‘Two-tier pricing, key to domestic tourism growth’

The importance of promoting domestic tourism comes as no surprise because the backbone of any thriving tourism industry hinges on local spending.

This is why players in the tourism industry have called for a two-tier pricing in tourism establishments which could cater for domestic as well as foreign tourists to ensure that the industry thrives.

There has been an outcry that domestic tourism establishment sprice their services in dollars, a development that stifles local tourists from patronising tourism attraction places.

Experts say tourism is an emerging sector with potential to contribute towards the country’s economic development and is one key priority economic sector that contributes about five percent to gross domestic product (GDP), the broadest measure of economic activity.

Travel Agents Association of Malawi (Taam) president Ken Banda in an interview on Tuesday said most locals find it hard to visit tourism establishments in the country because the charges are high.

He said: “Imagine a hotel charging $250 (about K182 000) for a room, can locals pay this kind of money. Government must come in to ensure that charges are reasonable for the locals taking into account the fact that disposable income is difficult to get.”

On his part, Malawi Gaming Board chairperson Billy Banda said with two sets of pricing, the country’s tourism sector can grow as lakeshore resorts, games and national parks will be affordable for locals as well.

Reacting to the suggestions, director of tourism Isaac Katopola and principal secretary in the Ministry of Industry, Trade and Tourism Elsie Tembo said they are currently holding consultative meetings to seek input to be incorporated in the new Tourism Policy.

“This suggestion has come up in several forums and we will see how it can be incorporated into the policy,” said Katopola, stressing that it is a good suggestion.

On the other hand, Tembo said they are soliciting views to ensure that the tourism industry flourishes.

“Companies, government ministries and departments must also put in measures to ensure that challenges besetting the tourism sector are ironed out,” she said.

Two tier pricing for tourism establishments is not a new concept as it is also happening in countries such as Kenya, Zambia and Tanzania.

In 2015, tourism directly contributed K105 billion, which is 3.4 percent of GDP and is forecast to rise by 2.9 percent to K108 billion in 2016, according to the Malawi Government Annual Economic Report 2016.

In the same year, travel and tourism directly supported 205 000 jobs, representing 2.8 percent of total employment, according to the report.