Botswana’s Tourism Sector Faces Billions in ‘Leakages’
Botswana’s tourism sector is losing an estimated P7.9 billion annually. This significant sum, commonly referred to as “leakages,” represents money spent by tourists that does not remain within the local economy.
Wynter Mmolotsi, the Minister of Tourism, recently highlighted this issue to lawmakers. He explained that a substantial portion of foreign tourist expenditure exits the country instead of circulating through local businesses and value chains.
Understanding the P7.9 Billion Drain
Research from the Botswana Institute for Development Policy Analysis (BIDPA) sheds light on the causes of these financial outflows. A major contributing factor is the tourism sector’s heavy reliance on imported goods. Additionally, the widespread use of offshore booking systems funnels revenue away from domestic providers.
These challenges are particularly pronounced within Botswana’s strategy of low-volume, high-value tourism. While this model aims for high-spending visitors, it also creates vulnerabilities for economic leakage if not properly managed.
Tourism Geared for Economic Transformation
The Minister’s comments coincided with the presentation of the tourism chapter for National Development Plan 12 (2025/26–2029/30). This strategic document positions tourism as a crucial element in achieving the broader goals of the Botswana Economic Transformation Programme.
The plan aims to address the identified leakages and strengthen the local economic impact of tourism. By retaining more tourist spending within Botswana, the sector can contribute more effectively to national development and prosperity.
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