Tourism positioned as growth driver, but industry calls for policy reforms

Tourism is demonstrating its capacity to mobilise private investment and create jobs, Finance Minister and Vice President Ndaba Gaolathe said in his recent budget speech, positioning the sector as a key driver of economic diversification under the Botswana Economic Transformation Programme (BETP). Gaolathe said that during the 2025/2026 financial year, government facilitated the allocation of five tourism sites and concession areas in Ngamiland and the Makgadikgadi National Park, attracting envisaged capital investment of P362 million. The projects are expected to create more than 500 jobs and generate rentals for community trusts, strengthening local economies. “In addition, the fast-tracking of eleven lease renewals covering 27 lodges in Ngamiland has unlocked further investment potential estimated at P800 million, while safeguarding more than 1,500 existing jobs,” Gaolathe said. “These developments underscore tourism’s growing role as a driver of employment, citizen participation, and private-sector-led economic diversification.” Under the BETP, tourism is being repositioned as a catalytic, investment-led sector through a pipeline of 21 high-impact projects aimed at diversifying products, deepening value chains and expanding employment. Collectively, the projects are designed to increase visitor numbers, raise per-visitor spend, stimulate private capital investment and create jobs across hospitality, construction, transport, creative industries and services. Tourism currently contributes about 5 percent to GDP and is projected to grow to 11.6 percent by 2030. However, industry players say policy and regulatory constraints could limit the sector’s ability to fully realise that growth. In an interview with the Business Weekly & Review, Hospitality and Tourism Association of Botswana (HATAB) Policy Advocacy and Membership Manager Dichaba Molobe said while government policy is focused on sustainability and long-term vision, it is not flexible enough to respond swiftly to market demands. Though he acknowledged Botswana’s progress in positioning tourism as a driver of economic diversification, Molobe said operators face challenges, including access to financing, skills development and the slow pace of policy implementation in areas such as Meetings, Incentives, Conferences and Exhibitions (MICE) tourism and SME support. Molobe said current policies emphasise sustainability and community empowerment, but financing reforms and workforce development will be critical to unlocking faster growth and maximising the sector’s economic contribution. He added that Botswana has untapped tourism potential beyond the northern circuit. “Policy reforms that incentivise regional investment, simplify licensing, and support SMEs could unlock growth in Makgadikgadi, Kgalagadi, and Francistown, complementing the country’s established safari destination,” he said. HATAB has called for a balance in regulatory costs and compliance requirements to ensure the sustainability of small and medium enterprises. “While regulation is necessary for public health and safety, the burden needs to be balanced so that it doesn’t slow down SMEs,” Molobe said. The association has proposed a mix of fee reforms, simplified compliance and targeted SME support to lower the cost of doing business. “These changes would not only ease the burden on operators but also unlock faster growth and ensure tourism delivers its full potential under the BETP,” he said. Molobe stressed that sustainable employment depends on policies that promote linkages, invest in skills, empower SMEs and diversify products. “If these elements are prioritised, tourism growth will translate into long-term, inclusive jobs for Batswana,” he said. According to 2024 employment figures from Statistics Botswana, 50,535 people were employed in tourism-related industries, accounting for 6.7 percent of the country’s 754,147 labour force. HATAB has also urged the government to recalibrate tourism skills development policies to deliver practical, accessible and industry-specific training. “While Botswana’s tourism skills-development policies are strong in vision and partnerships, they need tweaking to deliver practical, accessible, and industry-specific training,” Molobe said. “Without that, the sector risks falling short of its potential under the BETP.” The association further called for closing data gaps that limit evidence-based policymaking. While headline statistics on arrivals and conservation are available, Molobe said gaps in data on spending, SME performance, workforce skills and regional flows constrain effective planning. “Closing these gaps would allow government and operators to align strategies more effectively and unlock faster growth,” he said. An industry expert also cited land leasing challenges as a key bottleneck. “Investors need certainty regarding who has the authority to issue the leases and assurances that lease terms are standardised or guaranteed, including protections against revocation without compensation,” he said. He cautioned that issuing too many leases in high-value areas could erode the exclusivity that underpins Botswana’s premium tourism model, though he noted there are underdeveloped sites that could broaden the country’s market reach. He recommended increased marketing of nontraditional destinations such as Tsodilo, Gcwihaba Caves, the Pans and the Okavango Panhandle to attract visitors who may not afford luxury lodges in the delta. On financial leakages, the expert said commissions paid to external booking agents remain a concern, suggesting that a stronger presence by the Botswana Tourism Organisation in key source markets could reduce reliance on such intermediaries. Regarding profit repatriation, he noted that in the absence of exchange controls, offshore parent companies are free to move funds. “I’m not sure how you would stop this, unless you reserve certain activities for citizen participation or set a minimum participation level. But that could also deter investors,” he said.

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Tourism positioned as growth driver, but industry calls for policy reforms

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