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| Billy Banda (Shot By EYE LEVEL ART_Francesco Jnr) |
Malawi tourism sector players tipped to work out ways of attracting domestic tourism for the sector to register growth.
The Malawi tourism sector recently held Annual General Meeting where sector players noted that the sector is registering small number of local tourist’s as compared to international tourists.
As the sector is thinking deep on ways to make the tourism sector more attractive to local tourists, one of the country's human rights activist, Billy Banda also Chairperson for Malawi Gaming Board and National Lotteries Board says introduction of ‘special affordable rates’ for the local visitors is a solution.
While sharing similar concern with the tourism sector players, however, Banda observed that the low number of visits to Hotels, resorts and tourists attraction places by locals is because charges are much higher as compared to the income levels of many Malawians who cannot afford to pay for services offered by hotels, holiday resorts and other service providers in the tourism sector.
“What the tourism is looking for and to make it more significant and more important we need to start with our selves.” He said “However one of the key challenge contributing to the lack of commitment by citizenry is because there is no policy that guarantee that a local citizen must be charged a low amount that someone can afford to bring a family to such kind of places.”
He suggested that Malawi Tourism Council need to come up with a policy that inspires local citizenry to participate and support the tourism industry and that one of the key component be that tour operators, travel agencies and other agencies should work out packages which Malawians could conveniently afford.
He emphasized that tourism sector is a key sector for Malawi economy and backbone of the international tourism.
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| Billy Banda (Shot By EYE LEVEL ART_Francesco Jnr) |
“We cannot say tourism is a failed industry, tourism is another big potential for the economy and if ordinary citizens were committed to support the industry and are given fair charges that can also be a better way. Once that is put in place Malawians will go out strongly and support the tourism sector.” Said Banda but stressed that efforts needs to be made to provide domestic visitors economy accommodation, meals and many other services
But Banda also asked Government to support tourism industry with incentives and reducing interest rates in commercial banks. On this, Banda noted that although access to loans is a challenge in the sector, cost of borrowing in most banks are much higher with short period of time to repay.
“Government is also a bigger player” he noted then urged it to look at the local operators needs and challenges saying “They must be given some incentives, even financing mechanisms they have to be given infrastructure banks, loans that are more manageable, loans that are not crippling the hotel sector.”
Issues Making Malawi Tourism Sector Too Expensive For Domestic Tourists
The Malawi tourism sector is facing number of challenges that includes visa issues, lack of skilled workers even lack of tourism statistics which is affecting potential investors to advance with tourism business in the country.
However, key challenges making the prices for services beyond reach of the domestic traveler are particularly issues on lack of sector specific incentives for investors and lack of access to finance and cost of borrowing.
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| Florentine Kabefu |
Florentine Kabefu, Chairperson for Malawi Tourism Council, says cost of operating businesses in Malawi is very expensive in tourism.
Kabefu mentioned a lot of duties and taxes, and said “so that is a big challenge.”
She pointed out that in order for them in the sector to make Malawi a place of excellent domestic tourism and where Malawians can go and have access to tourists products “we need to work on some of the costs that our tourism operators are facing in order for them to make them cheaper.”
During the recent Malawi Tourism Council Annual General Meeting, minister of Industry, Trade and Tourism, Joseph Mwanamvekha highlighted key steps that Government is undertaking to improve the tourism business environment to make it more competitive and attractive.
Mwanamvekha said his ministry together with the ministry of Finance and Economic Planning are working out on issues of incentives.
“As such proposals for incentives for the tourism sector shall become part and parcel of a comprehensive tax review which government will undertake soon as part of the ongoing Public Sector Reforms,” assured Mwanamvekha adding that Government is also developing a Tourism Investment Master Plan to guide the development of the sector and it will included mapping and zoning of potential sites across the country and that the plan shall also include development of specific incentives to encourage participation in development on the identified sites
On access to finance, the Minister further promised that Government is undertaking a study on the availability of setting up a Development Bank but at the moment the only opportunities for SMEs are only MARDEF and the Export Development Fund.
“As for cost of borrowing is concerned, it is my belief that as the economic fundamentals or our economy stabilizes, interest rates shall also become more favourable.” Said Mwanamvekha who also hinted that he has asked tourism department to finalise the Tourism Policy before the end of 2nd quarter of the coming financial year
