Crisis looms for Botswana tourism industry
Delays in release and renewal of Tourism Concession leases by both the Ministries of Lands and Environment and Tourism is causing turmoil in the country’s lucrative multibillion Pula spinning tourism industry. In most cases the leases last for 15 years and currently a substantial number of operators are reported to be operating without valid leases since they expired some years back.
Reports reaching Botswana Guardian indicate that behind the scenes, meetings are going on between the two responsible ministries with the last expected to have taken place this week in view of solving the challenge that is likely to compromise the security of tenure and investment.
Operators are not certain of what is going to happen because there is no answer in sight in relation to when the leases are expected to come out. This is expected to affect the industry negatively.
In fact, a crisis looms, considering the fact that the Civil Aviation Authority Botswana (CAAB) also depends on players having valid land leases to issue licenses for their landing strips where CAAB land strips are available.
'Regulation CAA Certification and Licensing of Aerodromes 2022 is very clear- CAAB can only issue that permit if you have a lease.'
Further, operators' ability to renovate their investments and carry out maintenance is largely affected because of the uncertainty of the future.
“This is hindering the investor’s ability to do business and to invest in our properties, as we are waiting for the final decision,” one of the operators said on condition of not being named. The matter was recently brought to
Parliament by Lobatse MP, Dr. Thapelo Matsheka who asked the Minister of Environment and Tourism, Philda Kereng to inform the House on the status of tourism concession leases since they have been outstanding for years.
Kereng said issues around the Tourism Concession leases have not been conclusively dealt with. 'This has indeed taken longer than anticipated, but, it is our commitment to close the matter in due course as and when the tenure of individual lapses”.
Kereng said the delay has been caused by the need to do due diligence in the review of previously issued leases. Government also instituted a task force to among others, look into issues of ownership of concession areas, compliance and security related issues.
This process culminated in recommendations which were to be implemented in three phases beginning January 2022. These entailed prioritisation of issues to be attended to regarding concessions with pending leases, concession with leases that were due for renewal, and vacant concessions that were to be advertised.
Kereng said the Ministry is aware of “the implications of the delays experienced on tourism development and sustainability especially on the investor confidence for both local and foreign companies and the impact on the contribution to the GDP”.
'My Ministry and the Ministry of Lands and Water Affairs are working in collaboration to expedite the implementation of outstanding land matters affecting the different concessions with a view to processing them accordingly”.
She promised the process will include engagements with affected lessees to facilitate resolution of all compliance issues and ultimately issues of the requisite leases and renewals.
These processes commenced in November 2022 and it is expected that things will have normalised by the first quarter of 2023/24 financial year.