In 2019, prior to the onset of COVID-19, the industry exhibited a growth rate of 5.1 percent, following a 4.9 percent expansion in 2016. During this period, the gross value of the tourism industry amounted to P9.1 billion. However, growth decelerated significantly due to the impact of the COVID-19 pandemic. Prior to this slowdown, the tourism sector played a substantial role in the gross domestic product.
At the time, the industry employed over 58,000, positioning it as the second-largest employer in Botswana, following the government.
Tourism licenses
According to the Department of Tourism, as of January 2024, a total of 3,236 tourism licenses have been issued. Out of these, 2,654 licenses belong to 100 percent Botswana citizens, while 286 are joint ventures between citizens and non-citizens. Non-citizen enterprises hold the remaining 296 licenses. According to Lily Rakorong, the Chief Executive Officer of the Hospitality and Tourism Association of Botswana (HATAB), this distribution underscores the dominance of Botswana citizens in the tourism industry.
According to Rakorong, Botswana’s tourism industry comprises two main sectors: Camps and Lodges. These establishments primarily offer high-end tented accommodations located in the Okavango Delta, Chobe region, and game reserves. Rakorong mentioned that there are currently 307 camps and lodges operating in Botswana.
“Out of these, 137 are owned and operated by citizen companies. Joint Venture companies own 97 lodges and camps while non-citizens own only 75 camps and lodges,” revealed the HATAB CEO.
In addition to Camps and Lodges, the second sector in Botswana’s tourism industry is Hotels. Rakorong noted that Botswana citizens own 77 hotel companies, while joint venture companies and non-citizen companies own 23 and 20 hotels, respectively.
According to Rakorong, this also dispels the myth that foreign nationals control the tourism industry. Furthermore, she revealed that there are operations within the tourism industry that are reserved strictly for citizens.
“These are businesses like guest houses and boat operators which are reserved strictly for citizens. However, non-citizens who operated these businesses before the citizen reservations laws are allowed to continue operating,” Rakorong revealed, adding that the surge in interest by citizens in the tourism industry stimulates employment.
Furthermore, Rakorong disclosed that the ‘Accommodation and Food Services’ sector experienced a 4.3 percent increase in real value added in the year 2022, contrasting with a 15 percent decrease in the previous corresponding period. Additionally, she reported a recovery in tourism industry employment in 2023, with an estimated 53,000 jobs compared to the 46,750 recorded in 2022.
The accommodation sector holds a significant portion of employment, with 21,481 jobs as of January 2024.
Challenges
While Rakorong highlighted the growth of the tourism industry, she also acknowledged the challenges that hinder its further development.
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.
In the latest cabinet reshuffle announced last month, President Mokgweetsi Masisi appointed Dumezweni Mthimkhulu as the new Minister of Environment and Tourism. Mthimkhulu replaces Philda Nani Kereng, who has been appointed as Botswana’s High Commissioner to Nigeria by the President.
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 necessity of having a substantive officer to implement various policies and Acts at the government level. Frustration is also evident at the Botswana Tourism Organisation (BTO), which has experienced turnover with three Acting CEOs in the past 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 expressed 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, and no one knows if the leases will be renewed. Some have applied for new leases, and it has been years 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 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 consequence of the government’s indecisiveness regarding lease renewals, certain tourism businesses operating in prime areas of the Okavango Delta and Chobe regions are experiencing uncertainty due to delays in renewing concessions they have held for years.
There could be dire consequences, as tour operators fear that if the situation persists, some long-standing tourism investors in Botswana may have no choice but to relocate their investments elsewhere. Additionally, there is concern that if tourism investors choose other countries, it could adversely affect the development of the tourism sector in Botswana.
Operators also expressed concern that the delayed lease renewals for tourism concessions are detrimental, and there is a reasonable suspicion that some of them may not be renewed at all.
The situation began to have an impact during COVID-19 when some businesses sought access to funds from financial institutions but were unable to do so due to the unavailability of signed leases.
Rakorong pleaded with the 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 apprehensive 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 questions the lack of planning so that the policy did not impact hospitality operators or consumers in terms of skyrocketing prices. She mentioned that there was an agreement at a High-Level Consultative Council (HLCC) that the government would consult the private sector before making key decisions. Furthermore, 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, Botswana welcomed a total of 543,939 non-citizens. Among them, 337,626 (62.1 percent) were international visitors. Overnight visitors comprised 92.9 percent of the total, while same-day visitors accounted for the remaining 7.1 percent.
Tourists who visited for business purposes made up 35.5 percent of the total, while those in transit and visiting friends and relatives accounted for 32.2 percent and 14.9 percent, respectively.
Tourists who visited for holidays or leisure purposes comprised 13.8 percent of the total tourist arrivals.
