05 Dec 2024

The Ministry of Environment and Tourism is aware of revenue repatriation in the tourism sector which occurs when a taxpaying entity transfers money earned overseas back to the country where it is based, says Minister Wynter Mmolotsi. 

He informed Parliament that the ministry advocated for all revenue generated from tourism licensed operations to reach Botswana and be reported accurately. 

The move, he said, would help minimise leakages, strengthen local economy through circulation of money, increase local investments and reduce possibilities of tax evasion. 

To remedy the problem of revenue repatriation, the ministry has kick-started the process of reviewing the Tourism Act of 2009 with the intention for the review to be considered by Parliament during the August 2025 sitting. 

“The aim of this review is among others to provide legislative instruments that compel tourists to pay in full in Botswana. By so doing, this will tighten the legislation and enforcement measures to ensure that all revenue earned by tourism activities remains in the country,” Minister Mmolotsi said. 

He said that the ministry would mandate that all payments be made in local currency and thereby preventing cash outflows while maximising 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,” said Minister Mmolotsi. 

The ministry would also finalise the Tourism Leakages Study by January 2025, which aims to identify areas of leakages within the tourism sector as well as mitigation measures. 

Throughout this, Mr Mmolotsi said the ministry would continue to collaborate with stakeholders including the ministry of trade and that of finance in mitigating revenue repatriation in the tourism sector. 

Tati East MP, Mr Tlhabologo Furniture had asked the minister if he was aware of revenue repatriation in the tourism sector and to explain what he intended on doing to remedy the situation. Ends