NAMIBIA INTERNATIONAL INVESTORS CONFERENCE THE ECONOMIC IMPACT OF THE TOURISM SECTOR ON THE NAMIBIAN ECONOMY: THE TOURISM SATELLITE ACCOUNT Presented by Dr. K. Shangula 31st November 2007 Windhoek, Namibia

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NAMIBIA INTERNATIONAL INVESTORS CONFERENCETHE
ECONOMIC IMPACT OF THE TOURISM SECTOR ON THE
NAMIBIAN ECONOMY THE TOURISM SATELLITE
ACCOUNTPresented by Dr. K. Shangula31st
November 2007Windhoek, Namibia
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PURPOSE 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

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BACKGROUND 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

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Economic 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

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Economic 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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Foreign 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

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Foreign Exchange Earnings
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Employment 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)

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Employment 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.

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Tourisms 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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Tourisms 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

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CHALLENGES

• 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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Achievements 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.

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CONCLUSION

• 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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As 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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As visitors we invite you

• To visit natural heritage of land- Etosha,
  Sossusvlei, Fish River Canyon.

• To visit rock art of earlier peoples.

• To see wildlife.

• To see remains of the German colonial past.

• To enjoy the warms of Namibians and their
  hospitality.

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I THANK YOU
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