Monday, September 26, 2011

FROM GREEN GOLD TO CLEAN GOLD.

Can tourism replace tobacco as the country’s main forex earner? For most people, this question is very simple. Tourism can contribute to the country’s economy but it is totally inconceivable to think of tourism as a potential replacement to the falling tobacco industry.


However, in my view, if well managed, the tourism industry in Malawi, can even surpass what tobacco has contributed to the country.

For instance, in its current poorly managed state, the industry is still able to produce around 15 to 20% of the GDP. It is a fact that currently, the country’s tourism potential is greatly under-exploited and that with proper management, the industry should be able to drive the country’s economy. Surveys conducted on tourism show that if well marketed, Malawi as a brand can earn the country up to 70% of the country’s foreign currency requirements. This is much higher than what tobacco is currently contributing to the country’s forex reserves.

Given that Malawi, has vast areas of scenic beauty, a very rich cultural heritage and has richly been peaceful, it is a brand that can be appealing and cost less to develop and market.

While many people consider tourism as business only for hotels, it has to be understood that tourism is a far much broader industry than it appears. For example, a vibrant tourism industry would automatically have a huge impact on the transport industry as the tourist would require transport to be able to move from one place to another-that is where car hire firms and bus companies come in. A vibrant tourism industry would not only benefit the hotels and car hire operators, airlines like Air Malawi and even insurance companies would also benefit from the increased number of tourists visiting the country

A vibrant tourism industry would also mean that the country would have a better consumer power even when the companies cannot export. It is a fact that even the most well to do tourist, cannot bring everything they need to use on their tour from their countries. In fact, the tourists buy most of the basic requirements right within the countries they visit . The fact that more people are buying the goods the companies are producing, will allow the companies to make more profits and employ more people.

Apart from creating formal employment, tourism also creates a lot of informal employment. For those who earn their livelihood by selling curios and exhibiting culture, tourists give them most of the business. A vibrant tourism industry would ensure that these group are able to get sufficient income. In so doing, the industry would be directly contributing to human development.

Given that tourism is an all encompassing industry in which everyone benefits, there is need for the private sector to join hands with the government to ensure that tourist services are up to the mark. There is also need that the country develops a very good marketing strategy that would allow easy access of tourist information. A good marketing strategy should also be able to fully portray Malawi as a rewarding tourist destination.

There is simply so much that the country has to gain from tourism. Perhaps it is time we stopped worrying about the inability of tobacco to generate forex and turn our focus to developing our tourism industry which has a lot of potential but is being grossly under-utilized. If well managed, the country’s tourism industry can be the driving force of our economy. Perhaps the most interesting thing is that the tourism industry is very sustainable and does not require heavy investment (as compared to other GDP earners- for example-Mining) to bear fruit.



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