BOTSWANA STRENGTHENING TOURISM STATISTICS AND FORMULATION OF AN EXPERIMENTAL TSA /2006

Transcription

1 BOTSWANA STRENGTHENING TOURISM STATISTICS AND FORMULATION OF AN EXPERIMENTAL TSA /2006 October 2007

2 0 TABLE OF CONTENTS ABBREVIATIONS AND ACRONYMS... 3 ACKNOWLEDGEMENTS... 4 EXECUTIVE SUMMARY INTRODUCTION General Background for Botswana General Background on Tourism Satellite Accounts Introduction to the TSA Framework TSA Outputs TOURISM CONSUMPTION IN BOTSWANA General Inbound International Tourists Domestic Tourists Resident Outbound Tourists Tables 2 to 4 in the TSA TOURISM SUPPLY IN BOTSWANA General Tourism Characteristic Industries Production Accounts ESTIMATION OF TOURISM VALUE ADDED Reconciliation of Supply and Demand Measures of Tourism in Botswana EMPLOYMENT AND NON-MONETARY INDICATORS Tourism Employment Non-Monetary Indicators CONCLUSIONS Contribution to the Economy Leakages and Linkages Conclusions on the TSA Process The Way Forward ANNEX 1: TERMS OF REFERENCE ANNEX 2: TSA DEFINITIONS ANNEX 3: VISTOR SURVEYS ANNEX 4: SAME-DAY VISITORS INTERNATIONAL INBOUND ANNEX 5: TOURISM CHARACTERISTIC PRODUCTS AND ACTIVITIES ANNEX 6: BASIC PRICES AND PURCHASERS PRICES ANNEX 7: SUPPLY AND USES OF GOODS AND SERVICES ANNEX 8: DEFINITIONS IN TOURISM ANNEX 9: DETAILING THE DEFINITIONS ANNEX 10: TRAVEL CREDIT & DEBIT ACCOUNT

3 ABBREVIATIONS AND ACRONYMS BOB Bank of Botswana COICOP Classification of Individual Consumption by Purpose CSO Central Statistical Office DOT Department of Tourism GDP Gross Domestic Product GFCF Gross Fixed Capital Formation HATAB Hospitality and Tourism Association of Botswana ISIC International Standard Industrial Classification of all Economic Activities NPISH Non Profit Institutions serving Households OECD Organisation for Economic Cooperation and Development RSU Research and Statistics Unit of the Department of Tourism SNA 1993 System of National Accounts 1993 TGDP Tourism Gross Domestic Product TOR Terms of Reference TVA Tourism Value Added UB University of Botswana UNSC United Nations Statistical Commission UNDP United Nations Development Programme UNWTO United Nations World Tourism Organization WTTC World Travel and Tourism Council 3

4 ACKNOWLEDGEMENTS The project team would like to express its sincere thanks and appreciation to the following for their valuable collaboration, guidance and support: Ministry of Environment, Wildlife and Tourism: H.E. Mr. Onkokame Kitso Mokaila, Honourable Minister Dr. Lucas P. Gakale, Permanent Secretary Mr. Edmont Bagaketse Moabi, Deputy Permanent Secretary Department of Tourism, Ministry of Environment, Wildlife and Tourism: Ms. Kelebaone G. Maselesele, Director of Tourism A special word of thanks and praise should be accorded to Mrs. Temalo M. Lesetlhe, Director of Research and Statistics Unit of the Department of Tourism, and her team, for all their hard work and assistance which culminated in this first TSA for Botswana. United Nations Development Programme: Ms. Viola Morgan, Resident Representative Mr. Sennye Obuseng, National Economist World Tourism Organization (UNWTO): Mr. Francesco Frangialli, Secretary-General Dr. Harsh Varma, Director of Development Assistance Ms Vanessa Satur, Project Coordinator, Department of Development Assistance The project was undertaken by the following consultants: Mr. Kevin Millington Team Leader Mr. David McEwen Statistics Expert Ms. Marion Libreros TSA Expert Mr. Joe Heym Database Expert 4

5 Ngoma Causeway Photo 1: Cooperation between the Department of Immigration and the Research and Statistics Unit of the Department of Tourism at Pioneer Gate an illustration of the countrywide cooperation that took place in the UNDP/ UNWTO project. Photo 2: Interviewer Training at the Research and Statistics Unit of the Department of Tourism in Gaborone an illustration of the substantial effort that has to be put into securing primary statistics. Trying to develop capacity to collect, compile and analyse primary statistics has been a focus of the UNDP/ UNWTO project. 5

