AN UPDATE ON DEVELOPMENTS IN THE TOURISM SECTOR

1. AN UPDATE ON DEVELOPMENTS IN THE TOURISM SECTOR Isaac D. Katopola Director of Tourism MTC Annual General Meeting on 2nd June 2017 Sunbird Capital, Lilongwe

2. Presentation Outline • Introduction • 2016/17 Highlights • Plans for 2017/18 • Conclusion

3. Introduction • Tourism is one the fastest growing industries in the world and it is one of the few industries that transcends many economic sectors • The complex nature of the sector, which is an amalgamation of sub sectors has prompted researchers to call it “an industry of industries”. • In 2015 the Travel and Tourism contributed US$7.2 trillion (2.8%) to global economy • International arrivals in Malawi in 2015 were 804,000 • In 2016 the Malawi tourism sector contributed MK289 billion to the economy which was 7.2% of GDP (WTTC)

4. 2016/17 HIGHLIGHTS 1. MARKETING INITIATIVES • Coordinated production of the 2017/18 Malawi Tourism Directory and update & the 2018 edition generic Malawi tourist brochure • Introduced “Takulandirani” tourism magazine • Engagement of Dutch and Chinese market PR and Marketing Reps • Finalising Production of a DSTV Malawi tourism promotional video campaign which is expected to start soon • Finalised the Tourism Marketing Strategy & Tourism Domestic Marketing Strategy which are now ready for launch. The following are highlights of the Tourism Marketing Strategy:

5. Tourism Products and Markets KEY TOURISM PRODUCT LINES Malawi’s Five Key Tourism Product Lines

6. Tourism Products and Markets MALAWI’S KEY MARKETS KEY INTERNATIONAL SOURCE MARKETS United Kingdom The Netherlands Germany USA China Future markets: Australia, Russia KEY REGIONAL SOURCE MARKETS • South Africa • Zimbabwe • Mozambique • Zambia • Tanzania • Future markets: Kenya, Ethiopia (direct flights)

7. Tourism Brand Essence MALAWI’S TOURISM BRAND ESSENCE Malawi Destination Branding: Rich in contrast – diverse lake experience, variety of landscapes, habitats, climates & cultural assets Compact in size – short distances between attractions, comparatively not overcrowded Big in hospitality – Peaceful environment, neighbourly social interaction, tolerant and authentic relationship with visitors and other cultures Most operators feel Malawi should maintain the “Warm Heart of Africa” tourism brand but should review logo from time to time

8. 2016/17 HIGHLIGHTS 1. MARKETING INITIATIVES …..Continued • Participation at the WTM London, Vakantiesbuers in the Netherlands, ITB Berlin, WTM Africa and Indaba fairs • Successfully upgraded of the official Malawi Tourism website following a Digital Marketing Workshop in September 2016 • Production of stand alone tourism banners that will be sent to all Malawi missions abroad • Partnership with Mibawa Studios on domestic tourism promotional TV series now airing on MBCTV &Mibawa TV • Finalised arrangements with Sawubona inflight magazine whose crew will be in the country in the next two week for a Malawi advertorial feature for the November 2017 issue • Advertising in Malawian “Tiyende” and Ethiopian “Selamta” inflight magazines

9. 2. MEMORUNDUM OF UNDERSTANDING IN THE FIELD OF TOURISM UPDATES 2016/17 HIGHLIGHTS (continued) • Malawi-South Africa Tourism and Malawi-Zambia MOU finalised and awaiting signing in Malawi • Malawi-Tanzania MOU submitted to Ministry of Justice for finalisation

10. 2016/17 HIGHLIGHTS 3. QUALITY ASSURANCE • Inspected 1,441 for licencing, 996 licenced, re-inspected 410 & 25 closed • Graded 21 properties with the highest achieving a four-star rating 4. PLANNING & DEVELOPMENT • On-going work on mapping & zoning the country for Tourism development • Produced Tourism Statistics Report for 2015 and working to improve timeliness of statistics production • Public beaches – identified sites in Salima & Nkhatabay, work in progress to secure the land • Access roads – to resume work in Salima anytime • Hosted 1st National Tourism Conference. Issues raised during the Conference for follow up include the following:

11. 2016/17 HIGHLIGHTS 1ST NATIONAL TOURISM KEY ISSUES FOR FOLLOW UP • Creation of a Tourism Authority as part of the ongoing public sector reforms and National Tourism Policy • Improved corroboration amongst Government Departments and development of policies that promote tourism • Having a strong private sector that speaks with one Voice • Introduction of a 1% Tourism Training levy • Work towards reducing leakages from the tourism sector • Production of timely and quality tourist statistics • Creation of a Malawi as a competitive tourist destination

12. Plans 2017/18 • Engagement of Marketing Reps for the German and USA markets. Approvals already obtained from ODDP • Planning to have roadshows in South Africa, the USA and China • Hosting the Malawi International Tourism Expo – “Takulandirani” in from 30th August to 1st September 2017 • Implementation of Domestic Tourism Marketing Strategy • FinaliseSalima bitumen standard access road project • Secure public beach land in Salima and Nkhatabay • Get the National Tourism Policy approved by Cabinet • Inspect 1,500 units for licencing • Grade 26 accommodation units

13. major challenges • Underdeveloped tourism infrastructure to support tourism development • Need for more corroboration and appreciation of tourism by key Stakeholders such as Home Affairs, Civil Aviation, Lands, among others on Visa, Airline issues, land issues • Uncompetitive regional and international air fares into Malawi • Lack of timely Tourism statistics to enhance decision making • Fragmented private sector

14. conclusion • Need to have a strong MTC which is supported by all player in the sector • Ministry to continue corroborating with private sector in implementations of its plans

15. THANK YOU FOR YOUR ATTENTION Ministry of Industry Trade and Tourism