Tourism Statistics - Government of Botswana

BOTSWANA
STRENGTHENING TOURISM STATISTICS
AND FORMULATION OF AN
EXPERIMENTAL TSA - 2005/2006
October 2007

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TABLE OF CONTENTS
ABBREVIATIONS AND ACRONYMS ............................................................................................. 3
ACKNOWLEDGEMENTS ................................................................................................................ 4
EXECUTIVE SUMMARY ................................................................................................................. 6
1. INTRODUCTION ...................................................................................................................... 8
1.1 General Background for Botswana ............................................................................... 8
1.2 General Background on Tourism Satellite Accounts .................................................. 8
1.3 Introduction to the TSA Framework .............................................................................. 9
1.4 TSA Outputs ..................................................................................................................... 9
2. TOURISM CONSUMPTION IN BOTSWANA ........................................................................ 10
2.1 General ........................................................................................................................... 10
2.2 Inbound International Tourists ..................................................................................... 12
2.3 Domestic Tourists ......................................................................................................... 19
2.4 Resident Outbound Tourists ........................................................................................ 21
2.5 Tables 2 to 4 in the TSA ................................................................................................ 21
3. TOURISM SUPPLY IN BOTSWANA..................................................................................... 25
3.1 General ........................................................................................................................... 25
3.2 Tourism Characteristic Industries ............................................................................... 26
3.3 Production Accounts .................................................................................................... 26
4. ESTIMATION OF TOURISM VALUE ADDED .................................................................... 288
4.1 Reconciliation of Supply and Demand ...................................................................... 288
4.2 Measures of Tourism in Botswana .............................................................................. 28
5. EMPLOYMENT AND NON-MONETARY INDICATORS ..................................................... 322
5.1 Tourism Employment .................................................................................................. 322
5.2 Non-Monetary Indicators ............................................................................................ 322
6. CONCLUSIONS ..................................................................................................................... 34
6.1 Contribution to the Economy ....................................................................................... 34
6.2 Leakages and Linkages ................................................................................................ 34
6.3 Conclusions on the TSA Process .............................................................................. 355
6.4 The Way Forward ........................................................................................................... 36
ANNEX 1: TERMS OF REFERENCE ............................................................................................ 37
ANNEX 2: TSA DEFINITIONS ....................................................................................................... 38
ANNEX 3: VISTOR SURVEYS ...................................................................................................... 41
ANNEX 4: SAME-DAY VISITORS – INTERNATIONAL INBOUND ........................................... 455
ANNEX 5: TOURISM CHARACTERISTIC PRODUCTS AND ACTIVITIES ................................. 49
ANNEX 6: BASIC PRICES AND PURCHASERS’ PRICES ....................................................... 500
ANNEX 7: SUPPLY AND USES OF GOODS AND SERVICES ................................................. 511
ANNEX 8: DEFINITIONS IN TOURISM ...................................................................................... 522
ANNEX 9: DETAILING THE DEFINITIONS ................................................................................ 533
ANNEX 10: TRAVEL CREDIT & DEBIT ACCOUNT .................................................................... 54
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ABBREVIATIONS AND ACRONYMS
BOB
Bank of Botswana
COICOP Classification of Individual Consumption by Purpose
CSO
Central Statistical Office
DOT
Department of Tourism
GDP
Gross Domestic Product
GFCF Gross Fixed Capital Formation
HATAB Hospitality and Tourism Association of Botswana
ISIC
International Standard Industrial Classification of all Economic Activities
NPISH Non Profit Institutions serving Households
OECD Organisation for Economic Cooperation and Development
RSU
Research and Statistics Unit of the Department of Tourism
SNA 1993 System of National Accounts 1993
TGDP Tourism Gross Domestic Product
TOR
Terms of Reference
TVA
Tourism Value Added
UB
University of Botswana
UNSC United Nations Statistical Commission
UNDP United Nations Development Programme
UNWTO United Nations World Tourism Organization
WTTC World Travel and Tourism Council
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ACKNOWLEDGEMENTS
The project team would like to express its sincere thanks and appreciation to the following for their
valuable collaboration, guidance and support:
Ministry of Environment, Wildlife and Tourism:
H.E. Mr. Onkokame Kitso Mokaila, Honourable Minister
Dr. Lucas P. Gakale, Permanent Secretary
Mr. Edmont Bagaketse Moabi, Deputy Permanent Secretary
Department of Tourism, Ministry of Environment, Wildlife and Tourism:
Ms. Kelebaone G. Maselesele, Director of Tourism
A special word of thanks and praise should be accorded to Mrs. Temalo M. Lesetlhe, Director of
Research and Statistics Unit of the Department of Tourism, and her team, for all their hard work
and assistance which culminated in this first TSA for Botswana.
United Nations Development Programme:
Ms. Viola Morgan, Resident Representative
Mr. Sennye Obuseng, National Economist
World Tourism Organization (UNWTO):
Mr. Francesco Frangialli, Secretary-General
Dr. Harsh Varma, Director of Development Assistance
Ms Vanessa Satur, Project Coordinator, Department of Development Assistance
The project was undertaken by the following consultants:
Mr. Kevin Millington – Team Leader
Mr. David McEwen – Statistics Expert
Ms. Marion Libreros – TSA Expert
Mr. Joe Heym – Database Expert
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Ngoma Causeway
Photo 1: Cooperation between the Department of Immigration and the Research and Statistics
Unit of the Department of Tourism at Pioneer Gate – an illustration of the countrywide cooperation
that took place in the UNDP/ UNWTO project.
Photo 2: Interviewer Training at the Research and Statistics Unit of the Department of Tourism in
Gaborone – an illustration of the substantial effort that has to be put into securing primary
statistics. Trying to develop capacity to collect, compile and analyse primary statistics has been a
focus of the UNDP/ UNWTO project.
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EXECUTIVE SUMMARY
1. Introduction
In 2004, a UNWTO executed project Strengthening Tourism Statistics in Botswana commenced.
Its ultimate aim was to develop the first Tourism Satellite Account (TSA) for Botswana. However
the TSA was not the only goal of this project. Over its duration the following significant milestones
have been achieved:
The process for measuring monthly accommodation statistics has been improved and
upgraded. Data is now analysed and published within two months of the period for which
it is collected.
The annual visitor survey that is used to measure tourism expenditure has been improved
to provide more useful information on the economic impact of tourism in Botswana.
The national tourism statistics database has been revised to ensure it can process these
statistics efficiently, and provide reports that are useful for all the relevant stakeholders. At
the same time training has been provided in methods for extracting, processing and
presenting tourism statistics.
A five-year statistics bulletin for the period 2001-2005 was published.
However, all of these procedures have also been implemented with the ultimate goal of developing
Botswana‟s first TSA, following the principles set out in the UNWTO‟s System of Tourism Statistics
(STS).
2. Recommended Methodological Framework (RMF) for the Experimental TSA
With regard to this Experimental TSA, every attempt has been made to follow the concepts set out
in the TSA: RMF published in 2001 by UNWTO et alia. It should be emphasised that the UNWTO‟s
TSA: RMF focuses upon a statistical process involving the systematic collection and compilation of
primary statistics, including sample surveys. It does not focus on economic modelling aimed at
using econometric equations for developing estimates of tourism statistics.
The benefits of using a UNWTO statistical process are that it involves a large number of
institutions in Botswana, as well as individual professionals within these institutions, cooperating
and working together to attempt to build up a statistical database that will help with key economic
decision-making for this important industry within Botswana. It is reasonable to say that the
cooperation has been excellent, both with the Reference Group (DOT, Bank of Botswana, Central
Statistics Office, and University of Botswana) and with others, e.g. HATAB (Hotel and Tourism
Association of Botswana).
In this cooperative environment the UNWTO/UNDP project has attempted to build statistical
capacity within the DOT with direct hands-on training. The intention, apart from trying to compile
accurate, coherent and transparent statistics, is to set up the TSA as an ongoing work in progress
that can be amended, modified, and enhanced to incorporate more economic information on
tourism. Also, being a statistical process, it can be implemented by DOT and key collaborating
institutes in Botswana directly, without the need for outside expertise, as would probably be
necessary in an economic modelling process such as those used by other agencies.
3. Key Statistical Inputs to the TSA
The range of statistics that have been used as inputs into the TSA process has been extensive.
The DOT has provided the Tourist Arrival Statistics, the Tourism Accommodation Statistics, and
the Sample Surveys of Visitors, Tour Operators and Tourism Suppliers. The CSO has provided a
very wide range of material from the National Accounts, the Household Income and Expenditure
Surveys, the Labour Statistics, the Transport Statistics, the Foreign Trade Statistics, the Informal
Sector Survey and the Social Accounting Matrices and others. The BOB has provided statistics on
the travel and transport accounts and the Balance of Payments. Further data came from the
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Botswana Unified Revenue Service, HATAB, Government Budget and private sector
organisations, and indeed some econometric information from outside Botswana.
Despite this extensive range of statistics it has been necessary to work with anecdotal information
as well, especially in relation to private sector activities. Where improvements could be made in
forthcoming years are with respect to: -
More statistical information on private sector activities, in particular the numbers of
tourists coming on package tours to Botswana would be helpful. Breakdowns on how
part of the package tour price is spent in Botswana would also improve the TSA process.
It is recommended that HATAB along with DOT be a key player in obtaining such
information.
Information on domestic tourism, not only by households (to be picked up next year by
DOT in cooperation with CSO in a Household Survey) but also domestic tourism by
Government staff and by businesses is needed. It is recommended that the DOT add an
accommodation sample survey to their accommodation statistics process.
It is recommended that the updating of the Social Accounting Matrix by the CSO be built
into their programme. It is a major exercise but one that would be highly valuable for the
TSA process, and one that could be achieved following the important sample surveys
that are being carried out by CSO currently and in the next couple of years.
4. TSA Outputs
Following meetings with the Reference Group, it was decided to attempt an Experimental TSA for
the Year 2005/2006 in order to try and make it as up-to-date as possible, taking into the account
the good availability of National Accounting Data from the CSO. It is worth remarking that few
countries, even statistically advanced countries, have attempted to bring the UNWTO TSA to so
recent a date.
The UNWTO TSA process is not in itself an economic impact/policy study. Its focus is on providing
statistical input for economic decision-making with respect to the tourism sector. However, a few
key observations can be made: -
Tourism’s Contribution to GDP in Botswana
The TSA process indicates that TVA (Tourism Value Added) in 2005/2006 is around P1.9 billion.
Comparisons with the Gross Value Added in the National Accounts for 2005/2006 of P54.8 billion
(provisional figures) show that the Direct Contribution of the Tourist Expenditure (consumption) is
around 3.4% to Botswana‟s GDP.
It should be emphasised that this is the direct contribution and there are further indirect
contributions that can arise from value added by suppliers to the tourism industry, who have no
direct connection with the tourist, himself/herself.
Indirect contribution can vary substantially, and can lie usually anywhere between 25% and 75% of
the direct contribution. If this were to apply in Botswana, it might be that the direct + indirect
contribution would lie between 4.2% and 6.0%. These contributions relate to the impact of the
expenditure/consumption.
Tourism Employment in Botswana
CSO have indicated that the level of employment in the Hotels and Restaurants exceeds 11,000 in
2004. Not all such employment is associated with tourism expenditure, but then expenditure by
tourists outside of Hotels and Restaurants will broadly offset the non-tourist expenditure.
Employment at more than 11,000 is highly significant exceeding employment in Mining and
Quarrying, in Transport and Communications, and in Finance.
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1. INTRODUCTION
1.1 General Background for Botswana
Tourism is seen as an important sector in the economy of Botswana providing jobs, local incomes
and making contributions to Government revenues. In recognition of this importance though
lacking any objective measurement of it, the Government of Botswana decided to strengthen the
process of collecting tourism statistics, and embarked upon measures to analyse the economic
contribution of tourism with a view to underpinning a series of forthcoming strategies and policies
for the development of tourism in the country.
Central to this initiative has been the Research and Statistics Unit (RSU) of the Department of
Tourism (DOT). The RSU, as part of a UNDP/UNWTO project, has been strengthening the
process of all the tourism statistics in Botswana including arrival statistics, accommodation
statistics, statistics on visitors to the National Parks, sample surveys of visitors, and other surveys
concerned with trying to improve the Government‟s understanding of the tourism industry.
As a follow-on to the improvements in the tourism statistical processes, the DOT has taken the
step of putting together this „Experimental Tourism Satellite Account‟, following the methodology
recommended by the UNWTO and endorsed by the UN Statistical Commission, the Organisation
for Economic Cooperation and Development (OECD) and the European Commission through
Eurostat. The DOT has been assisted in this endeavour by a Reference Group within Botswana
that has included the Central Statistics Office (CSO), the Bank of Botswana (BOB), and the
University of Botswana (UOB). Many other organisations within Botswana also contributed to the
work, including the private sector. The efforts of so many organisations have been much
appreciated by the DOT.
1.2 General Background on Tourism Satellite Accounts
Virtually all countries throughout the world have National Accounts in which the main economic
aggregates have been measured/ estimated, such as, for example, Gross Domestic Product
(GDP), value-added by different industries, intermediate consumption by different industries etc.
However, such aggregation has not been possible for tourism within the National Accounts,
although it is often done for hotels and restaurants, a key part of the tourism industries, because
tourism is primarily a demand side phenomenon, that is determined by the expenditure associated
to those identified as visitors whereas Value Added and GDP are measurements associated with
productive activities. The concept of Tourism Satellite Accounts (TSA) was put forward to remedy
this lack of economic data on tourism. In a TSA, demand/ consumption of tourism, a standard
measurement of visitor expenditure, is identified, associated to the industries that serve them, and
the value-added arising from that expenditure for the different industries that serve visitors can
then be compiled and added together to establish tourism value added.
The methodology for the TSA is set out in the UNWTO Manual known as TSA: RMF 2001 (RMF =
Recommended Methodological Framework). Two key tenets of this methodology are, firstly, that a
