- says it supporting over 50,000 direct jobs
- contributes hundreds of millions in tax and royalties to government
- Refutes claim that the sector benefits only a small segment of society
The Hospitality and Tourism Association of Botswana (HATAB) has asserted that the tourism industry is a significant employer, supporting over 50,000 direct jobs, and a vital source of foreign exchange.
The association refuted media reports regarding the tourism industry’s impact on Botswana’s economy and communities.
In a public statement, HATAB stated that in some rural areas of the country, the tourism sector is the largest single source of employment and income.
“There are 360 companies that the tax authorities have categorised as Large Tax Payers because each pay more than P10 million. These companies contribute seventy per cent (70%) of the income tax. Ten per cent (10%) of these large taxpayers are in the tourism industry,” read the statement.
The association says it is clear, therefore, that the tourism industry contributes hundreds of millions in tax and royalties to the government, driving social and economic development. “Indeed, for some of the large tourism companies, tax and related payments to government account for the largest single share of the value added generated.”
Refuting claim that the tourism sector “benefits only a small segment of society, HATAB argued that in addition to taxes and royalties, the tourism industry pays substantial lease fees directly to local communities, for sub-leases whose rights are owned by those communities.
HATAB complained that tourism businesses are unfairly accused of extracting wealth clarifying that wealth is created through investment, not extraction. “The same applies to the tourism industry, where entrepreneurs invest resources first to generate growth. The level of investment required for high quality tourism facilities is very high, especially in remote areas of the country, and it is only to be expected that part of the returns from economic activity are used to repay that investment.”
The association also decried improper motives regarding the repatriation of profits noting that the policy applies across all sectors, not just tourism. “It is important to note that Botswana’s investment laws allow for remittances and the full repatriation of profits and dividends, which serve as crucial incentives for foreign investors, boosting the country’s investment climate.”
On issues of leakages, HATAB clarified that like other businesses in Botswana, the tourism industry depends on imports to operate effectively complaining that the industry’s imports of goods and services are often mistaken for leakages. “Labelling these legitimate business transactions as ‘leakages’ is misleading, conceptually flawed, unnecessarily pejorative, and unfairly singles out the tourism industry.”
Regarding the adopted the concept of high value, low impact Strategy, HATAB acknowledged that tourism has grown throughout the country on the basis of sports and adventure tourism, cultural tourism and has enormous potential for further growth.
The concept of 1990 which prioritizes attracting fewer, higher-spending visitors to minimize environmental is part of the Tourism Policy meant to protect the ecologically sensitive Okavango Delta. But HATAB noted that adopting a high value-low impact strategy for one part of the country does not preclude the adoption of different strategies in other parts of the country.
“Botswana’s tourism accommodation is not solely about luxury lodges in the Okavango, but also comprises guest houses and hotels throughout the country, which provide investment and income generation opportunities for both individuals and businesses,” it concluded.
