Mozambique: Tourism levy will enable investment in sector

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Mozambique: Tourism levy will enable investment in sector

8:17 CAT | 13 Oct 2025

File photo: O País

The Government of Mozambique intends to introduce a tourism levy, to be paid through accommodation, to promote investment in the sector and double the flow of foreign tourists, as provided for in the Economic Recovery and Growth Plan (PRECE).

The aim is “to introduce a tourism tax levied on the cost of accommodation to strengthen the tourism sector and enable it to play its role in job creation”, reads the document accessed by Lusa today.

The goal is “to strengthen the tourism sector and enable it to play its role in job creation” by “introducing a tourism tax levied on the cost of accommodation”.

Although no specific amounts are mentioned, the document states that revenue from this levy will be used “to increase the marketing of Mozambican tourism products”, helping to promote “Mozambique as a tourist destination”.

“The data show that the investment made for this activity through the State Budget, estimated at US$350,000 annually, is very little, particularly when compared with the main destinations in the region,” the document reads, noting that neighbouring South Africa invests US$60 million.

“The objective of this marketing will be to double the flow of foreign tourists,” it adds, noting that this growth will represent “opportunities for the entire economy” and will raise tourism’s direct contribution to gross domestic product from the current 1.1% to 5%.

It will also allow “investment in improving tourism services through training and the creation of standards”, as well as facilitating financing for Mozambican tourism operators, and “improving strategic tourism infrastructure and diversifying Mozambican tourism products.”

“With this, Mozambique will be able to increase the benefits of tourist flows, raising the current retention per tourist from US$125 to US$500, and increase total tourism revenue from foreign tourists from the current US$62.5 million per year to US$500 million per year,” the document states.

According to the document, “the impact of this progress will be significant, both on tax revenues and on employment and the added value of products and services”.

Source: Lusa