uniform methodology allows valid comparisons, enabling the tourism value-added to be compared
with the value-added in other industries and also allowing comparisons with other countries to be
made on a like-for-like basis. Secondly, a key tenet is that the information on demand by visitors
(that can encompass both tourism products and non tourism products) is reconciled with the
information on supply of these goods and services in the economy.
In the course of this exercise the DOT has attempted to follow the general guidelines set out in the
TSA: RMF, a Manual prepared under the auspices of the UNWTO which has given a forwardlooking
guide for countries to follow in these endeavours.
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1.3 Introduction to the TSA Framework
The conceptual framework of the TSA is set out in the TSA: RMF published by the UNWTO,
OECD and the European Commission in 2001. Its key aspects are reiterated here and can be
seen in detail in Chapter Four in the TSA: RMF document.
The methodological framework for the elaboration of the TSA is made up of a set of definitions and
classifications integrated into tables and organised in a logical consistent way. It allows the whole
magnitude of tourism in both its aspects of demand and supply to be seen. The Ten Tables which
comprise the satellite account are derived from or related to the tables of the 1993 SNA that
concern the supply and use of goods and services. They are at the centre of international
comparisons of the economic importance of tourism between economies.
The minimal set of tables required to speak of a system of satellite accounts comprises Tables 1 to
6 and Table 10. Accounts that concentrate solely on visitor consumption or solely on the supply by
tourism industries and other industries do not qualify as tourism satellite accounts. At a minimum
the TSA must include a detailed presentation of supply and consumption, in terms of goods and
services consumed by visitors and the activities that produce them, as well as an overall
confrontation of their corresponding aggregates, which is at the core of the TSA system.
Figure 1.1 – The Ten Tables of the TSA
Table 1
Inbound
Table 2
Domestic
Table 3
Outbound
Table 5
Production
Table 7
Employment
Table 8
Capital
Table 9
Collective
Table 10
Indicators
Table 4
Internal
Table 6
Domestic
Supply &
Consumption
1.4 TSA Outputs
TSA: RMF suggests the following as a set of relevant indicators of the size of tourism in the
economy:
Internal tourism consumption (in cash and in kind);
Value added of the tourism industries;
Tourism value added; and
Tourism GDP.
Tourism value added and Tourism GDP provide measures of the economic importance of tourism
in the same sense as the GDP of any productive activity does. They are indicators emanating from
a reconciliation of tourism consumption and supply. Their values will depend in particular on the
completeness of the scope of measurement of visitor consumption that a country adopts, and on
the country‟s ability to assign visitor consumption to the industries that serve the visitors.
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2. TOURISM CONSUMPTION IN BOTSWANA
2.1 General
The TSA: RMF makes it very clear as to how visitors should be viewed. The visitor is a particular
type of individual consumption unit, who is distinguished from other individuals by the fact that
he/she is outside his/her usual environment and travels or visits a place for a purpose other than
the exercise of an activity remunerated from within the place visited. Otherwise he/she behaves
like an ordinary consumer, so that the characteristics of consumption activity described in the SNA
1993 are also relevant for visitors. The distinction between a visitor and a non-visitor can be
almost impossible to discern from the viewpoint of a supplier, and this is one of the key difficulties
in compiling primary statistics for the TSA, that need to be based on information provided by the
travellers themselves.
Box 2.1: Concept of Usual Environment - UNWTO
The concept of usual environment, and therefore tourism, has two dimensions. The first is
frequency. Places which are frequently (on a routine basis) visited by a person are part of the
usual environment of that person, even though these places may be located at a considerable
distance from the place of residence. The second dimension is distance. Places located close to
the place of residence are also part of the usual environment even though the actual spots are
rarely visited. Therefore the usual environment consists of a certain area around the place of
residence plus all places visited rather frequently.
…there is no single operational definition of „usual environment‟ that can be applied all over the
world …. countries should look for a practical definition that excludes virtually all routine travel of
their residents and travel to places very close to the usual place of residence from tourism.
Internal tourism consumption, that is the consumption activity of visitors within a country, includes
the consumption of the following individuals:
Inbound international visitors, staying overnight (and thus being international
tourists) – travelling for the purposes of holiday, business, VFR and a number of other
tourism purposes, but particularly excluding visitors being remunerated from within
the country visited;
Inbound international visitors, not staying overnight, and thus being same-day
visitors, but nonetheless travelling outside their usual environment. However,
individuals coming into the country in order to make purchases of goods to sell back
in their country of origin should be excluded;
Domestic visitors staying overnight - travelling for the purposes of holiday, business,
VFR and a number of other tourism purposes. Visiting one‟s second home is seen as
a tourism purpose;
Domestic visitors, not staying overnight, and thus being same-day visitors, but
nonetheless travelling outside their usual environment; and
Residents on an outbound trip, who spend something within their country of
reference whilst being on an outbound trip – for example, pre-trip expenditure of
things to bring along or use on the trip, transportation using a resident carrier, using
the services of a resident travel agency, etc.
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Internal tourism consumption is seen as including a number of categories of expenditure that will
need to be estimated separately:
Those acquired through direct expenditure by the visitors themselves;
Those imputed to them (consumption for own final use);
Those obtained from other institutional units as transfers in kind other than social
transfers in kind;
Those acquired as social transfers in kind from NPISH;
Those acquired as social transfers in kind from the Government; and
Those acquired for their benefit by businesses and that these businesses consider as
part of their costs (intermediate consumption): transportation, accommodation costs
paid for by businesses.
Measuring tourism within Botswana is a very substantial task because of the physical size of the
country and the large number of border posts (for the measurement of international tourism). More
than this, most of the border posts are road border posts involving a substantial level of cross
border travel. Many Government Departments have had to contribute to this task of putting
together tourism statistics.
Figure 2.1: Botswana Border Posts
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Estimates of internal tourism consumption have been put together based upon:
Inbound International Visitors;
Domestic Tourists; and
The domestic component of an outbound trip by Botswana residents.
Each of these components is discussed in the following sub-sections.
2.2 Inbound International Tourists
The expenditure by Inbound International Tourists can be divided into:
Expenditure by tourists themselves in Botswana, on which they can report;
Acquisition of tourism and other services by Tour Operators spending in Botswana on
behalf of tourists, from the money already paid to the tour operator (or travel agency, or
ground operator) by the tourist as part of the package tour price; and
Expenditure by Same-day visitors who are coming across the border and not staying the
night.
Each of these is reported upon in the next sub-sections. There are other expenditures that need to
be estimated from other sources but these are not included for the time being.
2.2.1 Direct Spending by Tourists themselves
The Visitor Arrival Statistics, from CSO/DOT, based upon the entry/departure cards (E/D Cards)
collected by the Department of Immigration at the border posts indicate the numbers of people
entering and leaving Botswana. From this information tourist arrivals have to be derived, taking out
returning residents and various other categories of border entrants that are not included in the
Inbound Tourist statistics.
Definitions of Basic Tourism Units (from UNWTO) are shown in
Annex 8. Details of some of these definitions are given in Annex 9.
This gives an indication of the complexities in deriving information
on tourist arrivals.
Since Botswana has a large number of road border posts (24) as
well as several airports (4), the collection of such statistics is a
major operation requiring considerable cooperation between
several Government Departments.
Cooperation has been good both, inter alia, for the collection of
tourist arrival statistics and for the visitor sample surveys carried
out by DOT. The DOT published the tourism statistics for the
period 2001 to 2005 in a publicly available document as shown in
Figure 2.2.
Figure 2.2 – Tourism Statistics Publication
The tourist arrivals for 2001 – 2004 are shown in Table 2.1. A substantial increase in tourist
arrivals in 2005 and in 2006 is anticipated. Provisional Figures for 2005 are 1.675 million. One
cannot understate the significance of the two neighbouring countries of South Africa and
Zimbabwe. An exceptional situation exists with Zimbabwe, generating travel that has a complex
mix of motives. Numbers are large and most travel is through the border post of Ramokgwebana.
The proximity of the major towns/ cities in South Africa such as Mafeking, and also Pretoria and
Johannesburg, together with family ties and commercial ties across the borders, inevitably results
in substantial international travel. This includes cross-border travel, some of which will be within
the „usual environment‟ and thus should not be counted as tourism.
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Table 2.1: Tourist Arrivals by Country of Residence (Overnight Visitors)
Residence 2001 2002 2003 2004
Africa South Africa 557,747 527,505 514,708 626,207
Zimbabwe 354,230 454,847 550,994 576,328
Namibia 50,251 64,001 69,587 57,542
Zambia 41,430 25,637 83,588 72,492
Americas USA 21,619 16,322 15,087 17,670
Canada 2,632 1,932 2,065 2,811
Far East Australia 5,669 5,728 5,708 5,595
Japan 3,144 2,281 2,492 2,518
Europe UK 18,486 20,548 18,518 24,069
Germany 9,170 9,985 10,444 9,685
Netherlands 6,342 6,377 6,146 4,929
France 4,381 3,596 3,732 3,989
Italy 3,087 2,323 2,782 3,196
Total 1,193,399 1,273,814 1,405,985 1,522,847
Source: Tourism Statistics 2001-2005, Department of Tourism
Tourist arrivals give an indication of numbers coming into Botswana but these numbers have to be
converted into tourist expenditure. This requires information on how long visitors are staying in
Botswana and how much they are spending in Botswana, as well as a breakdown of what
products they are spending on.
Visitor Surveys play the key role in estimating this information (See Annex 3 – Visitor Surveys).
Key information from the Visitor Surveys on these three variables is set out below.
Average Length of Stay
Because a total figure for tourist arrivals embraces such a wide range of different types of visitor,
many of them undertaking different activities and staying for varying periods, it is best to try to
segment this total in various ways. „Country of residence‟ and the „purpose of visit‟ have been
looked at in particular. Average length of stay varies according to the purpose of visit. Examples
include some transit visitors who are staying for only a
night whilst holiday visitors can be staying for nearly six
nights on average. For our reference year of 2005/2006
an average for the length of stay between the sample
survey data for the Year 2005 and the Year 2006, as
shown in Annex 3 - Table A3.1, has been adopted.
In order to use figures with a lower relative sampling
error, the sample data has often been brought together
into larger groupings. The relative sampling error (the
standard error times 1.96 – 95% confidence level) has
been calculated as a percentage of the arithmetic mean.
Photo 3: Interviewing at Tlokweng Gate
Average Direct Expenditure per Day
Expenditure data has been gleaned from the DOT visitor surveys for 2005 and 2006. In a similar
manner to the „length of stay‟, for our reference year of 2005/2006, An average for the „expenditure
per day‟ between the sample survey data for the Year 2005 and the Year 2006 has been adopted.
Using the „country of residence‟ and the „purpose of visit‟ as a way of segmenting the total figures
allows one to take into account the considerable disparity in „length of stay‟ and „expenditure per
day‟ between individual tourist arrivals. The base figures for expenditure per day are shown in
Annex 3 - Table A3.2. Ideally it is „good practice‟ to focus upon expenditure with relative sampling
errors below 25%, but this has not always been possible in this process.
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Total Direct Spending for Overnight Visitors in 2005/ 2006
The Total Direct Spending by visitors for 2005/2006 is then estimated by multiplying the spend per
day by the average length of stay by the number of tourist visitors. This total does not include the
spending on their behalf by tour operators/ ground operators/ travel agents etc.
Table 2.2: Total Direct Spending for Overnight Visitors in 2005/ 2006
Total Number of Tourist Arrivals 2005/06 1,759,000
Average Length of Stay
5.3 nights
Average Expenditure per Day 270
Total Direct Expenditure P million 2517
Source: Derived from DOT Arrival Statistics and Visitor Surveys
The total direct spending is estimated at Pula 2,517 million for 2005/06.
In reviewing the markets, as shown in Table 2.3 and Figure 2.2, the significance of the
neighbouring countries is apparent, but the above figures do not include tour operator spending on
behalf of tourists.
Table 2.3: Total Direct Spending for Overnight Visitors in 2005/ 2006 by Market
Country of
Residence
Proportion of
Total
Arrivals
Average
Length of
stay – Nights
Average
Direct
Expenditure
per day –
Pula
Total Direct
Spend
P Million
Proportion of
total direct
spend
Australia 0.37% 8.5 580 31.9 1.3%
France 0.26% 7.7 513 18.3 0.7%
Germany 0.64% 7.8 474 41.6 1.7%
Namibia 3.78% 3.6 279 66.1 2.6%
South Africa 41.12% 3.6 333 872.9 34.9%
UK 1.58% 8.2 567 128.4 5.1%
USA 1.16% 8.8 591 106.7 4.3%
Zambia 4.76% 5.0 408 170.9 6.8%
Zimbabwe 37.85% 5.9 149 581.4 23.3%
Other 8.49% 11.0 293 481.7 19.3%
Total 100.00% 5.3 270 2,499.8 100.0%
Adjustment 17
Source: Derived from DOT Arrival Statistics and Visitor Surveys
It is interesting to observe that although South Africa and Zimbabwe represent almost 80% of
arrivals, the percentage is much lower in terms of total direct spend (somewhat less than 60%),
because their average length of stay and their average expenditure per day is notably lower.
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Figure 2.2 – Direct Expenditure by Source Market
DIRECT EXPENDITURE FROM SOURCE MARKET
Australia France Germany
Namibia
Other
South Africa
Zimbabw e
Zambia
USA
UK
Australia France Germany Namibia South Africa UK USA Zambia Zimbabw e Other
Breakdown of the Visitor Spending
Sample estimates of the breakdown of overnight visitor expenditure are obtained from DOT visitor
surveys in 2005 and in 2006. The key feature of these breakdowns is that this is the expenditure
by the tourist himself or herself.
The breakdowns of expenditure and the figures adopted for 2005/2006 are shown in the Table 2.4
below. These figures derive from the respondent‟s view on how much he spent on the different
categories of expenditure.
Table 2.4: Breakdown of the Direct Spending by Overnight Visitors in Botswana – 2005/06
Adopted for
2005/2006
Direct Spend
P millions
Money Spent on Accommodation 33% 831
Money Spent on Meals and Drink 11% 277
Money Spent on Transport 7% 176
Money Spent on Recreation 7% 176
Money Spent on Shopping 16% 403
Money Spent on 'Other' Spending 26% 654
Total 100% 2,517
Source: DOT Visitor Surveys
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Figure 2.3: Breakdown of the Direct Spending by Overnight Visitors in Botswana 2005/06
26% Accommodation
33%
Meals & Drinks
Local Transport
Recreation
Shopping
16%
11%
'Other'
7% 7%
2.2.2 Adding Tour Operator Spending on Behalf of Tourists
Expenditure by tour operators in Botswana on behalf of tourists is a part of overnight visitor
expenditure (i.e. Inbound Tourism Expenditure) as required in Table 1 of the TSA. The TSA: RMF
does not tabulate it as a separate component but as a part of overnight visitor expenditure.
Botswana has developed a substantial tour operating business, much admired in other tourist
destinations. Many leading tour operators in the country are members of HATAB (Hospitality and
Tourism Association of Botswana), the coordinating body for the industry.
Photo 4: Mowana Lodge – HATAB Forums
Even though HATAB has some excellent
industry forums (See Photo of Mowana Lodge
Forum, April 2007), business statistics on the
tour operating/ ground operating businesses
are minimal. As a consequence, it has been
necessary to put together a reasonable
supposition based upon what information
could be obtained from sample surveys (Visitor
Surveys, Tour Operator Survey, Supplier
Survey carried out by DOT) and from
anecdotal information in order to reach
estimates for the numbers of package tours
and the subsequent spending by tour
operators on behalf of tourists in Botswana.
16

