Connect with us
Advertisement

Tourism injected P27 billion in 2018

Botswana‘s Tourism sector grew by 3.4 percent in the year 2018, this is according to the World Travel and Tourism Council’s (WTTC). The global organization came to this conclusion in their annual review of the economic impact and social importance of the tourism sector. The findings of the study that compared the sector across 185 countries were this week

WTTC study suggests that Botswana’s Travel and Tourism sector grew by 3.4 percent which is above the Sub-Saharan African average of 3.3 percent; and it contributed US$2.52 billion (a bout P27 billion) to the country’s economy. This mirrors 13.4 percent of all economic impact in the country, and nearly one in every seven dollars in the economy.

Furthermore during the year 2018 Botswana’s tourism sector supported 84 000 jobs which is 8.9 percent of the county’s total employment. The WTTC says this was primarily driven by leisure travelers, with 96 percent of the travel and tourism spending in the economy that was generated by leisure visitors and just four percent from business travelers; weighing towards international travel which amount to 73 percent of spending which came from international travelers and 27 percent from domestic travel.

“Botswana is a jewel in the crown of Sub-Saharan Africa’s travel and tourism sector. It is home to some of the most iconic tourism sites in Africa, such as the Okavango Delta, Chobe National Park and the Central Kalahari Game Reserve,” said WTTC President and Chief Executive Officer, Gloria Guevara.

The tourism industry continues to be one of Botswana cardinal economic sectors ,  literally the second anchor’s of the Botswana’s fiscals, contributing significantly to government revenue , creating a whole value chain of Small medium enterprises and supporting other macro businesses that account for significant shares in Botswana ‘s economic setup . The sector is the second foreign income earner after the lucrative Mining sector particularly the diamond industry.

The World Tourism & Travel Council (WTTC) projected that direct contribution to the country’s GDP will grow by 5.8 percent in 2018. In 2017 The direct contribution of Travel & Tourism to Botswana‘s Gross Domestic Product was BWP7, 129.6 million. The sector‘s total contribution to the GDP was BWP21, 496.5 million (USD2, 072.9mn) accounting for 11.5 percent of GDP with projected rise of 4.5 percent pa to BWP34, 874.2 million 11.7 percent of GDP by 2028.

The Tourism sector is one of the world’s largest economic sectors, creating jobs, driving exports, and generating prosperity across the world. The annual analysis of the WTTC on global economic impact of Travel & Tourism reveals that in 2018 the sector accounted for over 10 percent of global GDP and over 300 million jobs that is 9.9 percent of total employment. The Tourism Satellite Account compiled by United Nations World Tourism Organization (UNWTO) published last year that in 2016 alone Botswana’s Tourism sector realised 1.9 million visits which generated over P14 billion worth of business.

In the wake of uncertainties surrounding finite resources that natural diamonds are, forecasted introduction of robotic labour in mining undertakings as well as synthetic diamonds Botswana government has identified the Tourism industry as the next “big thing”. This has been revealed by President Mokgweetsi Masisi in many of his media briefings late last year .Currently Botswana‘s Tourism sector is heavily dependent on wildlife and natural environments as key tourists attraction features   and money spinning apparatus.

However President Masisi says to further grow the tourism sector government is moving at speed to create and support new products within the tourism sector in a bid to not just diversify the economy but create more jobs for its citizenry. “We have identified diversification of tourism products, full utilization of wildlife, and leisure and entertainment industry as key sectors to unpack and unleash our economy to its potential” said Masisi when addressing members of the Media late last year.

The President also underscored that if Botswana‘s tourism products are diversified with much more value Batswana will be wooed to visit their own country rather than flying outside for holidays and leisure excursions. Currently Batswana are of the view that visiting Durban and for example Mauritius as a holiday destination is much better as the latter has much more to offer as there are side refreshing and amusing organized events other than just natural features and wildlife”

When commenting on WTTC report Botswana Tourism Organization (BTO) Chief Executive Officer Myra Sekgororoane said Botswana has long grasped the potential of Travel and Tourism to drive economic growth, create jobs and promote social development. “I am delighted to see that Botswana recorded another year of growth ahead of the regional average, reflecting the excellent work from our part”

WTTC experts observe that the power of resilience in Travel and Tourism will be much needed for the many established Travel and Tourism destinations that were severely impacted by natural disasters in 2017. “While our data shows the extent of these impacts and rates of recovery over the decade ahead, beyond just numbers, WTTC and its Members are working hard to support local communities as they rebuild and recover,” reads the review. 

WTTC notes that inclusive growth and ensuring a future with quality jobs remains a concern for governments everywhere. Travel and Tourism, which already supports one in every ten jobs on the planet, is a dynamic engine of employment opportunity. Over the past ten years, one in five of all jobs created across the world have been in the sector and, with the right regulatory conditions and government support, nearly 100 million new jobs could be created over the decade ahead.

Experts note that over the longer term, forecast growth of the Travel and Tourism sector will continue to be robust as millions more people are moved to travel to see the wonders of the world. Strong growth also requires strong management, and WTTC pledges to continue to take a leadership role with destinations to ensure that they are planning effectively and strategically for growth, accounting for the needs of all stakeholders and using the most advanced technologies in the process.

