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The Tourism Industry in Botswana 2021

Charles Chinya | Botswana | 20 January 2021

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Report Coverage

This report covers Botswana’s tourism industry, which is largely centred around game reserves, wildlife, and wilderness tourism. The report includes country information, latest available tourism statistics, descriptions of major tourist destinations, players and corporate and government actions, and influencing factors including the economic environment and the effect of coronavirus on the sector. There are profiles of 10 companies including the relatively large tourism and hotel groups such as Chobe, Cresta Marakanelo and Wilderness, and tour operators such as Gondwana Travel & Tours, Kalahari Breeze Safaris and Ngamiland Explorations.

Introduction

Since independence in 1966, Botswana has relied on commodities, particularly diamonds, for economic growth. This reliance makes Botswana’s economic growth prospects vulnerable to international market fluctuations. According to Statistics Botswana, GDP for the first quarter of 2020 was (pula) P50.7bn (US$4.7bn or R69bn) compared to P49bn (US$4.6bn or R67bn) in the fourth quarter of 2019, a rise of 2.6%, attributed largely to the contribution of water and electricity; finance and business services; and trade, hotels and restaurants which increased by 13.4%, 6.2% and 4.4% respectively. In the second quarter the economy shrank 24% year-on-year because of a nationwide lockdown in the same quarter to curb the coronavirus pandemic. The Botswana government identified tourism as a sector that could contribute to the diversification of the economy. The Botswana Tourism Master Plan, adopted in 2000, recognised the potential growth of the tourism sector and its significant role in benefitting the country economically. The more recent National Tourism Development Strategy and Master Plan, which is being finalised, seeks to provide guidance on the sustainable implementation and management of tourism policy. Tourism contributed 13.1% of Botswana’s GDP growth in 2019. Its contribution has increased from 6.3% in 2000, growing at an average annual rate of 4.71%. In 2019, travel and tourism accounted for 8.9% of total employment in Botswana, equating to 84,500 jobs. Statistics Botswana’s tourism statistics annual report of 2018, published in September 2020, indicate that a total of 1,830,274 visitors were received in 2018, of which 90.4% (1,654,638) were tourists, up 3.1% compared the previous year. According to the World Bank, Botswana’s economy is expected to contract by at least 9% in 2020 as coronavirus affects global demand, and travel restrictions constrain output in the country’s key diamond and tourism industries. Botswana has maintained strict coronavirus regulations for internal and external movements of tourists, resulting in operational challenges for the tourism industry.

Strengths

• .
• Good airline connections to Gaborone from Johannesburg.
• Strong promotion provided by Botswana Tourism Organisation
• World class natural and cultural assets to attract tourists.

Weaknesses

• Infrastructure challenges on roads.
• Lack of sufficient market research.
• Limited diversity of tourism products.
• Limited flight connections to tourism spots such as Okavango Delta and Kgalagadi game reserve.
• Power, communication, and technological challenges.
• Weak vocational training..

Opportunities

• Gaborone as the Southern African Development Community headquarters, offers tourism potential.
• Potential for corporate bookings.
• Potential for the development of cultural and community tourism.

Threats

• Advanced level tourism facilities promotion in neighbouring South Africa, Namibia, and Zimbabwe.
• Air Botswana unpredictable flight schedules.
• Delays in issuing tourist visas..

Outlook

Botswana faces unprecedented economic challenges due to the coronavirus pandemic which has significantly changed the short to medium term outlook of the tourism industry in general and brought in an unprecedented level of uncertainty. The industry will experience slow growth from 2021 onwards as the effects of the pandemic extend into 2021. Tourism in Botswana is heavily reliant on international tourist arrivals, and its growth will depend on how soon the pandemic is controlled. As companies in the sector will have to rely on local tourists in the interim, they will have to design affordable and attractive holiday packages that align with domestic market requirements.

Read More..
The Tourism Industry in Botswana
The Tourism Industry in Botswana 2021

Full Report

R 1 900.00(ZAR) estimated $103.33 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.33 (USD)*

Table of Contents

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PAGE
1. INTRODUCTION 1
2. COUNTRY INFORMATION 1
3. DESCRIPTION OF THE INDUSTRY 5
3.1. Industry Value Chain 5
3.2. Geographic Position 8
4. SIZE OF THE INDUSTRY 11
5. STATE OF THE INDUSTRY 11
5.1. Local 11
5.1.1. Corporate and Government Actions 16
5.1.2 Regulations and Government Policies 16
5.1.2. Enterprise Development and Social Economic Development 17
5.2. Continental 19
5.3. International 20
6. INFLUENCING FACTORS 21
6.1. Coronavirus 21
6.2. Economic Environment 22
6.3. Rising Operating Costs 23
6.4. Government Incentives and Support 23
6.5. Environmental Concerns 25
6.6. Sharing Economy 26
6.7. Cyclicality 26
6.8. Crime and Safety 26
6.9. Technology, Research and Development and Innovation 27
6.10. Labour 27
7. COMPETITION 28
7.1. Barriers to Entry 28
8. SWOT ANALYSIS 28
9. OUTLOOK 29
10. INDUSTRY ASSOCIATIONS 29
11. REFERENCES 30
11.1. Publications 30
11.2. Websites 30
APPENDIX 1 32
Summary of Notable players 32
COMPANY PROFILES 37
CHOBE HOLDINGS LTD 37
CRESTA MARAKANELO LTD 40
GONDWANA TRAVEL & TOURS (PTY) LTD 43
KALAHARI BREEZE SAFARIS (PTY) LTD 45
MOSU SAFARI TOURS (PTY) LTD 46
NGAMILAND EXPLORATIONS LTD 47
PEERMONT GLOBAL (BOTSWANA) LTD 48
SAVUTI LINYANTI KHWAI GROUP OF CAMPS (PTY) LTD 50
SHIFTING SANDS SERVICES (PTY) LTD 52
WILDERNESS HOLDINGS LTD 54