Adding in the Tour Operator Spending on behalf of tourists
Separate estimates have been made for the tour operator spending on behalf of tourists, as shown
in Table 2.5. These are added together with the direct spending by the tourist him/herself and this
gives the totals in Table 2.6.
Table 2.5: Breakdown of Spending in Botswana by the Tour Operator
Percentage
Breakdown
Expenditure for
2005/2006 P million
Money Spent on Accommodation, Food and Drink 41% 197
Money Spent on Local Transport 17% 82
Money Spent on Recreation (e.g. Park Fees, inter alia) 9% 43
Money Spent on 'Other' Spending 18% 87
Mark-Up for Tour Operator for own costs 15% 72
Total 100% 481
Table 2.6: Total Spending 2005/2006 – Direct Tourist Spending plus Spending by Tour
Operators on Tourists’ behalf
Direct Spend
P millions
Tour Operator
Spending
P millions
Total Spending
P millions
Money Spent on Accommodation 831 197 1,028
Money Spent on Meals and Drink 277 277
Money Spent on Transport 176 82 258
Money Spent on Recreation 176 43 219
Money Spent on Shopping 403 403
Money Spent on 'Other' Spending 654 159 813
Total 2,517 481 2,998
A best estimate is that the total of tourist expenditure (staying overnight visitors) is around P 3
billion in Botswana in 2005/2006.
2.2.3 Same-Day Visitor Spending
Same-day travel is important for Botswana but a good part of it will not be tourism. Rather it will be
cross-border travel within the „usual environment‟. Details of the estimate are shown in Annex 4.
The key feature of these breakdowns is that the Same-Day Visitors into Botswana are not
spending on the usual tourism services – accommodation, meals and drinks, transport, recreation
- or hardly at all. They are spending on „shopping‟ and on „other‟ items, which appear to
encompass a whole range of other goods and services – see Table 2.7.
Table 2.7: Breakdown of the Total Spending by Same-day visitors in 2005/ 2006
Percent Total Spend
P million
Money Spent on Accommodation 2.5% 1.58
Money Spent on Meals and Drink 3.3% 2.08
Money Spent on Transport 2.5% 1.58
Money Spent on Recreation 0.5% 0.32
Money Spent on Shopping 63.2% 39.82
Money Spent on 'Other' Spending 28.0% 17.64
Total 100.0% 63.00
17

Figure 2.4: Breakdown of the Same-day Visitor Spending in Botswana 2005/06
DAY VISITOR EXPENDITURE BREAKDOWN
28%
3% 3% 3% 1%
62%
Money Spent on Accommodation
Money Spent on Transport
Money Spent on Shopping
Money Spent on Meals and Drink
Money Spent on Recreation
Money Spent on 'Other' Spending
Even though Same-day visitors are not staying the night, some do hire tourism accommodation for
the day.
The expenditure by the three components of Inbound International Tourists, namely:
Expenditure by tourists themselves in Botswana;
Tour Operators spending in Botswana on behalf of tourists; and
Same-day visitors.
Make up of Table 1 of the TSA, as shown below.
Expenditure by others on their behalf and estimated services provided on own account (second
homes) are not included.
18

TSA TABLE 1- Inbound tourism consumption by products and categories of visitors –
Botswana 2005/2006
(visitor final consumption expenditure in cash) (net valuation) – P millions
Same-day visitors Tourists Total visitors
Products (1.1) (1.2)
(1.3) = (1.1) +
(1.2)
A. Specific products
A.1 Characteristic products
Accommodation 2 1,028 1,030
Food & Drink 2 277 279
Transport 1 258 259
Recreation 219 219
Tour Operator (Margin) 72 72
A.2 Connected products
Shopping 40 403 443
B. Non specific products
Other Spending 18 741 759
TOTAL 63 2,998 3,061
number of trips 213,000 1,759,000
Sources: Derived from DOT & CSO Arrival Statistics, DOT Visitor Surveys, Tour Operator Survey
2.3 Domestic Tourists
number of overnights 9,300,000
Measuring Domestic Tourism Consumption requires considerable sample survey data upon
household travel (making same-day trips, making tourist trips staying overnight, and making trips
abroad whether same-day or staying). It also requires considerable data upon business travel by
private sector companies and considerable information on travel by Government institutions
including parastatals. Currently this information is not available in Botswana, though it is intended
to extend the Household Survey next year (2008) to ascertain more information on residents‟
travel habits. In the absence of this detailed information broad estimations of Domestic Tourism
Consumption from different sources have been put together, as proxies for the actual statistics.
It is necessary to look at Domestic Tourism Consumption from three key sources, namely:
Households;
Government (Central and Local); and
Businesses.
Information from the following has been taken into account, namely the Household Income and
Expenditure Surveys (HIES), the Government Budgets and the National Accounts Data.
Overall, the HIES results in 2002/2003 do lead to the view that domestic household consumption
of „hotels and restaurants‟ will be lower than the domestic consumption by businesses
(intermediate consumption) and the domestic consumption by Government. This broadly confirms
observation in tourism accommodation.
There are no figures on Government Consumption of Hotels and tourism related products. Within
the Government budget the following have been identified:
(1) Internal Travel;
(2) External Travel, and
(3) Expenditure on Councils, Exhibitions and Conferences.
19

Whilst P 0.9 billion is the Government budget for (1) and (3) above for 2006/2007, the precise
content of this expenditure is not clear.
Similarly with Businesses there is no allocation of intermediate consumption towards Hotels and
Restaurants. Some 3% to 4% of intermediate consumption within the economy is not implausible.
The balance between these different sources has been adapted from the Social Accounting Matrix
for Botswana from 1996/97. There, the Absorption Matrix indicated that the total supply of the
commodity, „Hotels and Restaurants‟ was used in the following manner: -
Commodity Absorbed by: P million 1996/97 Percentage
Households 59.0 11.8%
Exports 210.9 42.3%
Productive Activities – Intermediate Consumption 120.7 24.2%
Central and Local Government 108.0 21.7%
Total Output 498.6 100.0%
Source: Social Accounting Matrix 1996/97
The above has been adapted on anecdotal evidence to the figures below.
Households Businesses Government Exports Total
Breakdown 5.0% 28.0% 25.0% 42.0% 100.0%
Turnover in
Hotels and
Restaurants P.
million 204.1 1,143.0 1,020.6 1,714.5 4,082.2
But only a proportion of this turnover is associated with tourism. Also the turnover has to be
divided between hotels themselves and restaurants. There are number of guideposts to the
possible scale and composition of components of the hotel and restaurant trade. These are: -
The turnover established through the National Accounts procedures (P4.1 billion in
2005/06);
The balance between domestic arrivals and foreign arrivals at hotels (35:65 in 2005);
The earnings that can be obtained from the capacity in tourism accommodation (nearly
8,000 beds);
The data from the Government Budget;
Information on business operations; and
Information on hotel and restaurant operations.
In relation to the figure for hotel and restaurant turnover of more than P 4 billion in 2005/06, to find
a reasonable fit with this information it has been necessary to assume that the hotel: restaurant
split is around 39:61 and also to assume that the non-tourism component is up towards 20% for
the hotels and over 70% for the restaurants.
Putting together estimates such as these, which could be described as broadly plausible, is a
temporary measure in order to find reasonable orders of magnitude. A key issue is that using
information from both the demand side and the supply side compromises the independence of the
approaches and any subsequent reconciliation of data on demand and supply. However in the
absence of more information this has been necessary.
20

