- as millions in approved tourism funds fail to materialise
The Botswana Tourism Organisation (BTO) is battling a deepening financial crisis marked by declining government support, widening structural deficits, and millions of Pula in approved funding that has allegedly never been disbursed.
The revelations emerged during a presentation to the Parliamentary Standing Committee on Statutory Bodies and State Enterprises, where Acting Chief Executive Officer, Justice Ofentse, outlined the mounting financial pressures threatening the organisation’s operations.
Despite government repeatedly identifying tourism as a key economic diversification pillar under the National Development Plan 12 (NDP 12), figures presented before the committee show that annual government subventions to the BTO have steadily declined over the past four financial years.
The organisation received P92.9 million during the 2021/22 financial year before the allocation dropped to P91.5 million in 2022/23 and slightly declined again to P91.1 million in 2023/24. For the 2024/25 financial year, the allocation further decreased to P86.5 million.
The shrinking financial support comes at a time when the tourism sector is still recovering from the devastating impact of the COVID-19 pandemic and when Botswana is expected to aggressively market itself as a global tourism destination.
At the same time, the BTO’s operational costs have risen sharply. Management revealed that the organisation’s total expenditure ballooned from approximately P97.4 million to P172.6 million over a five-year period, creating persistent structural deficits.
To bridge the widening funding gap, the organisation has increasingly relied on alternative revenue streams, including drawing funds from the Tourism Development Fund (TDF) and utilizing a five percent share of concession royalties to sustain core marketing and promotional activities.
However, the organisation says even these alternative funding mechanisms have failed to provide relief due to major disbursement challenges.
According to BTO management, the TDF Secretariat approved funding requests worth more than P42.1 million over the past three years for participation in international travel expos, trade fairs, and local tourism promotion events. Yet, the organisation claims that none of the approved funds have been received to date.
Management described the situation as a major administrative setback that has severely undermined the organisation’s ability to execute its mandate effectively.
The failure to access the approved funding reportedly resulted in Botswana missing participation opportunities at several key international and domestic tourism exhibitions where local tourism operators traditionally secure business deals, partnerships, and international market exposure.
The funding shortfalls have also intensified concerns over the long-term sustainability of the organisation’s current operating model.
BTO leadership told the parliamentary committee that the existing funding structure is no longer viable and warned that the organisation may be forced to rethink and redesign its entire funding framework if it is to continue functioning effectively in future. The developments come amid growing pressure on government entities to improve financial sustainability while continuing to deliver on national economic transformation goals.