Continue Reading

Business

Payless to partake in BSE’s Flagship Tshipidi program

28th June 2022
PAYLESS

Newly established wholly indigenous citizen owned retail chain Payless Retail (PTY) Ltd is set to partake in the first session of Botswana Stock Exchange (BSE)’s Tshipidi Mentorship Program (TMP) on Monday June 29th.

The TMP aims to train and capacitate SMEs so they can operate as corporates and eventually list on the local bourse. According to local bourse, BSE, the program aims to provide practical training to potential issuers through a comprehensive and interactive program that covers the key themes necessary to position a company to list on the BSE.

Payless Retail is a newly established supermarket chain whose mission is to become a convenient one-stop shopping destination as it is one of the Botswana oldest retailing brands.  It started off as Corner Supermarket in January 1976, and to date boasts of nine stores in, among others, Gaborone, Mochudi, Molepolole and Tlokweng. Payless was recently acquired by Ellis Retail Group, which is led by businessman Elliot Moshoke.

The takeover catapulted Ellis Retail to the envious position of being the first wholly indigenous owned major retail chain. “We jumped at this opportunity because it gave us a chance to prove to Batswana that the retail business is open and lucrative.”

The objective is to create a proudly Botswana retail chain that fully supports our national Vision, economic development and citizen economic empowerment ambitions,” Moshoke told BusinessPost.

He further emphasized that Batswana are capable and able to run large scale businesses hence they need to accept invite foreign investors who will come in to support us not take the business.
“Our win as Payless in the Fast Moving Consumer goods (FMCG) industry is a win for Batswana. We need their support in this difficult and challenging journey.

As you are aware, Payless is the only retail chain in the hands of Batswana ba Sekei. We need to take advantage of this to generate employment and create small businesses in retail and Agri businesses,” he explained.

The retailer has also partnered with Botswana Investment & Trade Center (BITC) on their #PushaBW campaign with a view to initiating earnest engagement with local producers to iron out bottlenecks and ensure seamless trading.

“Local producers have to be part of the phenomenal growth of the Payless brand. This will in turn facilitate employment creation and economic growth. We did this because we have the utmost respect for local manufacturers and producers,” he mentioned.

Payless is currently restocking all of its stores; a development that Moshoke says is testament to the retailer’s commitment to growing the brand and ensuring continuity of business. He further revealed that renowned retail suppliers like PST and CA Sales have reignited their trust in Payless, opening their doors for Payless as they have faith in the retailer’s new owners.

The takeover has reportedly saved more than 200 jobs and gave a new lease of life to the previously fledging Payless brand. According to a press release from the management team, the Payless work forces are also extremely excited about what the future holds. The TMP is a comprehensive and interactive program that covers the key themes necessary to position a company to list on the BSE.

The program is administered by experts within the listing ecosystem and seeks to bring the potential issuers closer to the listings advisers, investors and leaders of already listed companies.  “As a strategic initiative, the BSE decided to set up this mentorship program in a bid to assist SMEs to strategize, corporatize and acclimatize in order to list to access equity finance and expand operations,” said the BSE.

The TMP will avail to SMEs practical insights, knowledge and feedback from institutional investors, increased awareness of the BSE listing requirements as well as an intimate network of advisors and CEOs of listed companies. After training, Payless will graduate with improve governance structures and better knowledge of articulating its business strategy. The retailer will also gain increased visibility through BSE marketing platforms.

Continue Reading

Business

BITC assisted companies rake in P2.96 billion in export earnings

21st June 2022
BITC-CEO-Keletsositse-Olebile

Despite Covid-19 interrupting trade worldwide, exporting companies in Botswana which benefited from the Botswana Investment and Trade Centre (BITC) services realised P2.96 billion in export earnings during the period from April 2020 to March 2021.

In the preceding financial year, the sale of locally manufactured products in foreign markets had registered export revenue of P2, 427 billion against a target of P3, 211 billion BITC, which celebrates 10 years since establishment, continues to carry out several initiatives targeted towards expanding the Botswana export base in line with Botswana’s desire to be an export led economy, underpinned by a robust export promotion programme in line with the National Export Strategy.

The main products exported were swamp cruiser boats, pvc tanks and pvc pipes, ignition wiring sets, semi-precious stones, veterinary medicines, hair braids, coal, textiles (towels and t-shirts) and automobile batteries. These goods were destined mainly for South Africa, Zimbabwe, Austria, Germany, and Namibia.

With Covid-19 still a problem, BITC continues to roll out targeted virtual trade promotion missions across the SADC region with a view to seeking long-lasting market opportunities for locally manufactured products.

Recently, the Centre facilitated participation for Botswana companies at the Eastern Cape Development Council (ECDC) Virtual Export Symposium, the Botswana-Zimbabwe Virtual Trade Mission, the Botswana-Zambia Virtual Trade Mission, Botswana-South Africa Virtual Buyer/Seller Mission as well as the Botswana-Namibia Virtual Trade Mission.