2.4 Resident Outbound Tourists
The information from the Bank of Botswana indicates the following for 2005/2006: -
Period Travel P ‘000 Transport P ‘000
Credit Debit Credit Debit
2005 Q3 360,723 60,602 41,468 65,177
Q4 383,770 75,184 61,726 506,248
2006 Q1 15,703 71,992 64,941 71,441
Q2 381,529 58,460 44,218 81,387
Total 1,141,725 266,238 212,353 724,253
Source: Bank of Botswana
Travel Credits totalled some P1.1 billion, and transport credits a further P 0.2 billion, making P1.4
billion altogether. These figures reflect foreign transactions within the banking system. Because
there are so many ways to make foreign exchange transactions, these figures tend to understate
the inbound tourism expenditure. The figures since the Year 2000 are shown in Annex 10.
For outbound tourism spending, the figures indicate more than P 0.9 billion of which the majority is
in the transport account. The domestic component of spending on trips abroad appears unlikely to
exceed a substantial percentage addition because Botswana‟s airlines tend to deal with domestic
flights and short-haul international flights. Tour operations and travel agency operations (as
margins) are relatively modest in volume for outbound tourism. As a notional order of magnitude
for the domestic component of trips abroad, one may be talking of 5-10%. In the context of the
figures above, An arbitrary figure has been used, making it the same as the tour operator margins
on the inbound tourism expenditure (P 72 million).
For the estimate of outbound tourism spending the BOB figures have been used from the debits
for travel and transport as a broad order of magnitude, giving a figure of P 990 million.
2.5 Tables 2 to 4 in the TSA
In putting together Table 2, it has not been possible to make an estimate of same-day tourism
domestic trips outside of the „usual environment‟.
There is a lot of domestic travel in Botswana, because the population moves for the purpose of
finding work but is still travelling back to its traditional homelands or to see family and friends. The
population does not see this travel as tourism. Given its frequency, it is questionable where to
draw a line between what is tourism and what is not. Also some of the population own or rent a
house where they work (e.g. Gaborone) but also have a house back in their home town or village.
Going between their house in their home village and their house where they work is frequent but
not seen as tourism by the local people.
However, in terms of tourism analysis, the house in their home town or village to which they travel,
frequently or not frequently, can be viewed as a second home. Visits to second homes are
considered as tourism, irrespective of the distance to the usual place of residence and the
frequency of the visit.
A breakdown of domestic tourism expenditure beyond the spending in hotels and restaurants has
not been possible. The balance between domestic expenditure on accommodation and on food
and beverage reflects the significant level of travel to visit friends and relatives.
With these reservations, estimates have been entered into Table 2 (Domestic Tourism Spending)
and Table 3 (Resident Outbound Tourism Spending) and then adding together Tables 1 & 2, one
obtains Table 4 which is described as Internal Tourism Consumption.
21

TABLE 2 - Domestic tourism consumption by products and sets of resident visitors
(visitor final consumption expenditure in cash) (net valuation)
Pula millions 2005/06
Products (2.1) (2.2)
Resident visitors travelling
to a different country(*)
Resident visitors travelling
only within the country of
reference
Sameday
Total
Tourists
visitors
Sameday
Tourists
Total
visitors
Sameday
visitors visitors Visitors
(2.3) =
(2.6) = (2.7) =
(2.1) +
(2.4) + (2.1) +
(2.2) (2.4) (2.5) (2.5) 2.4)
All resident visitors (**)
Tourists
(2.8) =
(2.2) +
(2.5)
Total
visitors
(2.9) =
(2.3) +
(2.6)
A. Specific products
A.1 Characteristic
products
Accommodation 447 0 447
Food & Drink 534 0 534
Transport 0 0 0
Recreation 0 0 0
Tour Operator/Travel Agent
(Margin) 0 72 72
A.2 Connected products
Shopping 0 0 0
B. Non specific products
Other 0 0 0
TOTAL 981 72 1,053
number of trips
number of overnights
22

TABLE 3 - Outbound tourism consumption by products and categories of visitors
(visitor final consumption expenditure in cash) (net valuation)
Pula millions 2005/06 Same-day Tourists Total visitors
visitors
Products (3.1) (3.2) (3.3)=(3.1)+(3.2)
A. Specific products
A.1 Characteristic products
A.2 Connected products
B. Non specific products
TOTAL 990
number of trips
number of overnights
23

TABLE 4 - Internal tourism consumption by products and types of tourism (net valuation)
Pula millions 2005/06
Visitors final consumption
Other
components
Internal
tourism
expenditure
in cash of visitors consumption
Inbound
tourism
Domestic
tourism
Internal
tourism Consumption
(in cash and
in kind)
consumption consumption
consumption
in cash
Products (4.1)* (4.2)**
(4.1) + (4.2)
= (4.3) (4.4)***
(4.5) = (4.3)
+ (4.4)
A. Specific products
A.1 Characteristic products
Accommodation 1,030 447 1,477 1,477
Food & Drink 279 534 813 813
Transport 259 0 259 259
Recreation 219 0 219 219
Tour Operator (Margin) 72 72 144 144
A.2 Connected products
Shopping 443 0 443 443
B. Non specific products
Other 759 0 759 759
TOTAL 3,061 1,053 4,114 4,114
24

3. TOURISM SUPPLY IN BOTSWANA
3.1 General
Botswana has been fortunate in having an outstanding Central Statistics Office that has produced
many exceptional surveys and ongoing statistics, giving a basis for considering the implementation
of an Experimental Tourism Satellite Account. Important publications have included:
National Accounts, both annual and quarterly
Household Expenditure Surveys
Informal Sector Survey
Social Accounting Matrices
Labour Statistics
Foreign Trade Statistics
When the work of the CSO is combined with the work of the Research and Statistics Unit of the
Department of Tourism in providing primary statistics with respect to:
Turning Border Statistics into Tourism Arrival Statistics
Accommodation Statistics
Visitor Sample Surveys
Tour Operator Sample Survey
Supplier Sample Survey
Much of this work forms the basis for estimating the supply of tourism products and services.
Table 3.1: National Accounts Data – Hotels and Restaurants
NA Year Turnover Cost of
Sales
Gross
Output
Intermediate
Consumption
Gross Value
Added
P Million (current prices)
1993/94 308.6 73.4 235.2 65.8 169.5
1994/95 366.4 45.9 320.5 126.5 194.0
1995/96 449.5 89.2 360.3 116.0 244.3
1996/97 585.4 109.5 475.9 159.3 316.6
1997/98 721.8 122.9 599.0 210.6 388.3
1998/99 859.9 159.3 700.6 235.6 465.0
1999/00 1,086.9 201.3 885.5 303.6 581.9
2000/01 1,172.7 213.3 959.4 310.6 648.7
2001/02 1,392.5 247.0 1,145.5 394.1 751.4
2002/03 2,194.2 534.2 1,660.1 551.1 1,108.9
2003/04 2,707.0 839.1 1,867.9 620.1 1,247.7
2004/05 2,739.0 839.9 1,899.1 630.5 1,268.6
2005/06 4,082.2 1,224.7 2,857.5 948.7 1,908.8
Source: CSO National Accounts
25

3.2 Tourism Characteristic Industries
The TSA: RMF sets out clearly the Tourism Characteristic Industries for which it is appropriate to
present information on their production (See Annex 5). Such information is reliant upon two
aspects:
(1) The National Accounts relating to the different production industries; and
(2) The details on tourist‟s expenditure in the appropriate product categories as shown in Annex 5,
which itself is reliant upon the sample surveys undertaken.
With these constraints it has been found necessary to limit the TSA to the main tourism industries,
which were:
Tourism collective accommodation (but not second homes);
Restaurants and similar;
Road Transport;
Air Transport;
Travel Agencies/ Tour Operators (margins); and
Other industries.
Lack of information on Second Homes used for tourism purposes in Botswana means that it is not
possible to compile suitable statistics. Rail travel for tourism purposes is thought to be minimal.
Water Travel is similarly minimal. For the other categories of either expenditure or industries,
identifying these separately has not been possible, so they are put together in the category
„others‟. In principle Goods should be treated separately from services: for goods (shopping) only
the retail trade margin generates tourism value added, not the total value of the good purchased.
3.3 Production Accounts
The production accounts for the above six industries have been estimated by using the information
available from the CSO, for the national accounts for 2005/2006. The CSO National Accounts give
the key breakdowns into Intermediate Consumption and into Gross Value Added. Both Output and
Gross Value Added are in Basic Prices. The difference between Basic Prices, Producer Prices and
Purchasers‟ Prices is illustrated in Annex 6.
The TSA: RMF recommends a specific format for Table 5 of the TSA, which sets out the
production of products by the Tourism Characteristic Industries and then outlines the Inputs which
will make up Intermediate Consumption, and then finally gives a breakdown of Gross Value Added
into its components. (For the relationship between these macroeconomic aggregates, see Annex
7)
A key issue here is that a particular product can be produced by more than one industry, and of
course a tourism industry can produce products other than the product that is its typical output.
Identifying and then measuring these different components is a critical task. Here in Botswana it
has not been possible to identify these boundaries with clarity, and for this reason the gross
figures of output for any industry may cover other products as well.
Additionally, the output of any industry, even a tourism industry, is seldom consumed 100% by
tourists. Except for the accommodation services for visitors, the bulk of the products go to nontourism
use.
In order to keep broad comparability with the National Accounts process, „Cost of Sales‟ has been
included with Intermediate Consumption. The Production Accounts are in Table 5.
26

TABLE 5 - Production accounts of tourism industries and other industries (net valuation)
Pula Millions – 2005/06
A. Specific products 1a
Accommod
ation
Services in
55
T O U R I S M I N D U S T R I E S
2 -
Restaurants
and similar
4 - Road
transport
6 - Air
transport
8 – Travel
agencies
and similar
TOTAL
Tourism
Industries
Other Non
tourism
Industries
TOTAL output of
domestic producers
(at basic prices)
A.1 Characteristic products (5.1a) (5.2) (5.4) (5.6) (5.8) (5.13) (5.14) (5.15) = (5.13) +(5.14)
1.1 – Hotels and other accommodate 1,480.4 0.0 0.0 0.0 0.0 1,480.4 0.0 1,480.4
2 – Restaurants and similar 0.0 2,315.5 0.0 0.0 0.0 2,315.5 0.0 2,315.5
3.2 Road passenger transport services 0.0 0.0 1,068.8 0.0 0.0 1,068.8 0.0 1,068.8
3.4 Air passenger transport services 0.0 0.0 0.0 668.6 0.0 668.6 0.0 668.6
4 – Travel agencies and similar 0.0 0.0 0.0 0.0 149.0 149.0 0.0 149.0
B. Non specific products 52.1 81.5 6.5 5.4 0.0 145.4 89,921.7 90,067.1
TOTAL output (at basic prices) 1,532.5 2,397.0 1,075.2 674.0 149.0 5,827.8 89,921.7 95,749.4
Inputs - Direct Imports & Duties 137.7 328.0 274.5 154.6 16.7 911.4 8,343.9 9,255.3
1. Agriculture, forestry and fishery products 0.8 2.0 0.0 0.0 0.0 2.8 984.9 987.7
2. Ores and minerals 0.0 0.0 0.0 0.0 0.1 0.1 92.3 92.4
3. Electricity, gas and water 28.0 68.9 4.6 2.6 1.7 105.7 716.4 822.1
4. Manufacturing 124.6 381.1 82.9 76.0 2.7 667.3 2,582.9 3,250.2
5. Construction work and construction 30.5 74.9 2.8 7.0 2.9 118.1 2,205.2 2,323.4
6. Trade services, restaurants and hotel services 18.3 44.9 10.0 5.1 1.8 80.1 4,734.5 4,814.6
7. Transport, storage and communication services 130.3 320.6 11.7 18.5 3.4 484.6 1,543.1 2,027.7
8. Business services 121.0 297.7 7.8 90.1 5.1 521.6 2,162.6 2,684.2
9. Community, social and personal services 6.5 16.0 89.6 27.5 1.4 140.9 684.3 825.2
Total intermediate consumption (purchasers pr.) 597.7 1,534.1 483.9 381.4 35.7 3,032.7 24,050.1 27,082.8
Wholesale and Retail - Cost of Sales 18,956.6 18,956.6
Total gross value added (at basic prices) 934.8 862.9 591.4 292.7 113.3 2,795.1 46,915.0 49,710.1
Compensation of employees 175.7 198.6 236.2 86.5 33.4 730.5 13,000.9 13,731.4
Other taxes less subsidies on production 0.7 0.5 5.5 0.0 -4.2 2.4 -1.7 0.7
Depreciation 46.7 34.5 409.6 107.0 26.9 624.8 5,976.3 6,601.1
Gross Operating surplus (including Mixed Income) 711.4 629.1 -59.6 99.1 57.2 1,437.1 27,939.3 29,376.4
Adjustment 0.3 0.3 -0.3 0.0 0.0 0.2 0.3 0.5
27

