Zimbabwe tourism loses millions in airline ticketing scandals

Zimbabwe's tourism industry is losing hundreds of millions of United States dollars annually through massive leakages in airline ticket sales, according to a confidential Tourism Business Council of Zimbabwe (TBCZ) report submitted to government.

The report, seen by businessdigest, exposes a shadowy ticketing system in which about 72% of travel agencies operate outside the Billing and Settlement Plan (BSP) - the internationally approved platform for airline payments.

As a result, the country is reportedly forfeiting large sums to foreign-based or unregistered travel agents, depriving the Zimbabwe Revenue Authority (Zimra) of tax revenue and airlines of accurate market data - while simultaneously undermining efforts to rebuild the tourism sector.

"An increasing number of foreign-based travel agents are conducting business in Zimbabwe while processing ticket sales in other jurisdictions," the TBCZ said.

Payments are often collected locally in US dollar cash, but ticketing is executed through BSP systems in countries such as Zambia or Malawi, the report notes. This practice diverts foreign currency circulation away from Zimbabwe's financial system, erodes tax collections, and distorts key tourism and aviation metrics.

Between January and August 2025, Zimbabwe's BSP system recorded US$78,6 million in gross airline sales - 86% of which were paid in cash. However, industry insiders say the true market value could be nearly double once offshore transactions are included.

By routing payments through foreign BSPs, agents are externalising millions that should circulate domestically, draining liquidity and masking Zimbabwe's real air travel demand.

TBCZ data shows that only 85 of Zimbabwe's 300 travel agents are BSP-registered - just 28% compliance.

"Because airlines and investors rely heavily on BSP data to gauge route profitability, the understatement of Zimbabwe's market makes the country appear smaller and riskier than regional peers," an aviation analyst noted. "This deters new entrants and weakens connectivity."

The warning comes amid a steep downturn in aviation activity.
Flights in the first quarter of 2025 fell 42% - from 19,588 to 11,376 - while passenger traffic dropped nearly 20% and air-freight volumes declined by 38.8%.

Industry executives warn that inaccurate data and unregulated practices could delay Zimbabwe's recovery to pre-pandemic levels.

The TBCZ report also highlights widespread regulatory violations. Some operators register locally only in name, running core operations abroad; others hire foreign staff without permits, process sales through offshore servers, or offer "no service fee" cash deals that undercut compliant agents.

The council accuses local regulators of inertia, contrasting Zimbabwe's response with firmer enforcement elsewhere on the continent.

"In one West African jurisdiction," TBCZ noted, "authorities froze multiple travel agency accounts and placed them under judicial control after uncovering large-scale tax fraud and money laundering. With coordinated inter-agency action, Zimbabwe can do the same - stop leakages, protect compliant operators, and restore market integrity."

The dossier has been submitted to Finance Minister Mthuli Ncube as part of pre-budget consultations, urging tighter regulation of the aviation ticketing ecosystem to safeguard national revenues and support the country's tourism recovery roadmap.