Botswana’s ambition to establish tourism as a cornerstone of economic diversification is being constrained by a persistent investment deficit that has left the sector lagging behind regional competitors, despite the country’s globally acclaimed wildlife resources and natural attractions.
A new study by the Botswana Institute for Development Policy Analysis (BIDPA) argues that Botswana remains significantly less competitive than tourism-dependent economies such as the Seychelles and Mauritius, raising questions about the sector’s capacity to serve as a viable long-term alternative to diamond-led growth.
‘However, Botswana’s tourism sector is not competitive compared to other regional countries,’ the report notes, adding that ‘Countries such as Seychelles had made huge investment in the sector, and as a result, their tourism sector had made immense contribution to the country’s economic development.’
The findings highlight a widening divergence between Botswana and some of the region’s most successful tourism economies. In the Seychelles, sustained and deliberate investment over several decades has transformed tourism into the principal driver of economic activity and employment.
According to BIDPA, the Seychelles devoted approximately 34.4 percent of export earnings to tourism capital investment between 1997 and 2015. By comparison, Botswana invested just 5.8 percent over the same period. The result has been a striking disparity in economic outcomes, with tourism accounting for nearly 59 percent of GDP and employment in the island nation.
The study contends that for tourism to make a meaningful contribution to Botswana’s economic diversification agenda, policymakers must prioritise investment in human capital, reduce economic leakages and create conditions that encourage greater private-sector participation.
‘There is need for government to promote hospitality skills (from semi-skilled to highly skilled management levels), reduce tourism leakages, and promote a conducive environment for private investment,’ the report notes.
While tourism already contributes significantly to Botswana’s economy, its impact remains well below its potential. Researchers identify inadequate infrastructure, insufficient investment, uneven service standards and limited product diversification as among the principal obstacles undermining competitiveness.
‘Factors such as quality of the infrastructure including housing, beds, internet connection, roads and other factors can make tourism competitive if they are of high standard,’ the study says.
The report arrives at a critical juncture as Botswana intensifies efforts to reduce its dependence on diamonds amid growing concerns about the sustainability of mineral-driven growth. The findings suggest that tourism possesses the potential to become a far more important economic pillar, but only if substantial investments are made to improve competitiveness across the sector.
Absent such reforms, Botswana risks squandering one of its most promising opportunities to broaden its economic base, generate employment and create a more resilient post-diamond economy. The study’s central message is clear: natural endowments alone are insufficient. Without sustained investment and strategic policy intervention, tourism is unlikely to fulfil its promise as Botswana’s next engine of growth.