4. ESTIMATION OF TOURISM VALUE ADDED
4.1 Reconciliation of Supply and Demand
At the very heart of the TSA process, as recommended in the TSA: RMF is the concept of
reconciling demand and supply. This is a powerful concept that attempts to improve both the
collection and compilation of statistics as well as improving the analyses that are necessary to
achieve it. It introduces an exemplary rigour into the process of using tourism statistics for
economic analyses.
The TSA: RMF again recommends a format for Table 6 which brings together this reconciliation.
The key process for bringing about the reconciliation is „Internal Tourism Consumption‟, as
measured in Table 4, and the tourism share of the production of products as indicated in Table 6,
as shown in the following pages. Ideally, these two measures should be entirely independent of
each other.
TSA:RMF suggests the following as a set of relevant indicators of the size of tourism in the
economy:
Internal tourism consumption (in cash and in kind);
Value added of the tourism industries;
Tourism value added; and
Tourism GDP.
4.2 Measures of Tourism in Botswana
Internal Tourism Consumption has been estimated in Table 4, and gives a figure of around P
4.1 billion. It is necessary to emphasise that this figure is mostly related to tourists. It combines
international inbound tourism (both overnight visitors and same-day visitors) and domestic tourists
(both overnight visitors and same-day visitors) who are travelling outside their usual environment.
It also includes the domestic component of an outbound trip by a Botswana resident. The statistics
are minimal upon some elements of „Internal Tourism Consumption‟. It is reasonable to suggest
that P4.1 billion is a conservative figure for Botswana.
Value Added of the Tourism Industries (VATI) is shown in Table 5. It is P2.8 billion at Basic
Prices. This estimate is limited to the five industries that have been identified as Tourism
Industries. If figures for more Tourism Industries were identifiable, then the Value added of the
Tourism Industries would be higher. On the other hand these Tourism Industries do supply many
products to persons who are not visitors, so the total Value Added of the Tourism Industries has
these different elements which mean that precisely what is included has to be taken into account
when using these measures for economic decision-making.
Tourism Value Added (TVA) is estimated in Table 6. The figure is around P 1.9 billion which is
the direct impact of tourism spending. It is the gross value added in Basic Prices by the actual
tourism expenditure (or consumption). It does not take into account indirect effects or induced
effects.
Tourism GDP (TGDP) is measured in market prices and involves adding back in product taxes. It
will be broadly higher than the TVA.
28

TABLE 6 - Domestic Supply and Internal Tourism Consumption by Products (net valuation)
Page 1 of 3
Pula million 2005/06
A. Specific products
A.1 Characteristic products
1a
Accommodation
Services in 55
Output
(5.1a)
Tourism
share
2 - Restaurants
and similar
Output
(5.2)
Tourism
share
Output
(5.4)
4 - Road
transport
Tourism
share
6 - Air transport
Output
(5.6)
Tourism
share
1 – Accommodation services
for visitors
1.1 – Hotels and other
1480.4 1228.7 0.0 0.0 0.0 0.0 0.0 0.0
accommodation services
2 – Restaurants and similar 0.0 0.0 2315.5 509.4 0.0 0.0 0.0 0.0
3 – Transport services
3.2 Road transport services 0.0 0.0 0.0 0.0 1068.8 106.9 0.0 0.0
3.4 Air transport services 0.0 0.0 0.0 0.0 0.0 0.0 668.6 635.2
4 – Travel agencies and
similar
Reservation services (1)(2) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
B. Non specific products
Services/ Goods (3) 52.1 43.2 81.5 17.9 6.5 0.6 5.4 5.1
TOTAL output (at basic prices) 1532.5 1272.0 2397.0 527.3 1075.2 107.5 674.0 640.3
Direct Imports & Duties 137.7 114.3 328.0 72.2 274.5 27.4 154.6 146.9
1. Agriculture, forestry and
0.8 0.7 2.0 0.4 0.0 0.0 0.0 0.0
fishery products
2. Ores and minerals 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
3. Electricity, gas and water 28.0 23.3 68.9 15.2 4.6 0.5 2.6 2.4
4. Manufacturing 124.6 103.4 381.1 83.8 82.9 8.3 76.0 72.2
5. Construction work and
construction
6. Trade services, restaurants
and hotel services
7. Transport, storage and
communication services
30.5 25.3 74.9 16.5 2.8 0.3 7.0 6.7
18.3 15.2 44.9 9.9 10.0 1.0 5.1 4.9
130.3 108.2 320.6 70.5 11.7 1.2 18.5 17.6
8. Business services 121.0 100.4 297.7 65.5 7.8 0.8 90.1 85.6
9. Community, social and
personal services
Total intermediate
consumption (at purchasers
price)
6.5 5.4 16.0 3.5 89.6 9.0 27.5 26.1
597.7 496.1 1534.1 337.5 483.9 48.4 381.4 362.3
Total gross value added of
activities (at basic prices)
934.8 775.9 862.9 189.8 591.4 59.1 292.7 278.0
Compensation of employees 175.7 145.9 198.6 43.7 236.2 23.6 86.5 82.2
Other taxes less subsidies on
0.7 0.5 0.5 0.1 5.5 0.5 0.0 0.0
production
Depreciation 46.7 38.8 34.5 7.6 409.6 41.0 107.0 101.7
Gross Operating
711.4 590.5 629.1 138.4 -59.6 -6.0 99.1 94.2
surplus(incl.mixed in.)
Adjustment 0.3 0.2 0.3 0.1 -0.3 0.0 0.0 0.0
29

TABLE 6 - Domestic Supply and Internal Tourism Consumption by Products (net valuation)
Page 2 of 3
Pula millions 2005/06
A. Specific products
A.1 Characteristic products
1 – Accommodation services for
visitors
1.1 – Hotels and other
accommodation services
8 - Travel
agencies and
similar
Output
(5.8)
Tourism
share
TOTAL Tourism
Industries
Output
(5.13)
Tourism
share
Other Industries
Output
(5.14)
Tourism
share
TOTAL output of
domestic
producers (at
basic prices)
Output
(5.15)
Tourism
share
0.0 0.0 1480.4 1228.7 0.0 0.0 1480.4 1228.7
2 – Restaurants and similar 0.0 0.0 2315.5 509.4 0.0 0.0 2315.5 509.4
3 – Transport services
3.2 Road transport services 0.0 0.0 1068.8 106.9 0.0 0.0 1068.8 106.9
3.4 Air transport services 0.0 0.0 668.6 635.2 0.0 0.0 668.6 635.2
4 – Travel agencies and similar
Reservation services (1) (2) 149.0 149.0 149.0 149.0 0.0 0.0 149.0 149.0
B. Non specific products
Services/ Goods (3) 0.0 0.0 145.4 66.9 89921.7 899.2 90067.1 966.2
TOTAL output (at basic prices) 149.0 149.0 5827.8 2696.2 89921.7 899.2 95749.4 3595.4
Direct Imports & Duties 16.7 16.7 911.4 377.4 8343.9 83.4 9255.3 460.9
1. Agriculture, forestry and fishery
0.0 0.0 2.8 1.1 984.9 9.8 987.7 11.0
products
2. Ores and minerals 0.1 0.1 0.1 0.1 92.3 0.9 92.4 1.0
3. Electricity, gas and water 1.7 1.7 105.7 43.0 716.4 7.2 822.1 50.1
4. Manufacturing 2.7 2.7 667.3 270.4 2582.9 25.8 3250.2 296.3
5. Construction work and
construction
6. Trade services, restaurants and
hotel services
7. Transport, storage and
communication services
2.9 2.9 118.1 51.6 2205.2 22.1 2323.4 73.7
1.8 1.8 80.1 32.7 4734.5 47.3 4814.6 80.1
3.4 3.4 484.6 200.9 1543.1 15.4 2027.7 216.3
8. Business services 5.1 5.1 521.6 257.3 2162.6 21.6 2684.2 279.0
9. Community, social and personal
services
Total intermediate consumption
(at purchasers price)
1.4 1.4 140.9 45.3 684.3 6.8 825.2 52.2
35.7 35.7 3032.7 1279.9 24050.1 240.5 27082.8 1520.4
Wholesale and Retail Cost of
0.0 0.0 0.0 0.0 18956.6 189.6 18956.6 189.6
Sales
Total gross value added of
113.3 113.3 2795.1 1416.2 46915.0 469.2 49710.1 1885.4
activities (at basic prices)
Compensation of employees 33.4 33.4 730.5 328.8 13000.9 130.0 13731.4 458.8
Other taxes less subsidies on
-4.2 -4.2 2.4 -3.0 -1.7 0.0 0.7 -3.0
production
Depreciation 26.9 26.9 624.8 215.9 5976.3 59.8 6601.1 275.7
Gross Operating surplus(incl.mixed 57.2 57.2 1437.1 874.2 27939.3 279.4 29376.4 1153.6
in.)
Adjustment 0.0 0.0 0.2 0.3 0.3 0.0 0.5 0.3
30

TABLE 6 - Domestic Supply and Internal Tourism Consumption by Products (net valuation) Page 3 of 3
Pula millions 2005/06 Imports* Taxes less subsidies
on products
nationally produced
and imported
Output
(6.1)
Tourism
share
Output
(6.2)
Tourism
share
Trade & Transport
Margins
Output
(6.3)
Tourism
share
Total Domestic supply
(at purchasers prices)
(4)
(6.4) = (5.15) +(6.1) + (6.2)
+ (6.3)
Internal
tourism
consumption
Rest of
Demand
(4.3) (6.5) = (6.4) -
(4.3)
A. Specific products
A.1 Characteristic products
1 – Accommodation services for
visitors
1.1 – Hotels and other
accommodation services for visitors
other than 1.2 0.0 0.0 88.5 73.4 0.0 0.0 1568.9 1477.0 91.9
2 – Restaurants and similar
0.0 0.0 138.4 30.4 0.0 0.0 2453.9 813.0 1640.9
3 – Transport services
3.2 Road transport services
3.4 Air transport services
0.0 0.0 81.3 8.1 0.0 0.0 1150.1 130.0 1020.1
4 – Travel agencies and similar
other reservation services (1) (2)
B. Non specific products
Services/ Goods (3)
TOTAL output (at basic prices) (5)
0.0 0.0 57.6 54.8 0.0 0.0 726.3 129.0 597.3
0.0 0.0 9.6 9.6 0.0 0.0 158.6 144.0 14.6
19892.0 368.7 6000.0 92.2 5404.0 58.3 121363.1 1421.0 119942.1
19892.0 368.7 6375.4 268.5 5404.0 58.3 127420.9 4114.0 123306.9
*Imports excludes direct purchase of residents abroad
(1) Corresponds to the services charged of the travel agencies (2) Corresponds to the services charged of the tour operators
(3) Excludes valuables and tourism single purpose consumer durable goods the value of which exceed the custom threshold, and that Balance of Payments statistics and National Accounts include
as imports or exports of goods under general merchandise trade
(4) Domestic Supply includes both imports into Botswana and exports, which will go out of Botswana
(5) includes wholesale and retail - cost of sales
31

