REPORT ON THE IMPACT ON SADC COUNTRIES

Prepared by: Hospitality and Tourism Association of February 2006 TABLE OF CONTENTS

1. General Overview

2. An Overview of Tourism Demand Worldwide and a Review of Key Issues in the Next Five Years in Botswana and the Region

3. Tourism Products and Services in Southern Sub-Region

4. Industry Performance for the last five years and projections for the Future

5. Constraints

6. Development Needs For The Tourism Industry In Southern Africa Region

7. Role Of Information Communication Technology (ICT), Science And Research In Tourism

8. Conclusion

2 1. General Overview

The Southern Africa Development Coordinating Conference (SADCC) was established in 1980 and later in 1992 was transformed to what is now known as the Southern Africa Development Community (SADC). The main aim of SADC is for regional economic integration and social Development. The region’s population is in excess of 300 million.

Tourism is one of the fastest growing sectors in the SADC member States and an important foreign exchange earner. This sector is also one of the largest employers directly or indirectly. The capacity of tourism sector to generate further employment in the future is substantial.

However, the sub-region experienced a decline in the number of tourist arrivals by 0.3 percent. continues to be the leader in the sub region and also in Africa where it holds the position as the most visited destination. Botswana is the second most important destination in the sub region with just over one million arrivals in 2003 and receipts amounting to P1.8 billion. International tourism receipts for the region amounted to five billion in the year 2003. South Africa is till the main earner.

Most countries in the region have Ministries of Tourism with Departments responsible for Tourism. Additionally, there are Tourism Boards that are responsible for regulation of tourism related activities and services. Tourism Intermediary organisations also exist in order to facilitate advocacy and lobbying activities on behalf of their members (e.g. HATAB in Botswana, FENATA in ). These organisations also facilitate marketing activities for their members to attend world tourism market fairs.

The sub region also has a regional tourism body (Regional Tourism Organisation of Southern Africa – RETOSA)) that is responsible for having a unified marketing strategy. These institutional arrangements are necessary to enable economic diversification through the tourism sector. SADC member states recognize tourism as an important contributor to jobs, incomes and government revenues. The sub region has agreed on regional strategy to encourage sharing of resources through development of Transfrontier Conservation Areas of which sustainable tourism is the main motivation.

Tourism in Botswana has grown substantially in recent years. Between 1986 and 1998 the total umber of recorded holiday arrivals grew by 10.1 per annum. This rapid expansion pointed to considerable potential for the sector to contribute towards Botswana’s economic diversification.

Similarly, in other countries of the sub region tourism potential is recognized as another engine of economic growth and diversification and for increasing foreign exchange earnings. SADC is a region richly endowed with natural resources, waters, flora and fauna. Since some are cross boarder resources, instruments to facilitation sub region conservation have been put in place for instance, the Protocol on Conservation and Law Enforcement. The main objective of

3 the protocol is to provide a sound basis for the equitable exploitation of resources, for shared prosperity.

2. An Overview of Tourism Demand Worldwide and a Review of Key Issues in the Next Five Years in Botswana and the Region

International Tourism has experienced a decline in 2001 than was anticipated by the World Tourism Organisation (WTO) after September 11 events in the of America.

In 2003 World tourist arrivals declined by 1.7 percent corresponding to 12 million contraction to 691 million arrivals on the 2002 volume of 703 million. This result is closely linked to the unexpected drop of 12 million arrivals (-9%) suffered by Asia and the Pacific due to the SARS scare. World tourist receipts grew from 482 to 500 billion in the year 2003. (See Table below)

Table 1: International Tourist Arrivals by Regional Groupings

Regional Grouping Tourist Arrivals Average Annual Growth (millions) e%

2000 2002 2003 1995/2000 2000/2003 World Total 685.5 702.8 690.9 4.7 0.3 Africa 28.6 29.9 30.8 6.7 2.5 America 128.2 116.6 113.0 3.3 - 4.1 Asia and the Pacific 114.9 131.1 119.3 6.2 1.3 Europe 389.6 397.3 399.0 4.2 0.8 Middle East 24.3 27.9 28.8 12.0 5.9 Source: World Tourism Organisation (WTO)

Despite the challenges facing the industry worldwide, which include the stagnation of the world economy and the fall out of the September 11 events, Southern Africa is reported by WTO to have recorded 12.8 million arrivals in 2002. This is a 6.5% growth over 2001. South Africa remained the most favoured destination despite the 1.5 per cent decrease in arrivals.

