Lack of marketing stalls tourism growth
Malawi’s tourism sector has suffered a decline in international visitors over the past four years, situation players in the sector say needs intensive marketing strategies to promote Malawi as a destination of choice.
Malawi Tourism Council (MTC), a grouping of tourism operators, said it is worrisome that the industry has not grown and observed that other than the Covid-19 pandemic which dealt the industry a heavy blow, the country has not done much to promote tourism.
According to the National Statistical Office (NSO) 2022 Statistical Year Book, the number of visitors coming to Malawi has been on a downward spiral from 871 221 in 2018 to 423 209 in 2021.
The data also shows room occupancy in the country’s hotels has diminished averaging 20 percent as of 2021 from 32.9 in 2018.
The Malawi Government recognises tourism as a priority sector that can be used as a vehicle for economic growth and poverty alleviation as outlined in the national development plan the Malawi 2063 (MW2063).
The MW2063 recognises that if developed, the tourism sector can promote job creation in both urban and rural areas.
MTC chairperson Justin Dzinkambani, while indicating that the decline in visits is as a result of the Covid-19 pandemic, said there is need for more efforts in selling Malawi as a tourism destination.
He said in an interview on Tuesday investment in tourism product development should be significant to boost tourist numbers that can sustain the industry.
Dzinkambani said: “The figures show a true picture of the situation we have had partly as a result of Covid-19 pandemic. Again the ban on travel by the airline travels in the world also affected the business in Malawi on international tourism.
“Nonetheless, a lot needs to be done one notable clear issue is development of tourism products to be meaningful and sensible.
“Beyond these products we need to create better infrastructure for these with passable road network but also look at agriculture tourism to enhance our product.”
He further urged government to provide the necessary enablers for industry operators such as road network infrastructure through which the players can utilise to enhance business facilities.
“Government needs to assist in creating a business environment that would enable the private sector to develop faster. We need a legal framework that is seamless and friendly to help tourism sector growth,” he said.
In the 2021 Malawi Government Annual Economic Report, government conceded that lack of zoned land for tourism investment and limited investment incentives are some of the factors that have been restricting Malawi from turning into a leading tourism and investment destination.
Treasury introduced several incentives promote investments in the sector, which is touted to have potential to be Malawi’s third foreign exchange earner and considered a catalyst for economic and social development.
They include free import duty, free import excise and free value-added tax on the importation of a number of goods.
Hotels, lodges and inns with 50 rooms and above can also benefit from duty exemptions available on furniture and furnishings and two new passenger carrying motor vehicles.
Minister of Tourism, Culture and Wildlife Michael Usi is on record as having said government is banking on the Tourism Master Plan for more jobs and reduce unemployment in line with Malawi 2063, the country’s long-term development strategy.
Before the pandemic, the sector’s contribution to GDP was 10.3 percent ($9.6 trillion) in 2019, falling to 5.3 percent (about $4.8 trillion) in 2020 when the pandemic was at its height, which represented a staggering 50 percent loss.
By mid-2020, Malawi lost over K42 billion in revenue through cancellation of confirmed bookings and 300 000 jobs jobs following the Covid-19, according to the 2021 Annual Economic Report.
