By Benadetta Chiwanda Mia:
As Malawi purposefully runs with the Malawi 2063 (MW2063)—the country’s long-term development plan—the tourism sector is emerging as a cornerstone of economic transformation.
According to the Malawi Government Annual Economic Report for 2024, the sector’s total contribution to gross domestic product (GDP) was projected at K467.5 billion in 2023. For 2024, the government projects the sector’s direct contribution to GDP to be at 5.6 percent.
Known as the Warm Heart of Africa, Malawi boasts of a rich cultural heritage, stunning landscapes, and remarkable biodiversity.
Efforts to bolster the tourism industry are deeply intertwined with economic growth, employment, and community development.
The government’s Agriculture Tourism, and Mining (ATM) Strategy identifies tourism as a priority sector to enhance Malawi’s economic footing.
The strategy was introduced by government in the 2024-25 budget, framed to help the economy recover from prevailing challenges that negatively affected progress as well as domestic revenue collection.
The ATM Strategy aims to help Malawi recover from challenges that have hindered development and affected domestic revenue.
Major government decisions to boost tourism include the removal of visa requirements for 79 countries, facilitating easier inflow of tourists and allocating K4.8 billion to tourism development in the 2024-25 budget.
Commentators view the sector as the next big thing. But they say more needs to be done to harness it.
Economics Association of Malawi President Bertha Chikadza feels Malawi’s tourism sector offers numerous investment opportunities, especially in eco-tourism, cultural and adventure tourism, hospitality infrastructure, and community-based tourism.
“The country’s rich biodiversity, protected areas and cultural heritage provide strong potential for development. Malawi has an improving investment environment, especially with the government prioritising tourism in growth strategies,”Chikadza noted
However, Chikadza observes that the sector faces significant challenges, including poor infrastructure, limited global marketing, competition from more established regional destinations and environmental risks.
“Even with good policies, inadequate infrastructure, especially in remote tourist locations, remains a significant challenge.
To develop the sector, Chikadza proposes that both government and non-state actors must play important roles.
“The government should focus on infrastructure development, particularly in roads and airports, to improve accessibility, while also launching robust international marketing campaigns to raise Malawi’s profile as a tourism destination.” Chikadza said,
She also emphasises the need to for government to establish clear, investor-friendly policies and offer more targeted incentives which would enhance the investment climate.
“Non-state actors, including the private sector, can contribute by improving service quality, investing in innovative tourism models, and collaborating on international partnerships. NGOs and development partners can support community-based tourism and capacity building for local tourism entrepreneurs,” she added.
Malawi’s tourism revenue is projected to hit $260 million by 2028 from $220 million in 2023, representing a 2.7 percent average annual growth. A marginal growth by the look of it.
To enhance revenue generation in the sector, the country must look at diversifying tourism offerings beyond mass tourism to include niche tourism products that would attract a wider audience.
In a world where digital advancements are taking centre stage, improving digital marketing efforts, forming partnerships with international tour operators and enhancing the overall tourist experience could lead to higher tourist inflows and spending.
Developing Malawi’s tourism sector requires heavy investments, especially towards infrastructure development. Such developments would be a far-fetched dream if left to government alone to foot the bill.
underway
This is where entities like the Public Private Partnerships (PPP) Commission comes in to collaborate with private investors for meaningful developments in the sector, according to the commission’s Chief Executive Officer Patrick Kabambe.
“Our mandate as a commission is to develop projects that could have been done by government but then we are looking at private investors to bring their financing, their design and their expertise so that they are implemented in a much more efficient and effective way,” Kabambe said.
Kabambe cited projects like the management and development of Majete, Nkhotakota, and Liwonde national parks as success stories under the PPP arrangement.
“Before African Parks came in as concessionaire, the parks were run down and community relations were very poor. Now the parks are well-stocked, well-run and a major source of tourist income,” Kabambe underlined.
He further disclosed that PPPC is currently working on three other projects to make them bankable for tourist investment.
“These include the development of an eco-lodge at Golden Sands in Cape Maclear, an integrated tourism facility in Salima and a cable car on Mulanje Mountain. Feasibility studies for these projects are set to begin shortly,” he explained
Kabambe added that a number of interested investors have approached the commission, and they are in the process of starting the negotiations that will help them identify a suitable investors to develop the sites.
Speaking at a Tourism Marketing Strategies Symposium at Amaryllis Hotel in Blantyre recently, Minister of Tourism Vera Kamtukule emphasised that the MW2063 vision, aiming to transform Malawi into a self-reliant and industrialised middle-income country, requires deliberate efforts to leverage the tourism sector.
“Tourism is a collective effort, deeply interconnected with sectors across our economy. The time has come to raise the profile of tourism, not just as an industry, but as a driver of growth for all Malawians. Kamtukule wrote on her Facebook post.
Despite the optimistic outlook, the tourism sector faces significant challenges. Infrastructure deficits, regulatory bottlenecks and skills shortages are among the hurdles that need to be overcome.
Efforts being championed by government like the ATM Strategy need to be supported with proper financing. Therefore increased budget allocations and partnerships with private investors are crucial in driving the development of critical infrastructure.
On the other hand, climate change poses a significant threat to Malawi’s economy, given its dependence on climate-sensitive sectors and its low capacity for adaptation due to existing macroeconomic vulnerabilities.
The tourism sector has not been spared, with massive destruction of infrastructure in strategic tourist destinations along lakeshore areas due to rising water levels in Lake Malawi.
Preliminary findings from the National Planning Commission (NPC) released in August 2024 estimate damages of K6.3 billion and revenue losses of K2.5 billion for hotels and lodges along the lake due to water overflows.
While government has been kin on reforms to facilitate development of the tourism sector, more still needs to be done to address remaining regulatory bottlenecks to create an investor friendly environment that will attract both local and international investors.
This post was originally published on here