5. EMPLOYMENT AND NON-MONETARY INDICATORS
5.1 Tourism Employment
CSO have indicated the level of employment in the Hotels and Restaurants exceeds 11,000 in
2004. Not all such employment is associated with tourism expenditure, but then expenditure by
tourists outside of Hotels and Restaurants will broadly offset the non-tourist expenditure.
Employment at more than 11,000 is highly significant exceeding employment in Mining and
Quarrying, in Transport and Communications, and in Finance. These figures form the basis of
Table 7, which is shown below.
Table 7 – Employment in the Tourism Industries
2994 Number of
Number of Jobs
Number of Employed Persons
Establishments
Tourism industries Male Female Total Male Female Total
1 & 2 – Hotels and
Restaurants 2192 (2003) 3,925 7,127 11,052
5.2 Non-Monetary Indicators
The last of the Tables in the TSA is Table 10, which is described as Non-Monetary Indicators,
which is shown below. Tables 8 (Collective Consumption) and Table 9 (Gross Fixed Capital
Formation) are as yet and for the time being not included in the TSA.
Table 10 – Non-Monetary Indicators
a. Number of trips and overnights by type of tourism and categories of visitors
Provisional
Inbound tourism (*)
Tourists
Total
Domestic tourism
Tourists
Total
Sameday
Sameday
Sameday
Outbound tourism
Tourists
2005 in „000 visitors visitors visitors visitors visitors visitors
Number of trips (*) 210 1,675 1,885
Number of
overnights - million
9.2 9.2
b. Inbound tourism: Number of arrivals and overnights by means of transport
Total
2004 in ‘000
Number of
arrivals
1.Air 66
3. Land 1,455
Other 2
Total 1523
Number of
overnights
c. Number of establishments and capacity by forms of accommodation
Hotels and similar
number of establishments
capacity (rooms) 4,050
capacity (beds) 7,800
capacity utilization (rooms)
41.5% (sample)
capacity utilization (beds)
36.0% (sample)
32

d. Number of establishments in tourism characteristic and tourism connected activities classified according to
number of employed persons
2003 Nil 1-4 5-29 30-49 50-99 100+ WP Unknown TOTAL
Tourism Characteristic activities
1 & 2 Hotels and Restaurants 6 1,194 655 46 18 12 73 188 2192
WP = Working Proprietor
33

6. CONCLUSIONS
6.1 Contribution to the Economy
The key question that is often asked is „what is the contribution of tourism to the Botswana
economy?‟ The response is frequently framed in terms of „Contribution to GDP‟ from tourism
expenditure.
The TSA process here indicates that TVA is around P1.9 billion in 2005/2006. Comparing this with
Gross Value Added in the National Accounts for 2005/2006 of P 54.8 billion (provisional figures)
indicates that the Direct Contribution of Tourist Expenditure (consumption) is around 3.4% to
Botswana‟s GDP.
It should be emphasised that this is the „direct‟ contribution and there are further „indirect‟
contributions that can arise from the chain of value added by suppliers to the tourism industry, and
then from suppliers to these suppliers, etc. who have no direct connection with the tourist,
himself/herself.
„Indirect‟ contribution can vary substantially, and can lie usually anywhere between 25% and 75%
of the „direct‟ contribution. If this were to apply in Botswana, it might be that the „direct + indirect‟
contribution would lie between 4.2% and 6.0%. These contributions relate to the impact of the
expenditure/consumption. They do not include for capital expenditure (which can be highly
variable through the years).
The “induced” impacts are more abstract: they take into consideration the effects of increased
income on expenditure, and then, the effects of these increased expenditures on GDP.
6.2 Leakages and Linkages
Leakages and linkages are frequently mentioned in the context of economic initiatives to reduce
leakages and to improve linkages.
The Supply Survey and the Accommodation Survey carried out and put together by DOT indicated
a number of opportunities for reducing leakages and improving linkages. The most important of
these are:
Increasing the number of Botswana in employment in the tourism industries
Compared with some other destinations (e.g. Kenya), there is still an opportunity to encourage
more employment in Botswana. The current levels of around 6% from abroad in the hotels could
perhaps be substantially reduced. Kenya is now less than 1%. There, all staff are local unless
there is some exceptional skill that the foreign staff bring to a post e.g. speak Russian. If there is
suitable training and there is the same level of productivity from local labour then Botswana
employment can be increased. However, this should be done in conjunction with the owners of the
businesses, who nowadays are always seeking the most productive solutions, so there is no point
in having foreign staff if local staff can do the job. But there is an opportunity.
Encouraging the provision of local services and local supplies by Botswana
The Supplier Survey, whilst not statistically significant, does indicate that there is an opportunity for
increasing supplies from local producers and local services. However, as with staff, they have to
be equal in productivity and quality. Again, there is an opportunity.
Mostly they have to do with the reduction of the dependency on imported inputs and capital goods,
and their substitutions with nationally produced goods: this has to do with the industrial
development of the country. Regarding food serving services, it might be possible to promote the
production of food stuff, and also the promotion of the use of local food in restaurants, based on
locally available inputs.
34

Encouraging the private sector tour operators to make available more information on their
operations in Botswana, through the medium of HATAB
Understandably there is a view that revenues declared and taxes paid in Botswana by some of the
tour operators are not as high as it could be. Inevitably there is some scope for „transfer pricing‟,
but no serious data is available to draw any conclusions on this.
„Transfer pricing‟ refers to the pricing of goods and services within a business organization,
particularly in regard to cross-border transactions. In effect, the business is able to price services
and goods sold to itself such that it can reduce its exposure to tax in a particular economy.
The answer for Botswana to clarify such an issue would be for there to be more transparency and
more information shared by the tourism industry with their representative body, HATAB, and then
informed discussion between Government and the industry can take place. The Government does
play a most important part in looking after the environment and wildlife, spending significant sums
of taxpayers‟ money. Clearly informed debate could be to mutual benefit. Probably such an
initiative through HATAB would address concerns about leakage.
6.3 Conclusions on the TSA Process
A very substantial effort has gone into collecting primary statistics on tourism in Botswana, where
the collection of primary statistics is not easy because of the large physical scale of the country
because of the large number of border posts, and because of the large number of business
enterprises involved with tourists.
The TSA requires a great deal of collaboration to collect, compile and analyse primary statistics
from a whole range of different institutions – DOT, CSO, BOB and UB to name some key players.
Such collaboration has been good and can continue to be so.
The process has helped in the strengthening of the statistical capacity within the country (an
objective of the UNWTO/ UNDP), which is already at a high level, but there is always a value in
continuing to update. Presenting an Experimental TSA, as recent as 2005/2006, is a relatively rare
event, even in some of the very advanced statistical nations.
Of course, there are many improvements that can be made to this TSA process. Many will
probably be made in the next two to three years with the whole range of new sample surveys
being carried out by the CSO.
Particularly important are considerations regarding the visitors and tourist arrivals to ensure that
there is not the inclusion of arriving non-residents that are not visitors. Also the measurement of
domestic tourism consumption is essential.
Despite the extensive range of statistics available, it has been necessary to work with anecdotal
information as well, especially in relation to private sector activities. Where improvements could be
made in forthcoming years are with respect to:
More statistical information on private sector activities, in particular the numbers of
tourists coming on package tours to Botswana would be helpful. Breakdowns on how
part of the package tour price is spent in Botswana would also improve the TSA process.
It is recommended that HATAB along with DOT be a key player in obtaining such
information;
Information on domestic tourism, not only by households (to be picked up next year by
DOT in cooperation with CSO in a Household Survey) but also tourism by Government
staff and by businesses is needed. It is recommended that the DOT add an
accommodation sample survey to their accommodation statistics process; and
Updating of the Social Accounting Matrix by the CSO is recommended. It is a major
exercise but one that would be highly valuable for the TSA process, and one that could
35

e achieved following the important surveys that are being carried out by CSO currently
and in the next couple of years.
6.4 The Way Forward
The following table provides a list of action items that are required to move tourism statistics
forward in Botswana, as well as improve the statistical base in future revisions of the TSA. The key
bodies responsible for each action item are shown, as is the proposed timing (short = during 2008,
medium = 2009-2011 years, long = 2012 onwards). The statistical coverage of each action item is
also indicated.
Action Item Responsibility Timing Statistical Coverage
Domestic Tourism
Survey
Training for DOT on
statistics analysis
Tourism Statistics
Database
Maintenance
Production on
Quarterly
Accommodation
Reports
CSO, DOT Short Domestic Tourism,
TSA Tables 2 and 10
Consultant Input Short All Statistics
Consultant Input Short All Statistics
DOT Short Accommodation
Statistics
Annual Visitor Survey DOT Short / Medium Inbound Visitor
Expenditure, TSA
Table 1
Production of Annual
Tourism Statistics
Report
Update Social
Accounting Matrix
Tourism Employment
Survey
Package Holiday/Tour
Operator Survey
DOT Short / Medium All Statistics
CSO Medium TSA Table 5
DOT, CSO Medium TSA Tables 7 and 10
DOT Medium Inbound Visitor
Expenditure, TSA
Table 1
Computerization of
border posts
Department of
Immigration
Medium
Inbound Visitor
Arrivals, TSA Tables 1
and 10
Update TSA for a new
reference year
CSO, DOT,
Consultant Input
Medium
All Statistics
36

ANNEX 1: TERMS OF REFERENCE
The development of the Experimental TSA is Phase 2 of the overall project involving the
„Strengthening of Tourism Statistics in Botswana‟. The original Project Document states:
“TSA Development:
The level of development of the TSA will be dependent on the success of the data collection.
However, the developed TSA should be considered to be a “preliminary TSA” until the data
collection procedures become more established and the data can be verified further.
Phase 2: TSA Development
This phase will focus on the development of the TSA, commencing with tables 1, 7 and 10 (that is
inbound tourism consumption, employment and non-monetary tourism indicators). The successful
development of these tables will trigger (albeit to a preliminary level) development of Tables 2 and
3 (domestic and outbound tourism consumption), Table 4 (consolidation of Tables 1 and 2) and
Table 5 (production accounts of the tourism supply). This will culminate in the generation of Table
6, the core of the TSA system, where the confrontation between supply and demand (internal
tourism consumption) takes place. Preliminary calculations, such as Tourism Value Added (TVA)
and Tourism GDP will be undertaken at this stage.”
Work Programme for the Botswana TSA
The Work Programme for the TSA has built upon a combination of sample surveys, national
accounting statistics, Social Accounting Matrices, and analytical exercises to arrive at a
reasonable set of estimates of the information to go into the Experimental Tourism Satellite
Account for Botswana.
The guidelines indicated in the TSA: RMF (Recommended Methodological Framework)
established by the UNWTO and endorsed by the OECD and the European Commission (Eurostat)
have been followed.
37

ANNEX 2: TSA DEFINITIONS
Internal tourism consumption is the amount of visitor consumption within the economic territory
of the country of reference. Visitor consumption includes flows – tourism business expenses –
which national accounts classify within the intermediate consumption of productive activities and
not as part of final demand. In this context a visitor includes inbound visitors to the country of
reference (same day and staying the night), domestic visitors within the country of reference, and
resident‟s consumption within the country of reference as part of a visit abroad.
Value added of the tourism industries simply sums the total value added of all characteristic
producers, regardless of whether all of their product is provided to visitors. It leaves out the effect
of visitor consumption on other productive activities that might serve them. The estimate of the
value added of tourism industries is dependent on the definition of the characteristic industries.
Value added of tourism industries is a measure of the supply side of tourism but is not sufficiently
well defined in terms of its links to visitor consumption to allow it to be the most accurate measure
of tourism supply.
Tourism value added includes the proportion of value added generated by all industries in the
provision of goods and services to visitors.
Gross Domestic Product generated by Internal tourism consumption is the sum of the value
added (at basic prices) generated by all industries in response to internal tourism consumption and
the amount of net taxes on products and imports included within the value of this expenditure.
Classifications
In the TSA, Products and Activities (Industries) are classified as:
Products
Activities (industries)
A. Tourism Specific A. Tourism Specific
A1 – Tourism Characteristic
A1 – Tourism Characteristic
A2 - Tourism Connected
A2 - Tourism Connected
B. Non- Specific B. Non- Specific
Source: TSA:RMF
The TSA:RMF points out that the classifications to be used will also respond to different stages of
development of classifications at the international level.
The TSA defines a tourism characteristic industry as a group of establishments whose principal
productive activity is a tourism characteristic activity. Tourism industries are the group of all
tourism characteristic industries.
Products considered as tourism characteristic, tourism connected and tourism specific follow
roughly the following pragmatic criteria:
Tourism-characteristic products: products which in the absence of visitors, in most
countries would probably cease to exist in meaningful quantity or for which the level
of consumption would be significantly reduced and for which it seems possible to
obtain statistical information;
Tourism-connected products: a residual category, including those that have been
identified as tourism-specific in a given country but for which this attribute has not
been acknowledged on a worldwide basis; and
Tourism-specific products: the sum of the two previous categories.
38