6 EXECUTIVE SUMMARY 1. Introduction In 2004, a UNWTO executed project Strengthening Tourism Statistics in Botswana commenced. Its ultimate aim was to develop the first Tourism Satellite Account (TSA) for Botswana. However the TSA was not the only goal of this project. Over its duration the following significant milestones have been achieved: The process for measuring monthly accommodation statistics has been improved and upgraded. Data is now analysed and published within two months of the period for which it is collected. The annual visitor survey that is used to measure tourism expenditure has been improved to provide more useful information on the economic impact of tourism in Botswana. The national tourism statistics database has been revised to ensure it can process these statistics efficiently, and provide reports that are useful for all the relevant stakeholders. At the same time training has been provided in methods for extracting, processing and presenting tourism statistics. A five-year statistics bulletin for the period was published. However, all of these procedures have also been implemented with the ultimate goal of developing Botswana s first TSA, following the principles set out in the UNWTO s System of Tourism Statistics (STS). 2. Recommended Methodological Framework (RMF) for the Experimental TSA With regard to this Experimental TSA, every attempt has been made to follow the concepts set out in the TSA: RMF published in 2001 by UNWTO et alia. It should be emphasised that the UNWTO s TSA: RMF focuses upon a statistical process involving the systematic collection and compilation of primary statistics, including sample surveys. It does not focus on economic modelling aimed at using econometric equations for developing estimates of tourism statistics. The benefits of using a UNWTO statistical process are that it involves a large number of institutions in Botswana, as well as individual professionals within these institutions, cooperating and working together to attempt to build up a statistical database that will help with key economic decision-making for this important industry within Botswana. It is reasonable to say that the cooperation has been excellent, both with the Reference Group (DOT, Bank of Botswana, Central Statistics Office, and University of Botswana) and with others, e.g. HATAB (Hotel and Tourism Association of Botswana). In this cooperative environment the UNWTO/UNDP project has attempted to build statistical capacity within the DOT with direct hands-on training. The intention, apart from trying to compile accurate, coherent and transparent statistics, is to set up the TSA as an ongoing work in progress that can be amended, modified, and enhanced to incorporate more economic information on tourism. Also, being a statistical process, it can be implemented by DOT and key collaborating institutes in Botswana directly, without the need for outside expertise, as would probably be necessary in an economic modelling process such as those used by other agencies. 3. Key Statistical Inputs to the TSA The range of statistics that have been used as inputs into the TSA process has been extensive. The DOT has provided the Tourist Arrival Statistics, the Tourism Accommodation Statistics, and the Sample Surveys of Visitors, Tour Operators and Tourism Suppliers. The CSO has provided a very wide range of material from the National Accounts, the Household Income and Expenditure Surveys, the Labour Statistics, the Transport Statistics, the Foreign Trade Statistics, the Informal Sector Survey and the Social Accounting Matrices and others. The BOB has provided statistics on the travel and transport accounts and the Balance of Payments. Further data came from the 6

7 Botswana Unified Revenue Service, HATAB, Government Budget and private sector organisations, and indeed some econometric information from outside Botswana. Despite this extensive range of statistics it has been necessary to work with anecdotal information as well, especially in relation to private sector activities. Where improvements could be made in forthcoming years are with respect to: - More statistical information on private sector activities, in particular the numbers of tourists coming on package tours to Botswana would be helpful. Breakdowns on how part of the package tour price is spent in Botswana would also improve the TSA process. It is recommended that HATAB along with DOT be a key player in obtaining such information. Information on domestic tourism, not only by households (to be picked up next year by DOT in cooperation with CSO in a Household Survey) but also domestic tourism by Government staff and by businesses is needed. It is recommended that the DOT add an accommodation sample survey to their accommodation statistics process. It is recommended that the updating of the Social Accounting Matrix by the CSO be built into their programme. It is a major exercise but one that would be highly valuable for the TSA process, and one that could be achieved following the important sample surveys that are being carried out by CSO currently and in the next couple of years. 4. TSA Outputs Following meetings with the Reference Group, it was decided to attempt an Experimental TSA for the Year 2005/2006 in order to try and make it as up-to-date as possible, taking into the account the good availability of National Accounting Data from the CSO. It is worth remarking that few countries, even statistically advanced countries, have attempted to bring the UNWTO TSA to so recent a date. The UNWTO TSA process is not in itself an economic impact/policy study. Its focus is on providing statistical input for economic decision-making with respect to the tourism sector. However, a few key observations can be made: - Tourism s Contribution to GDP in Botswana The TSA process indicates that TVA (Tourism Value Added) in 2005/2006 is around P1.9 billion. Comparisons with the Gross Value Added in the National Accounts for 2005/2006 of P54.8 billion (provisional figures) show that the Direct Contribution of the Tourist Expenditure (consumption) is around 3.4% to Botswana s GDP. It should be emphasised that this is the direct contribution and there are further indirect contributions that can arise from value added by suppliers to the tourism industry, who have no direct connection with the tourist, himself/herself. Indirect contribution can vary substantially, and can lie usually anywhere between 25% and 75% of the direct contribution. If this were to apply in Botswana, it might be that the direct + indirect contribution would lie between 4.2% and 6.0%. These contributions relate to the impact of the expenditure/consumption. Tourism Employment in Botswana CSO have indicated that the level of employment in the Hotels and Restaurants exceeds 11,000 in Not all such employment is associated with tourism expenditure, but then expenditure by tourists outside of Hotels and Restaurants will broadly offset the non-tourist expenditure. Employment at more than 11,000 is highly significant exceeding employment in Mining and Quarrying, in Transport and Communications, and in Finance. 7

