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Outline: Introduction

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Presentation on theme: "Outline: Introduction"— Presentation transcript:

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2 Outline: Introduction
Tourism in Sub Saharan Africa and Malawi: Overview Benefits of Tourism: Overview Accommodation Sector in Malawi Gaps in accommodation sector Sunbird Malawi Initiative to address the Gap Case Studies: Rwanda, Kenya and Zambia Conclusion and Recommendations

3 The United Nations has designated 2017 as the International Year of Sustainable Tourism for Development. Provides an enormous opportunity to further showcase the tremendous economic, social, cultural, environmental, and heritage value that the sector can bring Hotel standards are becoming more international with a work environment that promises not only to be more global in scope, but increasingly culturally diverse at home. Both domestic and international travel are influenced by the rising importance of international business.

4 TOURISM IN SUB–SAHARAN AFRICA AND MALAWI
3.8 million jobs (including 2.4 million indirect jobs) could be created by the tourism industry in Sub Saharan Africa by 2021 (WTTC 2011). Global international tourist arrivals have been growing steadily at 4–5 percent a year since the 1950s. In Malawi in 2015, 205,000 jobs representing 2.8% contribution to total employment jobs were in Travel and Tourism. The direct contribution of Travel & Tourism to GDP was MWK mn (3.4% of total GDP) in 2015. In Malawi the transforming travel and tourism industry poses another set of challenges, largely driven by the experienced and demanding consumers.

5 VISITORS TO MALAWI By Percentages
Business oriented visitors who now make up about 73% of all arrivals have increased from 434,900 in 2010 to about 589,100 in 2015, up by 35% percent. As a proportion of total visitors, business travelers have increased by 15% points since 2010. However, Holiday travellers have dropped by 7% in the same period. By Percentages

6 BENEFITS

7 BENEFITS Employment In Malawi in 2015, 205,000 jobs representing 2.8% contribution to total employment jobs were in Travel and Tourism. Foreign Exchange Tourism is the 3rd Foreign exchange earner. Visitor exports(Foreign Exchange) generated MWK17,172.4mn (2.2% of total exports) in 2015 Value added Tax& Income Tax Tourism contributed MK170 billion with of 16.5% of the amount being value added tax.

8 Investment Travel & Tourism investment in 2016 was MWK 20,423.5mn, 4.0% of total investment (USD28.8mn). It should rise by 3.7% in 2017, and rise by 4.0% pa over the next 10 years to MWK 31,306.2mn (USD44.2mn) in 2027, 3.6% of total. 1 % of the hotel services bill is accounted as Tourism Levy. The annual tourism levy that is paid by the sector to the Department of Tourism is estimated at just over MK300 million.

9 THE ACCOMODATION SECTOR IN MALAWI
During the year ended 31st December, 2015, there were 804,912 visitors to Malawi. This represents a decrease of 1.7 percent from the year ended 31st December, 2014.Hotels/Lodges/Inns | Rest Houses | Private House | Other

10 SUNBIRD INITIATIVE TO ADDRESS THE GAPS
Planned expansion of conference facilities Upgrade of our rooms Additional rooms Learning center Destination Marketing

11 SUNBIRD INITIATIVE TO ADDRESS THE GAPS
Planned expansion of conference facilities Upgrade of our rooms Additional rooms Learning center Destination Marketing

12 CASE STUDIES:KENYA Sub Saharan Africa Country GDP Contribution Share%
Malawi's accommodation sector can generate the above benefits if as a country, we can learn from success stories of destinations that have emerged from similar back grounds. The table below summarizes some case studies that relate to tourism development in various countries. Sub Saharan Africa Country GDP Contribution Share% Destination Attraction Key Government and Private sector Initiatives Kenya 10.5% of the national GDP 3.5%Direct employment 9.2%Total employment MICE, Safari, Beach, sports and educational Well funded Kenya Tourism board for destination marketing Diversification of Nairobi&Mombasa as a MICE destination Creation of well funded private sector lobby group under Kenya Tourism Federation Creation of development fund under Kenya Tourism Fund for large and small investors to propel tourist facilities 2% Catering Training Levy& Development Opening of Air space for more passenger airlines and charter Creation of Tourism& Regulatory Authority for purposes of standardisation of products , services and compliances Investment in training institutions and service to make hospitality career more attractive.

13 CASE STUDIES: RWANDA Sub Saharan Africa Country
Malawi's accommodation sector can generate the above benefits if as a country, we can learn from success stories of destinations that have emerged from similar back grounds. The table below summarizes some case studies that relate to tourism development in various countries. Sub Saharan Africa Country GDP Contribution Share% Destination Attraction Key Government and Private sector Initiatives Rwanda 8.3% of the national GDP 3% direct employment 6.6% total employment MICE and Safari Gorilla Conservation MICE development Strategy board Kigali Convention Center Creation of Rwanda Development board that ensure there is incentives for investment in Rwanda. 24hours business license policy with fees as low as $43 Focusing on Eco-Tourism Easy access with fastest growing National Airline -RWANDAIR Creation of the Conventional center and international hotel brands such us Marriott, Radisson Blu, Golden Tulip and Park Inn& Serena Well funded and aggressive marketing board voted the most promising tourism marketing brand FDI on tourism is 20% Hotels, chatters are except from import and excise duties Tax exemption on FFE and PPE. Part of EAC Tourist Visa

14 CASE STUDIES: ZAMBIA Sub Saharan Africa Country
GDP Contribution Share% Destination Attraction Key Government and Private sector Initiatives Zambia 6.1% of the national GDP 3.5% Direct employment 4.2%Total employment MICE& Safari and Victoria Falls in Livingstone. The following bodies enjoys the support of the government to propel tourism industry Tourism Development Fund Creation of Tourism Development Credit Fund Zambian National Tourism Board for destination marketing Zambian wildlife Authority for conservation and sustainability of wildlife

15 CONCLUSIONS AND RECOMMENDATIONS
We can propel growth of the sub-sector to contribute towards a diversified economy by focusing on the following: Improve infrastructure in destination Malawi to open up the attractions. Increase budget allocation for destination Marketing. Increase capacity- Accommodation, conference and restaurants and bars. Focus on service delivery and value for money Offer incentives for investment Open up our skies for more airlines and review visa fees to encourage tourism

16 CONCLUSIONS AND RECOMMENDATIONS
Establish or strengthen the following bodies Malawi Tourism Council and increase the level of engagement with the ministry on policies that promote tourism. Establish Malawi Tourism Board mandated to market the destination Create a bodies under the ministry that deals with funding of tourism projects & promotion of tourism activities Increase the tourism levy to address the issues of training and marketing.

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