A new study by Botswana Institute for Development Policy Analysis (BIDPA) has revealed how Botswana is failing to fully exploit tourism as a vehicle for economic diversification despite possessing a wealth of wildlife, natural resources and a reputation for peace and stability.
The study titled The Impact of Economic Growth in Botswana, says Botswana’s tourism industry remains uncompetitive when compared with regional destinations such as Seychelles and Mauritius, raising questions about the country’s ability to use the sector to reduce its long-standing dependence on minerals.
According to the study, Botswana has a significant comparative advantage in tourism, with its game reserves, national parks, wildlife and wetlands providing the foundation for a globally attractive tourism industry.
However, it argues that this potential has not translated into meaningful economic diversification.
‘Botswana’s tourism sector is not competitive compared to other regional countries (e.g. Seychelles and Mauritius), despite the country’s comparative advantage, abundance of wildlife and being peaceful in nature,’ the study says.
It identifies insufficient investment as one of the major factors holding the sector back, arguing that inadequate investment has prevented Botswana’s tourism industry from becoming sufficiently competitive in the global market.
The study contrasts Botswana’s performance with that of Seychelles and Mauritius saying the two countries have made significant investments in tourism, allowing the sector to make a substantial contribution to economic growth.
‘Other regional countries, including Seychelles and Mauritius, have made significant investments in tourism which has resulted in the sector contributing immensely to economic growth,’ the study states.
The findings come as Botswana continues to grapple with the challenge of diversifying an economy heavily dependent on minerals, particularly diamonds.
The study argues that tourism could provide one of the most immediate avenues for diversification because it is labour-intensive and has strong linkages with other sectors of the economy.
It says expanding tourism could create employment, particularly for young people and communities in rural areas, while simultaneously supporting businesses involved in food supply, accommodation, transport, internet services and other local services.
‘Promoting tourism development is considered as a key strategy that can lead to economic upliftment, export diversification and employment creation, further leading to poverty reduction,’ the study says. BIDPA says Botswana needs to significantly improve the quality of infrastructure and services supporting the tourism industry.
It points to housing, accommodation capacity, internet connectivity and roads as among the factors that can determine whether the country is competitive as an international tourism destination.
‘Service quality needs to be encouraged in Botswana’s tourism sector,’ the study says, warning that infrastructure and other supporting services need to meet high standards if Botswana is to compete successfully in the global tourism market.
The study also calls for greater investment in hospitality skills, arguing that Botswana needs a workforce capable of delivering the service standards expected by international tourists.
It recommends product diversification so that Botswana does not rely too heavily on traditional wildlife and safari offerings, while also calling for a clear tourism market strategy.
The study argues that if government is serious about using tourism to drive economic diversification, it must commit more resources to the sector.
‘If the objective of government is to promote economic diversification through tourism, the policy should strengthen and commit more resources to tourism development in order to expand the sector and increase demand for its products,’ it says.
It further calls for a more conducive environment for private-sector investment, arguing that greater investment would help expand the tourism industry and increase its contribution to economic growth and exports.
BIDPA also recommends policies focused on environmental conservation, reducing tourism leakages and empowering citizens to participate more actively in the sector.
The issue of tourism leakages is particularly important because a larger tourism industry does not automatically mean that most of the money generated remains in Botswana. The study argues that policies should ensure greater participation by citizens and local businesses so that tourism revenue circulates more extensively within the domestic economy.
The study concludes that Botswana is well positioned to become a major tourism destination but is failing to fully convert its natural advantages into economic gains.
It argues that developing tourism would not only generate foreign exchange and exports but also stimulate activity across multiple sectors.
‘Tourism also has strong economic linkages with other sectors, therefore, its development will also benefit other sectors, for example, local service providers such as food, internet, accommodation, transport and others,’ the study says.