8 1. INTRODUCTION 1.1 General Background for Botswana Tourism is seen as an important sector in the economy of Botswana providing jobs, local incomes and making contributions to Government revenues. In recognition of this importance though lacking any objective measurement of it, the Government of Botswana decided to strengthen the process of collecting tourism statistics, and embarked upon measures to analyse the economic contribution of tourism with a view to underpinning a series of forthcoming strategies and policies for the development of tourism in the country. Central to this initiative has been the Research and Statistics Unit (RSU) of the Department of Tourism (DOT). The RSU, as part of a UNDP/UNWTO project, has been strengthening the process of all the tourism statistics in Botswana including arrival statistics, accommodation statistics, statistics on visitors to the National Parks, sample surveys of visitors, and other surveys concerned with trying to improve the Government s understanding of the tourism industry. As a follow-on to the improvements in the tourism statistical processes, the DOT has taken the step of putting together this Experimental Tourism Satellite Account, following the methodology recommended by the UNWTO and endorsed by the UN Statistical Commission, the Organisation for Economic Cooperation and Development (OECD) and the European Commission through Eurostat. The DOT has been assisted in this endeavour by a Reference Group within Botswana that has included the Central Statistics Office (CSO), the Bank of Botswana (BOB), and the University of Botswana (UOB). Many other organisations within Botswana also contributed to the work, including the private sector. The efforts of so many organisations have been much appreciated by the DOT. 1.2 General Background on Tourism Satellite Accounts Virtually all countries throughout the world have National Accounts in which the main economic aggregates have been measured/ estimated, such as, for example, Gross Domestic Product (GDP), value-added by different industries, intermediate consumption by different industries etc. However, such aggregation has not been possible for tourism within the National Accounts, although it is often done for hotels and restaurants, a key part of the tourism industries, because tourism is primarily a demand side phenomenon, that is determined by the expenditure associated to those identified as visitors whereas Value Added and GDP are measurements associated with productive activities. The concept of Tourism Satellite Accounts (TSA) was put forward to remedy this lack of economic data on tourism. In a TSA, demand/ consumption of tourism, a standard measurement of visitor expenditure, is identified, associated to the industries that serve them, and the value-added arising from that expenditure for the different industries that serve visitors can then be compiled and added together to establish tourism value added. The methodology for the TSA is set out in the UNWTO Manual known as TSA: RMF 2001 (RMF = Recommended Methodological Framework). Two key tenets of this methodology are, firstly, that a uniform methodology allows valid comparisons, enabling the tourism value-added to be compared with the value-added in other industries and also allowing comparisons with other countries to be made on a like-for-like basis. Secondly, a key tenet is that the information on demand by visitors (that can encompass both tourism products and non tourism products) is reconciled with the information on supply of these goods and services in the economy. In the course of this exercise the DOT has attempted to follow the general guidelines set out in the TSA: RMF, a Manual prepared under the auspices of the UNWTO which has given a forwardlooking guide for countries to follow in these endeavours. 8

