Friday, May 3, 2019

Tourism contributed ZMK19.4BN (USD1, 846.9 MN) to the Zambian Economy in 2018



By NDUBI MVULA

THE tourism sector contributed a total of ZMK19.4 Billion (USD1, 846.9MN) and 318.9 thousand jobs to the Zambian economy in 2018 and posting a +6.3% Gross Domestic Product (GDP) making it the fastest and bullish economic sector in the country.

International visitors alone spent ZMK8.4 Billion representing 8.3 percent of the total Zambian exports and in terms if spending characteristics the leisure sectors account for a total of 38 percent while business was at 62 percent. Domestic spending on tourism and travel stood at 47 percent while international spending was 53 percent.
                                             
The industry is estimated to create a total of 464.6 thousand jobs in 2019 with an estimated 1.1 million expected international visitors in 2019.This is according to the World Travel and Tourism Council’s (WTTC) annual review of the economic impact and social importance of the sector released this month.

The WTTC is an international none governmental organisation which represents the Travel and Tourism private sector globally with over 170 membership that includes CEOs, Chairmen and Presidents of the world’s leading Travel and Tourism businesses from all across the globe covering all industries.

The organisation works to raise awareness of Travel and Tourism as one of the world’s largest economic sectors, supporting one in 10 jobs (319 Million World Wide and generating 10.4 percent of the world GDPin 2018.

The Council is the global authority on the economic and social contribution of Travel and Tourism. The organisation promotes sustainable growth for the Travel and Tourism sector, working with governments and international institutions to create jobs, to drive exports and to generate prosperity.

Together with Oxford Economics an international consulting firm headquartered in Oxford United Kingdom and prides itself as a global leader in forecasting and quantitative analysis produces annual research that shows Travel and Tourism to be one of the world’s largest sectors.

The WTTC has been producing comprehensive reports quantify, compare and forecast the economic impact of Travel and Tourism on 185 economies around the world for nearly 30 years.

In addition to individual country fact sheets, and fuller country reports, WTTC produces a world report highlighting global trends and 25 further reports that focus on regions, sub-regions and economic and geographic groups.

Image result for image of percy ngwiraAnd when contacted for a comment on this exceptional data on Zambia’s travel and tourism sector Zambia’s renowned tourism expert Dr. Percy Mabvuto Ngwira said the data is food for thought and that it needed to be validated with national data produced by Central Statistical Office (CSO), the Ministry of Tourism and Arts and other relevant institutions. 



                                             
                                                   Dr. Percy Ngwira             

Dr. Ngwira, was quick to point out the fact that tourism is an important sector that is playing a significant role in the economic emancipation of Zambia, towards the achievement of the national Vision 2030 – which aims to transform Zambia into a prosperous middle income nation by the year 2030 and to create a new Zambia which is a strong and dynamic middle-income industrial nation that provides opportunities for improving the well-being of all, embodying values of socio economic justice.

He said Zambia’s tourism sector has been growing arguably so in the past two decades and has the potential to make meaningful contribution to the country’s economic emancipation, particularly the sector’s potential in terms of creating jobs and wealth.

Dr. Ngwira said this would eventually be contributing towards sustainable development and aiding infrastructure development across the country.

“The importance of tourism industry lies in its ability to cut across many sectors of the economy well referred to as ‘multiplier effect’. The conceptual multiplier effect of tourism does not only end at creating opportunities in the tertiary sector; it, however, endorses economic development in other primary and secondary sectors of the economy in a destination,” he said.

He notes that the supposition of tourism’s multiplier effect in its simplest form is how many times the money spent by a tourist circulates through a destination’s economy or how many economic opportunities the sector creates in the destination’s economic developmental pathway.

As noted by the United Nations specialised Agency for tourism ‘The World Tourism Organisation (UNWTO) which is the United Nations agency responsible for the promotion of responsible, sustainable and universally accessible tourism, “the tourism industry has experienced sustained growth and deepening ‎diversification over the decades, to become one of the most accelerated economic sectors in growth in the world.”

He said contemporary tourism is squarely connected to development and involves the growing number ‎of new destinations across the globe adding that the current global development dynamics have turned tourism into a key driver for socio-economic progress.‎

Dr. Ngwira further explains that today’s tourism business volume equals or even surpasses that of oil, ‎food products or automobiles businesses. Tourism has become one of the critical rookie players in ‎international economic and trade affairs and represents at the same time one of the primary income ‎sources for many developing countries.

“Intriguingly, modern tourism growth goes hand in hand with an ‎increasing diversification and competition among destinations.‎ This global advancement of the tourism business in industrialised and developed countries has produced ‎varied economic benefits in many related sectors - from construction to ‎agriculture to telecommunications.

‎Nevertheless, the contribution of tourism to the economic well-being of any destination depends on the quality and the ‎revenues generated directly and indirectly.

As one of the world’s largest economic sectors, travel and tourism creates jobs, drives exports, and generates prosperity across the world.

Given the above positive credentials presented by the tourism sector, it is high time Zambia fully realised, recognised and placed tourism as number one priority in the the country’s quest for economic emancipation in this ever-changing and more complex international business arena.

Inclusive growth and ensuring Zambia’s developmental agenda is based on offering opportunities to many vulnerable communities with sustained quality jobs should be Zambia’s tourism economic development focus.

The tourism sector which already supports one in every ten jobs on the planet is a compelling engine for Zambia’s massive unemployment challenges.

Despite all the positive effects of tourism, it is also important for Zambia to minimise tourism’s negative impacts on the environment and host communities while maximising the benefits it brings regarding jobs, wealth and support for local culture and industry, and protection of the built and natural environment.

Ends.