Title: NAMIBIA INTERNATIONAL INVESTORS CONFERENCE THE ECONOMIC IMPACT OF THE TOURISM SECTOR ON THE NAMIBIAN
1NAMIBIA INTERNATIONAL INVESTORS CONFERENCETHE
ECONOMIC IMPACT OF THE TOURISM SECTOR ON THE
NAMIBIAN ECONOMY THE TOURISM SATELLITE
ACCOUNTPresented by Dr. K. Shangula31st
November 2007Windhoek, Namibia
2PURPOSE OF PRESENTATION
- BACKGROUND ON TOURISM SECTOR
- ITS IMPACT ON NATIONAL ECONOMY
- ? Foreign Exchange Earnings
- ? Employment Creation and Poverty Alleviation
- ? Its Contribution to National Income
- ? Its contribution to Governments Revenues
- CHALLENGES
- ACHIEVEMENTS CBNRM focus
- CONCLUSION
2
3BACKGROUND ON TOURISM SECTOR
- Catalyst for national economic development
- Since independence its share contribution to
- national economy has been increasing
- Tourist arrivals increased from 254 978 in 1993
to 833 350 in 2006 - Downturn in number of arrivals in years 2001-2003
- (terrorism, military conflicts, world economic
recession) - Tourism arrivals normalize in 2004
- Namibia primarily a nature-based tourism
destination
3
4Economic Impact of Tourism
- Multiplier impact makes tourism viable and
valuable tool for socio-economic development - Impact of tourism segmented into 4 main
components - ? Foreign Exchange Earnings
- ? Employment Creation and Poverty Alleviation
- ? Its Contribution to National Income
- ? Its contribution to Governments Revenues
4
5Economic Impact of Tourism Foreign Exchange
Earnings (FEE)
- For 2006 gross receipts from international
tourist arrivals is N4.2 billion - FEE vital for sustaining development
- Tourism generates much-needed foreign exchange
- This has contributed to the diversification of
the national economies
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6Foreign Exchange Earnings cont
- Three important variables for the measurement of
receipts from tourist - ?Tourist arrivals business travelers 102 489
(12.3) ), visiting friends and relatives 309 632
(37.2) and holiday traveler 405 904 (48.7) - ? Length of stay ALS is 19 days
- ? Per diem important to provide a value for
money
6
7Foreign Exchange Earnings
7
8Employment Creation
- positive growth in the number of accommodation
establishments - The growth of small and medium enterprise,
particularly, in the rural areas, is contributing
towards employment creation - In 2006 the broader tourism economy was expected
to create 71.800 (direct and indirect)
8
9Employment Creation
- Of these, 18. 800 jobs will come from the tourism
industry, which represent 4.7 of the countrys
workforce. - It is forecasted that economic growth will result
in 4.2 annual increase in jobs between
2007-2016.
9
10Tourisms Contribution to National Income
- Tourism Satellite Account (TSA) for 2006 was
N1.5 billion of the gross domestic product,
which constitutes about 3.7 of total GDP. - Because of its multiplier effect TSA
contribution amount to N6.7 billion. - N1.3 billion was the estimated capital
investment which constitutes 12.3 of total
investment.
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11Tourisms contribution to Government Revenue
2005/2006
- Park entrance fees 26 971 695.33
- Private telephone calls 300.00
- Film fees 70 900.00
- Unclaimed cheques 257 769.87
- Miscellaneous 239 449.50
- Departmental fines
17 049.10 - Tourists concessions
1 859 522.11 - Applications fees for gambling licences
43 200.00 - Wildlife registration and licences
176 800.00 - Wildlife utilization permits
215 245.00 - Aeronautical Taxes
1 000 000.00 - TOTAL
120 851 930.91
11
12CHALLENGES
- Continuing growth of source markets, and
diversification - Competition
- Destination management
- Offer value for money
- Growing demand for responsible tourism
- Demand for accurate and timely data for TSA
- Challenge of management and leadership (lack of
skills and expertise) - Lack of tourism marketing (at community level),
promotion and operations skills
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13Achievements CBNRM focus
- In 2006 CBNRM generated more than N26 million.
- Conservancies earned more than N19 million
- ( approx. 73 of total CBNRM income).
- Joint Venture Tourism N9 830 198 (51.6).
- Trophy hunting N6 075 868 (31.9).
- Small tourism enterprises approx N7 million.
- Cash income to conservancies increased from N592
467 in 1998 to N14 506 221 in 2006.
13
14CONCLUSION
- Tourism industry is growing fast in Namibia.
- GOVT has made substantial direct financial
investment in the tourism industry. - Concerted efforts needed from all stakeholders to
spread benefits from tourism
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15As investor, we invite you
- To invest in trans-frontier conservation areas
- To invest in conservancies.
- To enter in Joint Ventures with Conservancies
- To enter in Public-Private Partnership with
Namibia Wildlife Resorts and Local Governments.
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16As visitors we invite you
- To visit natural heritage of land- Etosha,
Sossusvlei, Fish River Canyon.
- To visit rock art of earlier peoples.
- To see remains of the German colonial past.
- To enjoy the warms of Namibians and their
hospitality.
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17I THANK YOU
17