Currently, much of the billions of pula flowing in the tourism sector are in the hands of foreign-owned companies, meaning a lot of it is repatriated out of the country. The sector contributes billions of pula to the overall economy. The Minister of Environment and Tourism, Wynter Mmolotsi, told Parliament this week that his ministry is aware of revenue repatriation from the tourism sector. He added this occurs when taxpaying entities transfer money earned overseas back to the country where they are based. “My Ministry advocates that all revenue generated from tourism licensed operations should reach Botswana and be reported accurately in Botswana for the following reasons; to minimise leakages, strengthen the local economy through the circulation of money in the local economy, increase local investments, reduce the possibility of tax evasion,” Mmolotsi said. To remedy this, he disclosed that his ministry has kick-started the process of reviewing the Tourism Act of 2009 with the intention for this to be considered by Parliament during the August 2025 sitting.
He added that the aim of this review is among others to provide a legislative instrument that compels tourists to pay in full in Botswana. Mmolotsi was responding to a question from Tati East Member of Parliament (MP), Tapologo Furniture. Furniture had asked the minister whether he was aware that revenue repatriation from the tourism sector; and to specifically explain what he intends to do to remedy the situation. In response Mmolotsi said government expects that mandating all payments to be made in local currency will prevent cash outflows while maximising the economic benefits of tourism for the local population. “In addition, stiffer fines for non-compliance and heightened monitoring of financial activities will be enforced to dissuade any attempts to circumvent the new requirements.
