Commerical Section

Tourism and Investment

"Peaceful Botswana, just north of South Africa, is attracting new attention. 'Botswana is a shining light in Africa, and that hasn't gotten around yet. That's the beauty of it,' said Julian Harrison, president of Premier Tours in Philadelphia and a frequent visitor. Elephants, lions and giraffes are among the wildlife spotted on the savannas, wetlands and salt pans of the relatively well-off country. You also might spy critters strolling by your lodge veranda or from the relative safety of a wooden platform in a tree. Most travelers visit the Okavango Delta, the largest inland delta on Earth, teeming with birds, or Chobe National Park, with tens of thousands of elephants gathering along the river.

- Washington Post, January 4, 2004

For many years, Botswana’s flourishing economy has been based on its diamond wealth and livestock industry, but now tourism has been graded as one of the top engines of economic growth. The Washington Post just rated it as one of the top 5 tourist destinations globally, and it regularly attracts visitors from all over the world. The tourism industry is one of the sectors where Botswana has natural comparative advantage to compete regionally and internationally. In 2001 / 2002 the sector’s contribution to GDP was estimated at about 5 percent. According to the Investor’s Guide 2002/3, the Government of Botswana is dedicated to encouraging private investment in the tourism industry.

While the private sector investment in the Botswana economy has increased from P 150 million (US$ 30 million) to P 500 million (US$ 100 million) over the last ten years, tourism investment itself has grown faster from P 12 million (US$ 2.4 million) to P 55 million (US$ 11 million). The trade, hotel and restaurant sector grew by about 10% per annum in recent years, indicating the huge potential of tourism.

Many organizations are involved in the promotion of tourism in Botswana. Botswana Export Development and Investment Authority (BEDIA) is responsible for promoting Botswana as an exceptional investment destination. HATAB (Hotel and Tourism Association of Botswana) is the private sector administrator of the tourism sector. Government consults HATAB on policies, legislative issues and governmental regulations that affect its members.

Botswana’s tourism sector is currently going through some major changes. The National Tourism Board, a parastatal body soon to be established, will promote, market and regulate international tourism. The main benefit would be the provision of a more responsive and business minded organization for the development of tourism. A Tourism Development Fund has been set up to fund training programs for employees in the tourism sector

The government is inclined to encourage longer-term investment in tourism, including joint ventures, conference facilities and community-based organizations. In order to develop both the wildlife and tourism industry, Government has embarked on the upgrading of facilities in the National Parks and Game Reserves to improve their regional competitiveness. It is also keen on eco-tourism in which the private investor would work with the local communities that directly benefit the local people. Government is also in the process of developing a community-based natural resources management policy.

The tourism industry offers many avenues for new investors who are prepared to operate within the set national strategy of tourism. All foreign investors are encouraged to operate joint ventures with citizens. Foreign investors wishing to invest in Botswana are required to transfer technology to Botswana as well as to transfer skills to the citizens by promoting participation in supervisory positions and senior management levels.

Foreign investors wishing to invest in the services sector are expected to bring into Botswana a minimum investment of US$ 200 000 for tourism enterprises wholly owned by non-citizens. In the case of a joint venture they should bring a minimum investment of US$ 100 000. In both cases the number of foreign shareholders or directors is limited to two.

The Investors Services Center department under BEDIA provides investor services to both new and existing foreign and citizen enterprises through its One Stop Service Center. Under this facility BEDIA works with contact officers in government and parastatal institutions that provide necessary services to enterprises. The idea is to enable investors in all sectors to secure all clearances and approvals necessary to set up and operate business in the country from under one roof. The assistance provided includes company registration, operating licenses, visitors’ visa, residence and work permits as well as requirements involving land, factory buildings, and utilities.


Tourism Industry Contacts:

Ministry of Environment Wildlife and Tourism

Department of Tourism
P / Bag 0047
Gaborone, Botswana
Tel: (267) 395 – 3024
Fax: (267) 390 - 8675
Email: botswanatourism@gov.bw
Contact. Ms. T. Ndzinge

Hotel & Tourism Association of Botswana (HATAB)
P / Bag 00423
Gaborone, Botswana
Tel: (267) 395 – 7144
Fax: (267) 390 – 3201
Email: hatab@info.bw
Contact: Mr. O. Merafhe

BEDIA
P. O. Box 3122
Gaborone, Botswana
Tel: (267) 318 1931
Fax: (267) 318 1941

Sources: Discover Botswana 2003, Budget Speech 2003/2004,
Foreign Investment Code 2002.