Tourism plays a vital role
in the economic development of both developed and developing countries, serving
as a significant driver of growth. In Zimbabwe, tourism is one of the
fastest-growing sectors after mining and agriculture. To capitalize on this potential,
investments are sought in various tourism sub-sectors, including accommodation,
conference facilities, restaurants, theme parks, and other tourism facilities.
The Zimbabwean government have created an enabling environment to boost tourism
revenue as it is key to the development of the country. This was done through
providing incentives such as duty rebates, tax breaks, and tax exemptions in
designated Tourism Development Zones to support investors. These efforts aim to
diversify the tourism product base, enhance competitiveness, and attract more
visitors. This study sought to analyse the contribution of tourism revenue
towards economic growth. The research employed a quantitative approach,
utilizing secondary data and time-series analysis through Simple Linear
Regression Model and ordinary least squares. Findings revealed a positive
correlation between tourism revenue, trade openness, and government
expenditure, while inflation exhibited a negative impact. This indicates that
tourism revenue significantly contributes to economic growth. The findings of the research
will inform policy decisions and strategies aimed at enhancing the tourism
sector’s contribution to Zimbabwe’s economic growth. By prioritizing tourism
development, Zimbabwe can unlock its full potential and reap the benefits of
this vital sector.
