Tourism Statistics - Government of Botswana

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.
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