The overall image of the region has since improved since the signing of peace treaties in Angola and the Democratic Republic of Congo and the end of the Mozambique war. . This has given positive improvement to the tourism sector in the sub region.

In order for the region to manage tourism sustainable and responsible manner environmental management is to be mainstreamed throughout all sectors of the economy. In Botswana for instance the is a lifeline to communities around it. As such a management plan for the sustainable management of the Okavango Delta is necessary. Currently positive progress has

4 been made with the development of a plan is for coordinating activities inside the Delta and sustainable management of resources in order to maintain the pristine nature of the Okavango. One of the consequents fo the plan is the ecotourism carrying capacities and limits of acceptable change of the Delta ecosystem.

The continued study of Delta is important as systems kept changing therefore continued understanding of the changing nature of the inland Delta would enable sustainable use of the Delta, which is very important for livelihoods.

Botswana’s tourism policy emphasizes the promotion of high cost, low volume tourism as an effort to limit ecological impacts of tourism. Eco-tourism projects through a programme known as Community Based Natural Resource Management (CBNRM) is developed to ensure local community participation in tourism and thus ensure custodianship to natural resources.

Tourism Products and Services in SADC Countries

The countries of SADC boast a wide range of environments, wildlife, a rich natural heritage/culture and an ideal climate. Some of these resources are cross boarder resources that provide a sound basis of their equitable exploitation, for shared prosperity.

Governments of the sub-region are committed to ensuring tourism development is carried out in a sustainable manner, which does not exceed carrying capacities, nor threaten the unique land and marine environment as well as the heritage/culture of the people of the region.

In Botswana the wildlife habitat is dominated by the Okavango Delta, which covers some 16,800 sq km and is a unique area of lagoons, reed-fringed waterways and islands. Other major attractions of Botswana’s pristine beauty can be found in the Kalahari Game Reserve, the Makgadikgadi Pans, the and the Tuli Block. The Tsodilo Hills are the site of an amazing collection of pre- historic art.

In addition to having a regional organisation (RETOSA) for tourism marketing, most of the countries in the SADC region have a range of strategic marketing initiatives that are undertaken to strengthen the position of their respective tourism industries in the source markets of Europe, North America and South East Asia

5 3. Industry Performance for the last five years and projections for the Future

Table 1 Regional Tourist Africa and Receipts Statistics

African Tourist Arrivals Change % Tourism Receipts Change% Regions (‘000) (US$ million)

2001 2002 2003 02/01 03/02 2001 2002 2003 02/01 03/02 Total Africa 29,248 29,902 30,834 2.2 3.1 1556 12,064 14,253 4.4 18.1 East Africa 7,312 7324 7796 0.2 6.4 2,498 2,502 2,751 0.2 10.0 Central Africa 614 633 685 3.1 8.1 244 313 335 28.0 7.0 North Africa 10,680 10,407 10,887 -2.6 4.6 4,437 4,410 4,718 -0.6 7.0 Southern 8,099 8,804 8,778 8.7 -0.3 3,157 3,496 5,006 10.7 43.2 Africa West Africa 2,543 2,734 2,689 7.5 -1.6 1,220 1,343 1,443 10.1 7.5 Source: World Tourism Orgnisation (WTO)

Tourism is expected to grow in the SADC sub region with the development of infrastructure and ecotourism approach. Airline capacities from Europe and Asia have increased substantially. This has encouraged tour operators in the source markets to expand their packages to the region. According to WTO’s Tourism 2020 Vision forecasts that international arrivals are expected to reach over one billion by the year 2010 and over 1.56 billion by the year 2020. International arrivals will more that double for the African continent to reach 47million in 2010 and will reach 77 million in 2020. Africa’s market share is forecasted to increase and to reach 5 percent in 2020.

With regard to Botswana tourist arrivals have grown considerably over the past five years, from 1, 048,845 in 2001 to 1, 034,871 in 2005. This represents an average annual growth rate of 3 percent over the period.

Tourism receipts have also increased significantly, and the latest figures show that tourist expenditure amounted to 1.8 billion Pula (US$356 million) in the year 2003. For the year 2004 and 2005 tourist expenditure is estimated at 2.2 billion Pula (US$410 million) and 2.6 billion Pula (US$473 million) respectively representing an average annual growth rate of 15.3 percent over the past five years.1

In terms of employment the tourism sector is estimated to have engaged 17, 000 people in core tourist facilities a large number of which will be in the Delta and Chobe region, and this figure will increase with a consideration for related sectors such as transport, agriculture, Immigration and others.

