Business News

Visa waiver excites tourism industry

Listen to this article

Malawi Tourism Council (MTC) says industry operators are banking hopes on the visa fees waiver for improved international tourism business and foreign exchange generation.

The sentiments follow pronouncements by President Lazarus Chakwera in the State of National Address at the opening of the 50th Session of Parliament in Lilongwe on Friday that to maximise tourism potential and increase its contribution to the gross domestic product (GDP) and forex generation, his government will be waiving visa fees with immediate effect.

The President said the waiver will apply to nationals from the United Kingdom, United States of America, The Netherlands, Germany, Australia, Belgium, Italy, France, Poland, Nordic countries, namely Norway, Finland, Sweden and future markets, including China, Russia and Canada.

Speaking in an interview on Saturday, MTC chairperson Justin Dzinkambani said increased tourism traffic means good business for hotels and lodges, which has been down following the Covid-19 pandemic.

He said: “Our members are excited to see this being implemented as soon as possible to see the fruits of tourism investment the private sector is making in Malawi.

“Most of our international tourists come from Europe, America and Asia and this opening and waiver will encourage more tourists to visit Malawi and open up to the world. They will now be able to package Malawi as a tourist destination.”

In 2015, the Malawi Government imposed visa fees for all countries, with tourists coming to Malawi required to pay $50 (K51 800) per single entry while a multiple entry visa for six months costs $150 (K155 400). A multiple entry visa for 12 months costs $250 (K259 000).

This means that following the waiver, tourists from these countries will not be required to pay the fees.

Malawi has been struggling to tap from the global tourism boom since the onset of the Covid-19 pandemic, with figures from the World Travel and Tourism Council indicating that in 2021, the country generated $14.6 million (about K15.1 billin) from international visitor spending, a decline from the previous year’s $34.2 million (about K35 billion).

Before the pandemic in 2019, Malawi generated $64.7 million (about K67 billion) in international visitor spending, which is 47 percent less of what the country generated in 2020.

On the other hand, the number of international visitors have been declining, with National Statistical Office 2022 Statistical Year Book indicating that the numbers dropped from 871 221 in 2018 to 423 209 in 2021.

The data also shows room occupancy in hotels has diminished, averaging 20 percent as of 2021 from 32.9 percent in 2018.

In an interview on Saturday, Minister of Tourism Vera Kamtukule said the visa waiver will make it easier and cheaper for tourists.

She said what is needed now is facilitation of seamless travel for visitors.

Said Kamtukule: “I hope that the relevant policyholders shall quickly move to the administrative arrangements so that this is effective in time for our tourism season internationally immediately after the rainy season.

“International visitations bring in foreign exchange and this will help as so many countries that we compete with either have cheaper visa while some have removed the visa requirement.”

The Malawi 2063, the country’s long-term development plan, recognises tourism as a priority sector that can be used as a vehicle for economic growth and poverty alleviation.

In the current financial year, Treasury introduced several incentives to promote investments in the sector and these include free import duty, free import excise and free value-added tax on the importation of a number of goods. Last year, the tourism industry contributed about 5.8 percent to the GDP, according to the 2022 Malawi Government Annual Economic Report.

Related Articles

Back to top button