- Indecisiveness in govt impedes industry growth
- Import ban hits hard on the industry
- Delayed concession lease renewals ignite uncertainty
Lilly Rakorong, Chief Executive of the Hospitality and Tourism Association of Botswana (HATAB), has expressed industry players’ frustration with ongoing uncertainty, which has led to delayed renewals of concession leases and a lack of substantial appointments in key positions at the tourism ministry. This uncertainty is fueling investor skepticism and hindering progress in the sector.
Rakorong was addressing business scribes in Gaborone this week, where the agenda was to provide industry updates.
Leadership Vacuum in the Tourism Sector
“We welcome the appointment of the new Minister. We hope with his new leadership we will see the appointment of substantive key executives,” Rakorong said.
President Mokgweetsi Masisi appointed Dumezweni Mthimkhulu as the new Minister of Environment and Tourism in the latest cabinet reshuffle announced last month. Mthimkhulu takes over from Philda Nani Kereng who has been designated by the President as Botswana’s High Commissioner to Nigeria.
As she welcomes the new Minister, Rakorong is anxious about frequent changes in the ministry.
“When we try to get used to working with a Minister, or Director, a reshuffle happens and we are introduced to a new point of authority,” she said.
Rakorong added that to make matters worse, there are also similar changes in the position of Permanent Secretary (PS).
“As we speak, we are currently working with an Acting Permanent Secretary. Boatametse Modukanele was appointed interim Permanent Secretary in the Ministry of Environment and Tourism on the 1st of March 2024. As the technocrat in the Ministry, Modukanele plays a pivotal role in the formulation of policies that govern the tourism industry,” she said.
She acknowledges the need for a substantive officer to implement some of the policies and Acts at government level.
Frustration is also reflected at the Botswana Tourism Organisation (BTO) which has seen three Acting CEOs over a period of three years.
The BTO is a corporate body established through an Act of Parliament with a broad mandate which includes marketing and promoting Botswana’s tourism.
“With only an Acting CEO, the decision-making process is slow, and powers are limited,” Rakorong said, explaining how the absence of a substantive CEO at BTO hampers efficiency.
Following the departure of the last substantive CEO from BTO in early 2021, Tshoganetso Carl-Ponoesele assumed the role of Acting CEO from September 2021 until May 2023. Currently, Keitumetse Setlang, a communications expert, serves as the Acting CEO of BTO.
At the departmental director level within the Ministry, several key positions are being filled on an acting basis. Specifically, Khulekani Mpofu is currently serving as the Acting Director of the Department of Tourism. This department holds significant importance within the Ministry of Environment and Tourism as it is responsible for regulating and licensing various aspects of the tourism industry.
In the Department of Wildlife and National Parks, Maipelo Mojalemotho currently serves as the Acting Director, overseeing matters related to wildlife conservation and national parks management. Additionally, Oarabile Serumola holds the role of Acting Director in the Department of Waste Management and Sanitation, responsible for overseeing waste management initiatives and sanitation efforts.
Meanwhile, within the Department of Environmental Affairs, Charles Mojalemotho has assumed the role of Acting Director. This department plays a crucial role in safeguarding and conserving the environment, with responsibilities spanning various environmental protection and conservation efforts.
Delayed Leases
Rakorong echoed concerns about several high-end tour operators in the Okavango Delta who have been operating for years with expired concession leases.
“Some have gone for five years now, and no one knows if the leases will be renewed or not. Some operators have applied for new leases, and it has been years now with no responses,” she said, adding that for those with luck, leases have been renewed, albeit for two or three years.
Her concern however is the fact that the Camps and Lodges business in the delta requires heavy investment.
“When investors make a crucial business decision, they consider the business climate and other factors that may result in them being reluctant to invest. And while this happens, it slows down the tourism sector development,” she advised.
As a result of government’s indecisiveness regarding renewing leases, some tourism businesses operating in the prime areas of the Okavango Delta and Chobe areas face uncertainty owing to delays in renewing leases for concessions they have been operating for years.
There could be dire consequences as tour operators fear that if the situation continues some of the tourism investors who have been operating in Botswana for years will not have any other option but to leave Botswana and invest elsewhere. They also worry that if tourism investors opt for other countries, it might affect tourism sector development.
Operators also said delayed lease renewals for tourism concessions is bad and there is reasonable suspicion that some of them will not be renewed at all.
The situation started to have an impact during COVID-19 when some of the businesses wanted to access funds from financial institutions but were unable to because of the unavailability of signed leases.
Rakorong pleaded with government to protect tourism investors who have been operating in Botswana for decades, especially in the Okavango Delta and Chobe areas, and to also be apt in making key industry decisions.
Import ban hits the tourism industry
Rakorong also expressed concerns about how the vegetable import ban is hindering the hospitality industry’s ability to provide the best service to its clients.
She is particularly worried about the expansion of the import ban list, which now includes items beyond vegetables, such as meat, including pork ribs and pastries.
Government said the ban is to promote self-sufficiency.
Rakorong does not oppose those aspirations but questioned the lack of planning so that the policy did not impact hospitality operators or consumers in terms of skyrocketing prices. She said there was an agreement at a High-Level Consultative Council (HLCC) that the government would consult the private sector before making key decisions. Further, there was also an agreement that an impact assessment survey would be conducted to determine the true value of the import ban.
“Government does not consult the private sector in any of these matters. Further, even the impact assessment study is not available,” she stated. Banning importation in a quest to promote self-sufficiency is a welcome demand to Rakorong and the hospitality sector.
“What we propose is that importation be banned only when there is enough local production to meet demand. When production is low, there must be a way to supplement supply,” she explained.
Tourism in Botswana is a significant sector of the economy, contributing to job creation and economic growth.
In 2021, A total of 543, 939 non-citizens arrived in Botswana. Out of these 337, 626 (62.1 percent) were international visitors. Overnight visitors accounted for 92.9 percent of total visitors, while same-day visitors made up 7.1 percent of total visitors.
Tourists who came for business accounted for 35.5 percent, while those who were In – Transit and Visiting Friends and Relatives represented 32.2 percent and 14.9 percent.
Tourists who visited for holidays or leisure purposes accounted for 13.8 percent of the total tourist arrivals.