1 Figures for 2003 – 2005 are estimates based on past trends - Department of Tourism, Botswana

6 Table 2 Tourist arrivals in Botswana from the top ten countries:

Country/Year 1999 2000 2001 2002 2003

South Africa 39 3528 50 7610 47 8044 407 247 354 984 245 630 311 452 319 174 401 424 435 940 28 888 40 343 36 681 44 644 34 636 Namibia 39 952 40 429 36 681 34 814 29 415 USA 9 871 23 967 21 971 15 238 10 6546 UK 15 519 22 868 19 283 18 077 14 445 8 209 13 317 8 875 8 640 6 584 4 460 7 038 6 030 5 161 4 181 5 577 8 217 5 756 5 488 4 118 3 219 4 562 4 358 3 679 2 730 Other Countries 88 461 123 993 11 992 92 146 77 776

Totals 843 314 1 103 796 1 048 845 1 036 558 975 465 Source: Department of Tourism , Botswana

Tourist arrivals in Botswana

Year 2001 2002 2003 2004 2005 Totals 1 048 845 1 036 558 975 465 1 116 000 1 034 871 Source: Department of Toursim, Botswana

4. Constraints

• HIV/AIDS is one of the sub regions main challenges, which would negate all efforts directed to social and economic development

• SADC countries are a long haul destination for tourist

• The sub regional can only be serviced by international flights, which opens up the region for leakage. South African Airways is the only airliner with international flights

• Europe and America benefit the source market

• Image of Africa portrayed through television creates negative perceptions

• The perception about Malaria gives a bad image to the sub region

• The balance between high value and conservation makes the destination expensive

7 5. Development Needs For The Tourism Industry In SADC Region

SADC is currently collaborating with the Peace Park Foundation PPF) to develop Transfrontier Conservation Areas (TFCAs). TFCAs are protected areas that cut across boundaries of two or more countries It is therefore important that TFCAs are managed jointly. An inventory conducted by PPF has identified 22 potential sites. These sites are potential tourism cross boarder sites that offer opportunities for community based eco-tourism projects.

Within the framework for the agreement signed between WTO and SADC a special programme of Action for Southern Africa has been agreed to. Some programming ideas identified are: • Harmonisation of the classification of hotel standards for SADC region • Development of Tourism Satellite Accounts (TSA) • Training course on tourism statistics and • A study on the training of trainers in the travel and tourism sect for the sub region

The sub region is also in need of a regional marketing strategy as well as promotion of partnership with other regional and sub regional bodies. Other critical needs for the region are: • to develop research capacity on tourism. • Increase participation of SMEs, marginalized communities, youth and women in the tourism industry • Improve quality, competitiveness and standards of services and infrastructure of tourism industry

6. Role Of Information Communication Technology (ICT), Science And Research In Tourism

Information Communication Technology services promotes socio-economic development. Investment in ICT yields a good rate of return that provides one of the most effective means of economic empowerment. One glaring result is the emergence of small and medium service providers that can, with minimum investment provide service to the hitherto under-serviced areas.

Rapid adoption and internationalisation of ICT is imperative for continued positive impacts of Tourism. The region needs to address the issue of technology transfer as well as that of regional knowledge and technology sharing.

7. Conclusion

Southern Africa has been highly depended on the export of minerals. Therefore, the diversification of economic activities would benefit the SADC region tremendously, for this reason it will remain a guiding principle informing economic development goals for member States. The main economic activity that

8 the region is placing increased focus on is the Tourism as an important engine of economic growth for the region. In most SADC countries tourism is one of the largest foreign exchange earners. For example in Botswana it is the 2nd , Namibia it is the 2nd and Mauritius it is the 3rd and Tanzania it is the 1st biggest foreign exchange earner.

Southern Africa has by and large been depended on minerals. Minerals may not last forever therefore it is important to focus on other economic activities. Tourism promises to be one such engine of economic growth that requires the right infrastructure. The best support EU can provide to the region is not Aid, but rather support the development of : • Infrastructure – development of Parks, roads, water systems and airports • Training in tourism management • Airline assistance – e.g. support the purchase of bigger aircraft to reduce leakage and increase benefits for the sub region.

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