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Botswana loses millions of pula in tourism

Botswana not benefitting from tourists visits

Botswana is said to be losing a large percentage of its tourism revenue to other countries as a result of leakages. In tourism, the leakage is the way in which revenue generated by tourism is lost to other countries' economies. Leakage may be so significant in some developing countries that it partially neutralizes the money generated by tourism.


Leakages occur in various ways, among them the purchasing of goods and services to satisfy their visitors and, through infrastructure where some less economically developed countries do not have the domestic ability to build tourism-related infrastructure (hotels, airports, etc.).


The cost of such infrastructure is then leaked out of the country. Then other factor is foreign factors of production where smaller countries often require foreign investment to start their tourism industry. Thus, profits from tourism being lost to foreign investors. In addition, travel agents outside of the destination country remove money from that market as well.


Other factors include promotional expenditure where many countries spend considerable sums of money for advertisements and publicity. Botswana has been a victim of this type of leakages.


Maintaining a presence abroad may increase the volume of tourists to a country but also represent a considerable loss of money to foreign markets. There is also what is called transfer pricing where –many foreign companies manipulate their pricing to reduce taxes and other duties. In smaller or less developed countries, where many tourism-related companies may be foreign owned, this can represent a substantial loss of income.  


Botswana is among the top 10 developing countries considered as adventure tourism destinations due to her commitment to sustainable development to tourism, according to the Adventure Tourism Development Index.


Last week a member of the Parliamentary Accounts Committee (PAC), Guma Moyo put it to the Permanent Secretary in the Ministry of Environment, Wildlife and Tourism, Elias Magosi that he understands that Botswana is not benefiting from tourists income as the bulk of it goes to foreign countries. Magosi admitted to the possibility, saying that he would follow up the matter with his Ministry.

In the 2014 state of the nation address, President Lt Gen Ian Khama pointed out that in 2013/14 alone, 135 newly licensed citizen-owned enterprises were registered. He explained that as of May 2014, 61 per cent (enterprises) were citizen-owned, 23 per cent were joint ventures, while only 16 per cent were foreign owned. These numbers, WeekendPost can reveal, have greatly increased.


Research shows that for many countries, some sources of leakage are unavoidable. Foreign-owned hotels and airlines are necessary for all but the most established of tourism industries. According to research encouragement of domestic involvement in a country's tourism industry may reduce leakage in the long run. Currently, the most popular measure is restrictions on spending. Countries may limit the use of foreign currency within their borders, reducing the effect of transfer pricing.


The 2007 Tourism Satellite Account by the World Travel and Tourism Council and its partners, Oxford Economics, facilitated by the Botswana Tourism Board, indicates that in 2005, international tourist arrivals by Mode of Transport was 95.4 percent by road, 4.4 percent by air, and only 0.2 percent by rail.


 The tourism industry has played an important role in economic diversification with the sector currently employing around 35 000 people. This was revealed by President Lt Gen.Seretse Khama Ian Khama during the State-of-the-Nation Address in Parliament last year.


He said the industry has experienced 45 per cent increase in licensed enterprises in the past decade with recent growth largely driven by citizen investment. The recently established Tourism Organisation has started its operations.

This organization is a parastatal body mandated to Market the Botswana Tourist Product, Grade and Classify tourist accommodation facilities as well as to promote investment in the Tourism sector.


The Botswana Government’s decision to establish the Botswana Tourism Organisation as a separate institution was in recognition of the fact that functions such as marketing, whether be of a sector or industry are best done outside Government. This Organisation takes over some of the activities that have traditionally been run by the Department of Tourism.

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BAD WEEK FOR MANCHESTER CITY

6th February 2023

After falling to close the gap on Arsenal by losing to a record breaking goal by Kane at the Tottenham stadium.Manchester City now find themselves being charged by the Premier League with more than 100 breaches of its financial rules following a four-year investigation.

According to BBC , it has referred the club to an independent commission over alleged rule breaches between 2009 and 2018 , and also that Man-city has not been co-operating since the investigation which started in 2018 .

BBC further states that The commission can impose punishment including a fine , points deduction and expelling the club from the Premier league.

The alleged breaches include ,  breaching rules for requiring full details of manager remuneration,from 2009-2010, to 2012-2013 seasons when Roberto Mancini was in charge . Also player remuneration between 2010-2011 and 2015-2016.

The Premier league stated that City breached rules related to UEFA regulations , including Financial Fair Play , from 2013-2014 to 2017-2018 ,as well as Premier League rules on profitability and sustainability from 2014-2016 to 2017-2018

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South Korean Embassy aids students living with disabilities

6th February 2023

South Korean Ambassador in South Africa has donated e-learning equipment through Botswana Red Cross Society (BRCS) to Tlamelong Rehabilitation Centre in Tlokweng recently, in a bid to fine tune the student’s textile skills.  

When talking at the handing over ceremony, Chull-Joo Park, said they agreed with BRCS to give out e-learning equipment to better the training skills of students living with disabilities.

“With the Information and Communication Technology (ICT) equipment and job training skills, we will be able to help the students living with disabilities to do e-learning and to better their education and job training,” said Chull-Joo Park.

It was revealed that the South Korean Embassy approached BRCS with the intent to donate equipment and educational material that includes an embroidery machine, photo copier machine, tablets and interactive boards to be utilized by the trainees.

The industrial printer is a machine that works with embroidery machine to print designs for clothing and it will enable the learners to have more material available to them to facilitate learning.

Through this embroidery machine, students will be exposed to better technologies which ultimately improve the quality of materials they produce. It will also allow students to learn business skills and run profitable ventures.

Smart board gadgets will provide the students with an elevated learning process to be fostered by e-learning. The gadgets provide a more visual element to the learning process, which in turn improves learner mental retention.

Tlamelong Rehabilitation serves the marginalized and underserved less privileged persons living with disability in Botswana. The center offers boarding services, vocational training, social services, physiotherapy and rehabilitation services for young people living disabilities aged 18-35 from across the country over a period of two (2) years per cohort which has a maximum intake capacity of 35. BRCS through International Federation of the Red Cross and Red Crescent Societies (IFRC) have managed to create great working synergy with the South Korean Embassy in Pretoria based in South Africa to support or augment the National Society’s Rehabilitation Centre’s learning challenges.

For his part, BRSC Secretary General Kutlwano Mokokomani said they are delighted to convey their gratitude as BRSC to the South Korean Embassy for donation and they look forward to an enduring partnership for such worthy causes.

“South Korean Embassy’s great gesture will enable trainees to thrive, to fulfil their dreams to become a reality as this equipments will go a long way in creating great impact in the lives of trainees and their families. We wish to convey our sincere gratitude to the South Korean Embassy for their noble gesture of donating the E-learning equipments.”

BRCS offers rehabilitation services spread across three (3) areas in Botswana being Sefhare Stimulation center in Sefhare, Tshimologo stimulation center in Francistown and Tlamelong rehabilitation center in Tlokweng.

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