Gaborone: The Botswana Confederation of Commerce Industry and Manpower has welcomed the reservation of some tourism enterprises for citizens and companies that are wholly owned by Batswana. The government announced in the December 30, 2011 Government Gazette, that guest houses (except corporate guest houses), mobile safaris, motorboats, tourist transfers, camp and caravan sites and mekoro are now reserved or Batswana or companies that are wholly owned by citizens of Botswana.
“This is a welcome development given that such a dispensation will provide for Batswana being included into the backward and forward linkages of the tourism value chain in Botswana. Currently, the participation of Botswana generally in the tourism industry, especially at ownership and management level is worrisome.
“The Tourism Regulations 2011 are in line with various statutes that strive to foster economic empowerment, entrepreneur development, and diversification drive and stimulus tools for economic growth and development of Batswana.
Reservations are the norm in any legislative set-up in developing economies. A good example is the current revised Trade Act where some enterprises have been reserved for Botswana citizens,” said BOCCIM Chief Executive Officer (CEO) Maria Machailo-Ellis.
The tourist enterprises that have been reserved for Batswana will enable citizens to undertake larger business ventures in future, she said. These enterprises do not require huge capital investment; as such the regulations are within the spirit of citizen economic empowerment.
But she warned: “Given that there are currently pockets of skills shortages in Batswana entrepreneurs, the regulations should have accommodated joint ventures between locals and foreigners with a requirement that companies wishing to enter into the businesses reserved for locals should have majority citizen ownership. We hope the current businesses owned by foreign investors will not be affected by the regulations.”
BOCCIM is interested to find out how the regulations will work and how existing and future businesses will be dealt with, she added.
“For example, will there be a phased approach; and of what fashion. We do however feel that foreign investors shouldn’t have too many investment limitations. Batswana need to be encouraged to take part in tourism and they should by all means try and gain the necessary skills/ qualifications to facilitate the growth of their business,” she concluded.