Classifications do not exist for connected products, and as the TSA:RMF indicates, some
countries may include different products and activities under the categories of „characteristic‟ and
„connected‟.
Key issues that make measurement difficult for the purposes of focusing upon tourism are:
that particular broad product categories can be produced by many different
activities/industries; and
that an industry, broadly defined, may produce many different products, some to
serve visitors, some to serve residents and some to serve both visitors and residents.
The TSA: RMF neatly encapsulates the difficulty in the Figure below.
Also the pragmatic criteria for identifying products does emphasise the need to use product
categories „for which it seems possible to obtain statistical information‟.
Data Transformations
Developing a country‟s TSA requires from the compiler not only a basic set of direct data-collection
procedures but also a transformation and partitioning of the information already existing in the
national accounts of a country into the tourism orientation embodied in the TSA. This process
includes: -
The extraction of data on tourism-specific products and activities from the databases
used for the elaboration of make and use matrices of national accounts;
The transformation of package tours from their gross valuation in the national
accounts to the net valuation required by the TSA;
The extraction of the value of travel agency services from the costs of the services in
which they are included;
The breakdown of the value of goods acquired by visitors between the distribution
margins and the basic value of the good;
The identification of visitor consumption in all its components as distinct from nonvisitor
consumption; and
A dual classification of business tourism expenses, both as a component of visitor
consumption where the balance between supply and use is concerned, and as a cost
of production of productive activities when describing these production processes and
establishing tourism value added and tourism gross domestic product.
39

Of the six transformations of basic information, four of them (different classifications for products
and activities, separation of the margins from the value of goods, identification of visitor
consumption, and dual classification of business expenses) mean that the breakdowns by
products and activities are modified but the not the total values themselves. However, this is not
the case for the net valuation of package tours and for the extraction of travel agency services,
which have implications for the values and classifications of flows within the different concepts of
visitor consumption.
Key Economic Concepts
It is fair to say that Tourism Satellite Accounts are still very much a „work in progress‟. There are
methodological issues that are continually being refined.
40

ANNEX 3: VISTOR SURVEYS
DOT has developed considerable expertise in carrying out sample surveys of visitors since the
Year 2000 with UNDP/UNWTO guidance. These sample surveys take place in April and October
and total interviews exceed 4000. These sample surveys provide the key estimates of average
length of stay and expenditure per day.
For the development of the TSA the sample surveys carried out in 2005 (April and October) and
similarly in 2006 have been used. In addition a Visitor Survey was carried in April 2007 by DOT.
There are a large number of Border Posts in Botswana. Some of these border posts could be
described as remote and indeed conditions for interviewing are not at all easy.
Photo A3.1: Interviewer‟s Living Conditions in Ngoma – illustrating the substantial field operations
required to collect primary statistics often in remote border areas.
Average Length of Stay
Because a total figure for tourist arrivals embraces such a wide range of different types of visitor,
many of them undertaking different activities and staying for varying periods, it is best to try to
segment this total in various ways. „Country of residence‟ and the „purpose of visit‟ have been
looked at in particular. Average length of stay varies according to the purpose of visit. Examples
include transit visitors who are staying for only a night whilst holiday visitors can be staying for
nearly six nights on average.
For the reference year of 2005/2006 an average has been adopted for the length of stay between
the sample survey data for the Year 2005 and the Year 2006, as shown in Table A3.1.
In order to use figures with a lower relative sampling error, the sample data has often been
brought together into larger groupings. The relative sampling error (the standard error times 1.96 –
95% confidence level) has been calculated as a percentage of the arithmetic mean.
41

Table A3.1: Average Length of Stay
Country of
Residence &
Purpose of Visit
Australia
2005
Mean
Nights
N 2005
Median
Nights
Relative
Sampling
Error
2006
Mean
Nights
N 2006
Median
Nights
Relative
Sampling
Error
2005/
2006
Nights
Holiday or Leisure 9.8 51 6 39% 7.7 22 7 28% 8.8
Total 10.2 56 6 36% 6.8 34 5 23% 8.5
France
Holiday or Leisure 5.3 12 2 66% 8.9 9 10 56% 7.1
Germany
Holiday or Leisure 6.9 70 5 19% 7.4 60 6 19% 7.1
Total 7.7 78 5 19% 8.0 81 4 28% 7.8
Namibia
Holiday or Leisure 4.8 35 3 30% 3.0 29 1 51% 3.9
In Transit 0.7 20 0.5 50% 0.8 41 1 19% 0.8
VFR 7.4 10 6.5 45% 3.6 22 2 72% 5.5
Total 4.9 93 2 52% 2.2 131 1 27% 3.6
Netherlands
Holiday or Leisure 6.0 42 5 21% 6.0 38 4 30% 6.0
Total 5.8 45 4 20% 5.8 40 4 30% 5.8
South Africa
Business 2.8 659 2 12% 2.9 874 2 18% 2.8
Holiday or Leisure 4.2 279 3 10% 5.0 543 4 10% 4.6
In Transit 0.7 50 0 34% 0.8 96 1 19% 0.7
VFR 4.1 371 2 13% 5.2 443 3 13% 4.6
Total 3.3 1359 2 7% 3.9 1964 2 8% 3.6
United Kingdom
Holiday or Leisure 7.2 108 5 31% 7.2 64 5 21% 7.2
Total 7.8 137 4 32% 8.5 96 6 22% 8.2
USA
Holiday or Leisure 9.6 70 5 25% 7.6 58 6 23% 8.6
Total 10.4 92 5 40% 7.3 87 6 19% 8.8
Zambia
Holiday or Leisure 3.8 5 4 38% 2.3 3 2 74% 3.1
Zimbabwe
Business 2.1 352 1 18% 3.6 230 1 24% 2.9
Holiday or Leisure 2.7 170 1 28% 4.6 195 3 25% 3.6
In Transit 0.5 41 0 40% 0.9 24 1 53% 0.7
VFR 6.5 1908 2 9% 6.8 1888 2 8% 6.6
Total 5.5 2471 2 8% 6.2 2340 2 8% 5.9
Total
Business 3.8 1164 2 17% 3.5 1295 2 12% 3.6
Holiday or Leisure 5.7 970 4 10% 5.6 1150 4 7% 5.7
In Transit 0.9 123 0 56% 0.8 181 1 14% 0.8
VFR 6.2 2377 2 8% 6.6 2442 2 7% 6.4
Total 5.3 4634 2 6% 5.3 5083 2 5% 5.3
Source: DOT Visitor Surveys in 2005 & 2006
42

Table A3.2: Average Spend per Day–Pula
Country of
Residence &
Purpose of Visit
Australia
Mean
Spend
Pula
N
2005
Median
Spend
Pula
Relative
Sampling
Error
Mean
Spend
Pula
N
2006
Median
Spend
Pula
Relative
Sampling
Error
2005/
2006
Spend P
Total 346 45 183 41% 815 34 265 66% 580
France
Total 602 13 414 80% 425 12 297 63% 513
Germany
Total 462 73 227 31% 488 75 113 69% 475
Namibia
Business 387 28 232 51% 263 39 134 34% 325
Holiday /Leisure 339 29 222 37% 150 23 125 46% 244
In Transit 202 10 167 38% 222 31 156 32% 212
Total 339 76 217 28% 220 113 141 20% 279
Netherlands
Holiday /Leisure 241 31 83 46% 326 35 188 50% 283
Total 234 33 83 45% 333 36 193 48% 283
South Africa
Business 431 516 305 10% 526 784 287 15% 479
Holiday /Leisure 302 232 202 16% 256 530 150 12% 279
In Transit 217 17 208 31% 227 62 175 23% 222
VFR 165 299 75 16% 124 429 42 18% 144
Total 325 1064 200 8% 341 1808 150 11% 333
United Kingdom
Holiday /Leisure 552 89 227 42% 541 63 295 32% 546
Total 632 112 288 34% 502 95 275 26% 567
USA
Business 977 14 660 52% 535 18 617 26% 756
Holiday /Leisure 629 61 267 42% 489 58 60 50% 559
Total 679 78 332 33% 504 87 167 35% 591
Zambia
Holiday /Leisure 272 5 225 66% 159 3 150 33% 215
Total 231 31 200 24% 586 27 167 91% 408
Zimbabwe
Business 355 275 200 22% 171 197 62 24% 263
Holiday /Leisure 278 140 170 24% 187 189 72 20% 233
In Transit 172 14 145 43% 76 13 50 68% 124
VFR 158 1777 63 9% 94 1841 21 22% 126
Total 190 2206 85 9% 108 2243 25 16% 149
Total
Business 429 936 270 9% 502 1171 251 12% 466
Holiday /Leisure 375 806 190 12% 353 1106 150 18% 364
In Transit 258 50 193 39% 209 114 151 18% 233
VFR 170 2158 67 9% 113 2378 25 16% 141
Total 274 3950 125 6% 266 4779 70 9% 270
Source: DOT Visitor Surveys in 2005 & 2006
43

Average Direct Expenditure per day
Expenditure data has been gleaned from the DOT visitor surveys for 2005 and 2006. In a similar
manner to the „length of stay‟, for our reference year of 2005/2006 an average for the „expenditure
per day‟ between the sample survey data for the Year 2005 and the Year 2006 has been adopted.
Using the „country of residence‟ and the „purpose of visit‟ as a way of segmenting the total figures
allows one to take into account the considerable disparity in „length of stay‟ and „expenditure per
day‟ between individual tourist arrivals.
The base figures for expenditure per day are shown in Table A3.2. Ideally it is „good practice‟ to
focus upon expenditure with relative sampling errors below 25%, but this has not always been
possible in this process.
Relative Sampling Errors are 1.96 times Standard Error - 95% confidence level.
44

ANNEX 4: SAME-DAY VISITORS – INTERNATIONAL INBOUND
1. General
Expenditure by Same-Day Visitors is part of Inbound Tourism Expenditure as required in Table 1
of the TSA.
In a country with a large physical area, with many road border posts, and often with strong ties
between family/friends across borders, and frequent commercial relationships between
neighbouring border towns, inevitably
same-day visitors (day visitors) can be
substantial. For Botswana, there are many
ties with South Africa and also with
Zimbabwe. For the latter country, there are
exceptional circumstances leading to travel
which looks like tourism travel in that
Zimbabweans are visiting Botswana in ever
increasing numbers. But it is difficult to
distinguish between genuine same-day
tourist travel, cross border travel which is
really within the usual environment
(frequency/distance) and other travel, such
as short-term visits for the purpose of
picking up casual employment through the
week and going home at the weekend,
which are not tourism visits because the traveller is being employed in the country visited, etc.
(e.g. Zimbabweans in Francistown, as the DOT interviewers found in anecdotal discussions in
Ramokgwebana – see Photo A4.1 of Ramokgwebana border post above, the interviewers in the
foreground).
2. Same-day visitor numbers
The Visitor Arrival Statistics, from CSO/ DOT, indicate that Day Visitors in 2004 were 204,000 and
provisional figures for 2005 were 210,000. Provisional figures for 2005/2006 indicate a total of
around 213,000 day visitors.
Table A4.1: Breakdown of Day visitors by Country of Residence for 2005/2006
Other 3%
Namibia 5%
South Africa 42%
Zambia 1%
Zimbabwe 50%
The same-day visitors are primarily from the neighbours, South Africa and Zimbabwe, and to a
much smaller extent from Namibia and Zambia. In addition there are small numbers from other
countries of residence but these are people visiting South Africa, Zimbabwe, Zambia and Namibia,
and just coming over for a daytrip to Botswana, or indeed transiting Botswana (e.g. Germans
transiting to Namibia).
3. Day visitor spend per trip
Expenditure data has been gleaned from the DOT visitor surveys for those respondents who
indicated that they were not staying the night in Botswana. Expenditure statistics are available for
same-day visitors from South Africa, Zimbabwe and Namibia. Sample numbers from Zambia are
too small to allow reasonable estimates of such spending. Median expenditures for Day visitors
are similar for all three of the fore-mentioned neighbouring countries at around Pula 50 per day
visit. The differences in the arithmetic means are caused by relatively small numbers of higher
than average spenders. The high spending derives from either „shopping spending‟ or from
45

