Tourism contribution set to rise by 3.7%

The direct contribution of travel and tourism to gross domestic product (GDP)—the broadest measure of economic growth—is expected to rise by 3.7 percent to K143 billion in 2017 from K138 billion (3.4 percent of GDP) in 2016 on account of economic activities generated by industries in the sector.

According to figures from the World Travel and Tourism Council (WTTC), the direct contribution of travel and tourism to GDP is projected to grow by 4.9 percent to K231.8 billion (3.4 percent of GDP) by 2027.

This is, however, in contrast to government’s projections of seven percent growth in 2016 to K230 billion which tourism players argued was a giant leap to achieve.

In its recently published Travel and Tourism Economic Impact 2017 country profile for Malawi, WTTC says this reflects the economic activity generated by hotels, travel agents, airlines and other passenger transportation services (excluding commuter services).

The direct contribution of travel and tourism to GDP reflects the internal spending on travel and tourism (total spending within a particular country on travel and tourism by residents and non-residents for business and leisure purposes) as well as government individual spending (spending by government on travel and tourism services directly linked to visitors, such as cultural or recreation).

Tourism was among nine priorities outlined in the Malawi Growth and Development Strategy II (MGDS) expected to contribute sustainable economic growth and diversify the country’s foreign exchange earnings.

In a statement published

recently, WTTC president David Scowsill said the outlook for the travel and tourism sector in 2017 remains robust and will continue to be at the forefront of wealth and employment creation in the global economy, despite the emergence of a number of challenging headwinds.

“As nations seem to be looking increasingly inward, putting in place barriers to trade and movement of people, the role of travel and tourism becomes even more significant, as an engine of economic development and as a vehicle for sharing cultures, creating peace, and building mutual understanding,” he said.

In an earlier interview, director of tourism in the Minister of Industry, Trade and Tourism, Isaac Katopola, said government had undertaken intensive marketing strategies in major source markets to promote Malawi as a major destination for tourists, to boost revenue.

“With the reforms that government has undertaken, especially in the aviation sector, we will be attracting more flights once we upgrade Likoma into an international airport and upgrade  Kamuzu International Airport to accommodate more passengers,” he said.

Malawi Tourism Council (MTC) chairperson Florentina Kabefu is on record having said the feat is difficult to achieve if there are no proper strategies to facilitate its growth.

In 2015, the sector brought in about K105 billion, which is about 3.4 percent of GDP, according to the Malawi Government Annual Report 2016.

According to the report, the total contribution of travel and tourism to employment, was 471 000 jobs in 2016 representing 6.2 percent of total employment.

The report has since predicted a fall in share of total national investment from 4.0 percent in 2017 to 3.6 in 2027. In terms of ranking, Malawi was positioned 130 out of 185 economies. However, according to its contribution to GDP, Malawi was ranked 130. n