations and enhanced professional standards.

“Multiple regulatory frameworks can lead to confusion among stakeholders and discourage investment and innovation in the sector,” Zumla noted, adding that increased operational costs could hurt Zambia’s competitiveness in global tourism rankings.

He recommended consolidating the three proposed bills into a single legislative framework to reduce regulatory complexity and administrative burdens, ultimately enhancing Zambia’s attractiveness as a tourism destination.

“By simplifying the regulatory process, we can improve Zambia’s standing in global competitiveness rankings,” Zumla concluded.

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