The Hospitality and Tourism Association of Botswana (HATAB) has warned government against increasing income tax rates, decrying that the strategy could hinder the recovery of the tourism sector. The warning is contained in HATAB’s position paper titled “HATAB 2025/2026 Budget Expectations,” released ahead of the recent budget speech by Finance Minister Ndaba Gaolathe. According to HATAB, the tourism industry is still struggling to rebound from the impact of the Covid-19 pandemic and requires more time to fully recover. “A tax increase would hamper the recovery. We, therefore, expect government to maintain the current tax rate and not raise it,” reads part of the paper.
HATAB emphasized the importance of maintaining a favourable tax environment to support growth and stability within the tourism sector, which is a key contributor to Botswana’s economy. In a statement following Gaolathe’s presentation of the 2025/26 budget, HATAB welcomed “the steps the Minister has laid out to improve governance, namely ramping up procurement efficiencies and eliminating gross wastage and duplication to ensure fiscal stability.” HATAB said the fact that submissions of supplementary budgets will be backed by undertakings of budget cuts in other areas should help maintain spending discipline.
With regard to the ease of doing business, HATAB said it looks forward to reforms of cumbersome business regulations, which stifle innovation and growth. “The fact that a grocery store requires numerous licences which involve multiple agencies reveals the scale of unnecessary bureaucratic red tape,” reads part of the document, adding that “HATAB stands ready to work with the government to root out burdensome regulations to unleash the growth of the tourism sector and the economy as a whole to generate economic growth and jobs.”
HATAB also supports government focus on an export-driven economy because it plays a significant part in powering growth. “Once again, the tourism sector is, in many respects, an export sector that brings in substantial foreign exchange earnings for the country,” said HATAB.
Given that resources are limited, HATAB says it looks forward to the government’s undertaking, as per the Budget Speech, to enact the Public Private Partnership (PPP) framework to attract much-needed investment, skills and technology. It says like other enterprises in the private sector, the tourism industry depends on a responsive work and residence permit system to facilitate skill recruitment. “HATAB looks forward to the digitalisation of the work and resident regime to boost efficiencies and international competitiveness. In addition, the visa system should also be enhanced to reduce turnaround times and facilitate international visitors,” says HATAB.
On air access promotion, HATAB says the tourism sector relies on a well-developed aviation route network which connects the country to the rest of the world. It is on this basis that HATAB pledges its support to the Civil Aviation Authority of Botswana (CAAB)-led project to attract long haul carriers to Botswana, which the minister acknowledged in his address.