BITC has introduced an e-Exporting programme aimed at assisting Botswana exporters to conduct business on several recommended e-commerce platforms. Due to the advent of COVID-19, BITC is currently promoting e-trade among companies through the establishment of e-commerce platforms and is assisting local companies to embrace digitisation by adopting e-commerce platforms to reach export markets as well as assisting local e-commerce platform developers to scale up their online marketplaces.

During the 2019/2020 financial year, BITC embarked on several initiatives targeted at growing exports in the country; facilitation of participation of local companies in international trade platforms in order to enhance export sales of local products and services into external markets.

BITC also helped in capacity development of local companies to compete in global markets and the nurturing of export awareness and culture among local manufacturers in order to enhance their skills and knowledge of export processes; and in development and implementation of trade facilitation tools that look to improve the overall ease of doing business in Botswana.

As part of building export capacity in 2019/20, six (6) companies were selected to initiate a process to be Organic and Fair Trade Certified. These companies are; Blue Pride (Pty) Ltd, Motlopi Beverages, Moringa Technology Industries (Pty) Ltd, Sleek Foods, Maungo Craft and Divine Morula.

In 2019 seven companies which were enrolled in the Botswana Exporter Development Programme were capacitated with attaining BOBS ISO 9001: 2015 certification. Three (3) companies successfully attained BOBS ISO 9001:2015 certification. These were Lithoflex (Pty) Ltd, General Packaging Industries and Power Engineering.

BITC’s annual flagship exhibition, Global Expo Botswana (GEB) to create opportunities for trade and strategic synergies between local and international companies. The Global Expo Botswana) is a premier business to business exposition that attracts FDI, expansion of domestic investment, promotion of exports of locally produced goods and services and promotion of trade between Botswana and other countries.

Another tool used for export development by BITC is the Botswana Trade Portal, which has experienced some growth in terms of user acceptance and utilisation globally. The portal provides among others a catalogue of information on international, regional and bilateral trade agreements to which Botswana is a party, including the applicable Rules, Regulations and Requirements and the Opportunities for Botswana Businesses on a product by product basis.

The portal also provides information on; measures, legal documents, and forms and procedures needed by Botswana companies that intend on doing business abroad. BITC continues to assist both potential and existing local manufacturing and service entities to realise their export ambitions. This assistance is pursued through the ambit of the Botswana Exporter Development Programme (BEDP) and the Trade Promotion Programme.

BEDP was revised in 2020 in partnership with the United Nations Development Programme (UNDP) with a vision to developing a diversified export-based economy. The programme focuses mostly on capacitating companies to reach export readiness status.

Continue Reading

Business

Inflation up 2.3 percent in May

21st June 2022
Inflation

Prices for goods and services in this country continue to increase, with the latest figures from Statistics Botswana showing that in May 2022, inflation rate rose to 11.9 percent from 9.6 percent recorded in April 2022.

According to Statistics Botswana update released this week, the largest upward contributions to the annual inflation rate in May 2022 came from increase in the cost of transport (7.2 percent), housing, water, electricity, gas & other Fuels (1.4 percent), food & non-alcoholic beverages (1.1 percent) and miscellaneous goods & services (0.8 percent).

With regard to regional inflation rates between April and May 2022, the Rural Villages inflation rate went up by 2.5 percentage points, from 9.6 percent in April to 12.1 percent in May 2022, according to the government owned statistics entity.

In the monthly update the entity stated that the Urban Villages inflation rate stood at 11.8 percent in May 2022, a rise of 2.4 percentage points from the April rate of 9.4 percent, whereas the Cities & Towns inflation rate recorded an increase of 1.9 percentage points, from 9.9 percent in April to 11.8 percent in May.

Commenting on the national Consumer Price Index, the entity stated that it went up by 2.6 percent, from 120.1 in April to 123.2 in May 2022. Statisticians from the entity noted that the transport group index registered an increase of 7.3 percent, from 134.5 in April to 144.2 in May, mainly due to the rise in retail pump prices for petrol and diesel by P1.54 and P2.74 per litre respectively, which effected on the 13th of May 2022.

The food & non-alcoholic beverages group index rose by 2.6 percent, from 118.6 in April 2022 to 121.6 in May 2022 and this came as a result of increase in prices of oils & fats, vegetables, bread & cereal, mineral waters, soft drinks, fruits & vegetables juices, fish (Fresh, Chilled & Frozen) and meat (Fresh, Chilled & Frozen), according to the Statisticians.

The Statisticians said the furnishing, household equipment & routine maintenance group index rose by 1.0 percent, from 111.6 in April 2022 to 112.7 in May 2022 and this was attributed to a general increase in prices of household appliances, glassware, tableware & household utensils and goods & services for household maintenance.

The prices for clothing & footwear group index moved from 109.4 to 110.4, registering a rise of 0.9 percent during the period under review. Bank of Botswana has projected higher inflation in the short term, associated with the likelihood of further increases in domestic fuel prices in response to persistent high international oil prices and added that the possible increase in public service salaries could add also upward pressure to inflation in this country.

Continue Reading
Weekend Post