Spend per person
spending on „other‟ items. From South Africa there are a number of relatively high spenders –
businessmen flying over for the day and spending on lunch and other items – but these are small
in number. From Zimbabwe, there are high spenders coming over and shopping, because of the
lack of goods in their own country, and also spending on „other‟ goods and services. If such
behaviour is routine then they should be considered as being within their usual environment.
Anecdotal evidence suggests that some Zimbabweans are coming over to complete banking
transactions and foreign exchange transactions, which are tedious in their own country. Some of
these may also be considered as being within their usual environment. There is then an issue of
these transactions having an effect on the travel item of the Balance of Payments, even though
they are not visitors.
Figure A4.1: Same-day visitor spending per trip – Outliers 2005
10000.00
8000.00
309
3,516
3,828
Investigation of the frequency distributions
for the Same-day visitor spending suggests
that some of the high levels of expenditure
could be described as „outliers‟ or „freak‟
results. An illustration of the process is
shown in the Figure alongside.
6000.00
4000.00
2,559
4,465
4,166
2,341
It may also be that these „outliers‟
correspond to the “non-tourism” type of
traveller and the expenditure is not for own
use or as a gift.
2000.00
0.00
2,858
4,297
4,210
3,262
3,228
3,614
2,732
3,886
3,746
2,367
Because of these „outliers‟, the view has
been taken that it is better to use the lower
of the means obtained in either 2005 or
2006 as the appropriate statistic to be
adopted for the 2005/2006 analyses.
India Namibia South Africa Zambia Zimbabwe
Country of Residence
The estimates for Same-day visitor
spending are shown in the Table below.
Table A4.2: Spending on the Same-day Visit Trip - Pula
Country of
Residence
2005
Statistic
2006
Statistic
Adopted for
2005/2006
Namibia Mean 97.5000 53.66 54
Relative Sampling Error 117% 53%
5% Trimmed Mean 80.5556 51.26
Median 50.0000 43.00
South Africa Mean 346.8649 605.81 347
Relative Sampling Error 65% 77%
5% Trimmed Mean 184.8498 144.88
Median 111.5000 50.38
Zimbabwe Mean 728.4513 275.90 276
Relative Sampling Error 27% 78%
5% Trimmed Mean 509.6202 119.44
Median 251.0000 50.75
46

4. Total Spending by Same-day visitors
The Total Spending by Same-day visitors for 2005/2006 (day visitors) is then estimated by
multiplying the Spend per Same-day visitor by the number of Same-day visitors.
Table A4.3: Total Spending by Same-day visitors in 2005/ 2006
Total Number of Same-day visitors 213,000
Country of Residence Percent Spend Total Spend
Pula P million
Other 2.5% 347 1.85
Namibia 4.5% 54 0.52
South Africa 42.0% 347 31.04
Zambia 1.0% 54 0.12
Zimbabwe 50.0% 276 29.39
62.92
The total day visitor spending is estimated at Pula 63 million for 2005/06. It is fair to mention that
the relative sampling errors that are associated with these statistics are upwards of 60%. So, as
with any estimates involving sampling, it is necessary to indicate that this estimate (P 63 million)
could lie with 95% confidence levels anywhere between P25million and P100 million
(approximately).
5. Breakdown of the Same-day visitor spending
Sample estimates of the breakdown of day visitor expenditure are obtained from DOT visitor
surveys in 2005 and in 2006. The key feature of these breakdowns is that the day visitors into
Botswana are not spending on the usual tourism services – accommodation, meals and drinks,
transport, recreation - or hardly at all. They are spending on „shopping‟ and on „other‟ items, which
appear to encompass a whole range of other goods and services.
To some extent these findings coincide with simple observation. Zimbabweans are coming across
to make transactions within Botswana that perhaps in other years they may have made within their
own country. South Africa is different to Zimbabwe but again the focus of expenditure is upon
„shopping‟ and „other‟ items. Estimates for South African expenditure could be influenced by the
strong involvement of South African companies in the Botswana economy. For example, some
business expenditure by a South African day visitor will be met by the local office in, say,
Gaborone. So DOT interviewers at Sir Seretse Khama airport, would come across South Africans,
both same-day visitors and overnight visitors, who had spent almost nothing because all their
costs had been picked up by the company in Botswana.
The breakdowns of expenditure and the figures adopted for 2005/2006 are shown in the Table
below.
Table A4.4: Breakdown of Spending on the Same-day Visit Trip - Percent
2005
Statistic
2006
Statistic
Adopted for
2005/2006
Money Spent on Accommodation 1.1% 3.9% 2.5%
Money Spent on Meals and Drink 2.7% 4.0% 3.3%
Money Spent on Transport 3.0% 1.9% 2.5%
Money Spent on Recreation 0.1% 0.8% 0.5%
Money Spent on Shopping 64.4% 0.1% 63.2%
Money Spent on 'Other' Spending 28.8% 89.3% 28.0%
Total 100.0% 100.0% 100.0%
47

The breakdown of the total Same-day visitor spending in 2005/2006 is shown in the Table A4.5
below.
Table A4.5: Breakdown of the Total Spending by Same-day visitors in 2005/ 2006
Total Expenditure by Day visitors P million 63
Country of Residence Percent Total Spend P
million
Money Spent on Accommodation 2.5% 1.58
Money Spent on Meals and Drink 3.3% 2.08
Money Spent on Transport 2.5% 1.58
Money Spent on Recreation 0.5% 0.32
Money Spent on Shopping 63.2% 39.82
Money Spent on 'Other' Spending 28.0% 17.64
Total 100.0% 63.00
48

ANNEX 5: TOURISM CHARACTERISTIC PRODUCTS AND ACTIVITIES
Tourism Characteristic Products
A. Specific products
A.1 Characteristic products
1 – Accommodation services
1.1 – Hotels and other lodging services
1.2 – Second homes services on own account or for
free
2 – Food and beverage serving services
3 – Passenger transport services
3.1 Interurban railway
3.2 Road
3.3 Water
3.4 Air
3.5 Supporting services
3.6 Transport equipment rental
3.7 Maintenance and repair services
4 – Travel agency, tour operator and tourist guide
services
4.1 Travel agency
4.2 Tour operator
4.3 Tourist information and tourist guide
5 – Cultural services
5.1 Performing arts
5.2 Museum and other cultural services
6 – Recreation and other entertainment services
6.1 Sports and recreational sport services
6.2 Other amusement and recreational services
7 – Miscellaneous tourism services
7.1 Financial and insurance services
7.2 Other good rental services
7.3 Other tourism services
Linked to CPC
Source: TSA:RMF Figures 4.3 & 4.4
Tourism Characteristic Activities
1 - Hotels and similar
2 - Second home ownership (imputed)
3 - Restaurants and similar
4 - Railway passenger transport
5 - Road passenger transport
6 - Water passenger transport
7 - Air passenger transport
8 - Passenger transport supporting industries
9 - Passenger transport equipment rental
10 - Travel agencies and similar
11 - Cultural services
12 - Sporting and other recreational services
Linked to ISIC Rev.3 and SICTA
49

ANNEX 6: BASIC PRICES AND PURCHASERS’ PRICES
Source: SNA 93
50

ANNEX 7: SUPPLY AND USES OF GOODS AND SERVICES
Source: SNA 93
51

ANNEX 8: DEFINITIONS IN TOURISM
Definitions: Basic Tourism Units
Visitor: refers to any person travelling to a place other than that of his/her usual environment for
less than 12 consecutive months and whose main purpose of trip is other than the exercise of an
activity remunerated from within the place visited.
International visitor: refers to any person travelling to a country other than the one in which s/he
has his/her usual residence, but outside his/her usual environment, for less than 12 consecutive
months and whose main purpose of trip is other than the exercise of an activity remunerated from
within the country visited.
Domestic visitor: refers to any person residing in a country, who travels to a place within the
country, other than that of his/her usual environment for less than 12 consecutive months and
whose main purpose of trip is other than the exercise of an activity remunerated from within the
place visited.
Tourists (overnight visitors): is a visitor who stays at least one night in a collective or private
accommodation in the place visited.
An international tourist is an international visitor who stays at least one night in a collective or
private accommodation in the country visited. Domestic tourist refers to a domestic visitor who
stays at least one night in a collective of private accommodation in the place visited.
Same Day Visitor: a visitor who does not spend the night in a collective or private accommodation
in the place visited. An international same-day visitor is an international visitor who does not spend
the night in a collective or private accommodation in the country visited. This definition includes
cruise passengers (see below). A domestic same-day visitor is a domestic visitor who does not
spend the night in a collective or private accommodation in the place visited.
Cruise passengers: who arrive in a country on a cruise ship and return to the ship each night to
sleep on board even though the ship remains in port for several days. Also included in this group
are, by extension, owners or passengers of yachts and passengers on a group tour
accommodated in a train.
Direct Transit passengers: (who do not formally enter the country) who do not leave the transit
area of the airport or the port, including transfer between airports and ports.
(See UNWTO‟s Recommendations on Tourism Statistics and Concepts, Definitions and
Classifications for Tourism Statistics for further information).
52

ANNEX 9: DETAILING THE DEFINITIONS
Category of traveller
Commuters travelling to regular place of
work
Border Workers
Businessmen travelling between ancillary
establishments of their firm
Persons without a fixed place of work (e.g.
lorry drivers)
Commuters travelling to regular place of
Study
Students
Persons travelling on a routine basis
Border shoppers
Travellers to localities in the direct vicinity
of the place of residence
Long term migrants
Short term migrants
Persons moving to another place within the
same country for an intended stay of more
than a year
Persons moving to another place within the
same country for an intended stay of less
than a year
Diplomats and dependents
Members of armed forces
Nomads
Refugees
Prisoners
International transit passengers
Cruise Passengers
Persons leaving their own country but not
entering another (e.g. some yachtsmen)
Nationals Living Abroad
Working Holiday Visitors
Transportation Crews (e.g. airline crew)
Treat in following way:
Exclude because seen as travelling in usual
environment
Exclude because seen as travelling in usual
environment
Include, if travelling outside their usual
environment
Include, if travelling outside their usual
environment, but exclude if travelling to head
office or fleet base
Exclude because seen as in usual environment
Include, if outside usual environment
Exclude because seen as in usual environment
Include, if outside usual environment
Exclude because seen as in usual environment
Exclude, because remunerated in place visited
Exclude, because remunerated in place visited
Exclude, because beyond staying beyond 12
months
Exclude when remunerated from within the
place visited
Exclude when travelling to duty station
Exclude when travelling to duty station
Exclude
Exclude
Exclude
Exclude when they do not enter the country
Treat as Same-day visitors
Domestic visitors
Include as tourists, but as separate segment
Include if main motivation is place visited
Include as tourists or same-day visitors
Source: UNWTO Technical Manual – Concepts, Definitions and Classifications for Tourism
Statistics – Page 23 and Appendix B
53

ANNEX 10: TRAVEL CREDIT & DEBIT ACCOUNT
TRAVEL CREDIT & DEBIT ACCOUNT (P ‘000)
Travel
Transport
Credit Debit Credit Debit
2000
Q1 33,478 67,815 6,079 52,043
Q2 65,865 57,340 13,954 50,457
Q3 2,204 57,295 14,389 58,433
Q4 2,619 41,116 9,827 44,759
104,166 223,567 44,248 205,692
2001
Q1 45,713 50,089 15,837 43,888
Q2 115,948 50,335 20,352 49,630
Q3 242,019 61,292 31,194 54,845
Q4 87,652 65,138 20,572 47,530
491,332 226,854 87,954 195,894
2002
Q1 92,561 59,711 23,391 43,388
Q2 77,706 69,434 12,111 44,756
Q3 36,867 63,220 15,407 45,059
Q4 73,550 65,316 17,324 59,406
280,685 257,681 68,233 192,610
2003
Q1 118,673 74,401 79,173 71,493
Q2 49,852 32,644 16,978 35,497
Q3 166,449 37,987 8,841 44,876
Q4 44,779 38,161 8,367 70,594
379,754 183,192 113,359 222,459
2004
Q1 263,686 190,067 47,373 75,700
Q2 366,649 40,859 60,854 53,838
Q3 235,599 49,282 3,373 68,452
Q4 101,662 45,621 22,634 83,083
967,597 325,829 134,234 281,072
2005
Q1 187,852 55,251 31,010 53,619
Q2 192,566 74,226 19,150 85,723
Q3 360,723 60,602 41,468 65,177
Q4 383,770 75,184 61,726 506,248
1,124,912 265,262 153,353 710,767
2006
Q1 15,703 71,992 64,941 71,441
Q2 381,529 58,460 44,218 81,387
Q3 243,914 74,141 45,664 83,539
Q4 196,680 45,856 38,312 700,377
837,826 250,449 193,135 936,744
2007
Q1 108,830 83,941 173,749 84,134
Source: Bank of Botswana
54