Tourism plan targets P7.9bn sector ‘leakages’

Botswana Confronts Billions in Tourism Revenue Loss

Botswana’s tourism sector faces a significant challenge: an estimated P7.9 billion in annual “leakages.” This figure, highlighted by Tourism Minister Wynter Mmolotsi, suggests a substantial portion of foreign tourist spending is leaving the country rather than benefiting local businesses.

Offshore Systems and Imports Drive Losses

Research from the Botswana Institute for Development Policy Analysis (BIDPA) indicates two primary drivers for these financial outflows. The country’s reliance on imported goods to supply its tourism industry, coupled with the widespread use of offshore booking systems, contributes to these leakages. This issue is particularly relevant given Botswana’s focus on a low-volume, high-value tourism model.

Tourism Key to Economic Transformation

The Minister’s comments were made during the tabling of the tourism chapter for National Development Plan 12 (2025/26–2029/30). This plan positions tourism as a crucial element in achieving the broader objectives of the Botswana Economic Transformation Programme. Addressing these financial leakages is expected to be a key component of the new development strategy.

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