9 1.3 Introduction to the TSA Framework The conceptual framework of the TSA is set out in the TSA: RMF published by the UNWTO, OECD and the European Commission in Its key aspects are reiterated here and can be seen in detail in Chapter Four in the TSA: RMF document. The methodological framework for the elaboration of the TSA is made up of a set of definitions and classifications integrated into tables and organised in a logical consistent way. It allows the whole magnitude of tourism in both its aspects of demand and supply to be seen. The Ten Tables which comprise the satellite account are derived from or related to the tables of the 1993 SNA that concern the supply and use of goods and services. They are at the centre of international comparisons of the economic importance of tourism between economies. The minimal set of tables required to speak of a system of satellite accounts comprises Tables 1 to 6 and Table 10. Accounts that concentrate solely on visitor consumption or solely on the supply by tourism industries and other industries do not qualify as tourism satellite accounts. At a minimum the TSA must include a detailed presentation of supply and consumption, in terms of goods and services consumed by visitors and the activities that produce them, as well as an overall confrontation of their corresponding aggregates, which is at the core of the TSA system. Figure 1.1 The Ten Tables of the TSA Table 1 Inbound Table 2 Domestic Table 3 Outbound Table 5 Production Table 7 Employment Table 8 Capital Table 9 Collective Table 10 Indicators Table 4 Internal Table 6 Domestic Supply & Consumption 1.4 TSA Outputs TSA: RMF suggests the following as a set of relevant indicators of the size of tourism in the economy: Internal tourism consumption (in cash and in kind); Value added of the tourism industries; Tourism value added; and Tourism GDP. Tourism value added and Tourism GDP provide measures of the economic importance of tourism in the same sense as the GDP of any productive activity does. They are indicators emanating from a reconciliation of tourism consumption and supply. Their values will depend in particular on the completeness of the scope of measurement of visitor consumption that a country adopts, and on the country s ability to assign visitor consumption to the industries that serve the visitors. 9

10 2. TOURISM CONSUMPTION IN BOTSWANA 2.1 General The TSA: RMF makes it very clear as to how visitors should be viewed. The visitor is a particular type of individual consumption unit, who is distinguished from other individuals by the fact that he/she is outside his/her usual environment and travels or visits a place for a purpose other than the exercise of an activity remunerated from within the place visited. Otherwise he/she behaves like an ordinary consumer, so that the characteristics of consumption activity described in the SNA 1993 are also relevant for visitors. The distinction between a visitor and a non-visitor can be almost impossible to discern from the viewpoint of a supplier, and this is one of the key difficulties in compiling primary statistics for the TSA, that need to be based on information provided by the travellers themselves. Box 2.1: Concept of Usual Environment - UNWTO The concept of usual environment, and therefore tourism, has two dimensions. The first is frequency. Places which are frequently (on a routine basis) visited by a person are part of the usual environment of that person, even though these places may be located at a considerable distance from the place of residence. The second dimension is distance. Places located close to the place of residence are also part of the usual environment even though the actual spots are rarely visited. Therefore the usual environment consists of a certain area around the place of residence plus all places visited rather frequently. there is no single operational definition of usual environment that can be applied all over the world. countries should look for a practical definition that excludes virtually all routine travel of their residents and travel to places very close to the usual place of residence from tourism. Internal tourism consumption, that is the consumption activity of visitors within a country, includes the consumption of the following individuals: Inbound international visitors, staying overnight (and thus being international tourists) travelling for the purposes of holiday, business, VFR and a number of other tourism purposes, but particularly excluding visitors being remunerated from within the country visited; Inbound international visitors, not staying overnight, and thus being same-day visitors, but nonetheless travelling outside their usual environment. However, individuals coming into the country in order to make purchases of goods to sell back in their country of origin should be excluded; Domestic visitors staying overnight - travelling for the purposes of holiday, business, VFR and a number of other tourism purposes. Visiting one s second home is seen as a tourism purpose; Domestic visitors, not staying overnight, and thus being same-day visitors, but nonetheless travelling outside their usual environment; and Residents on an outbound trip, who spend something within their country of reference whilst being on an outbound trip for example, pre-trip expenditure of things to bring along or use on the trip, transportation using a resident carrier, using the services of a resident travel agency, etc. 10

11 Internal tourism consumption is seen as including a number of categories of expenditure that will need to be estimated separately: Those acquired through direct expenditure by the visitors themselves; Those imputed to them (consumption for own final use); Those obtained from other institutional units as transfers in kind other than social transfers in kind; Those acquired as social transfers in kind from NPISH; Those acquired as social transfers in kind from the Government; and Those acquired for their benefit by businesses and that these businesses consider as part of their costs (intermediate consumption): transportation, accommodation costs paid for by businesses. Measuring tourism within Botswana is a very substantial task because of the physical size of the country and the large number of border posts (for the measurement of international tourism). More than this, most of the border posts are road border posts involving a substantial level of cross border travel. Many Government Departments have had to contribute to this task of putting together tourism statistics. Figure 2.1: Botswana Border Posts 11

12 Estimates of internal tourism consumption have been put together based upon: Inbound International Visitors; Domestic Tourists; and The domestic component of an outbound trip by Botswana residents. Each of these components is discussed in the following sub-sections. 2.2 Inbound International Tourists The expenditure by Inbound International Tourists can be divided into: Expenditure by tourists themselves in Botswana, on which they can report; Acquisition of tourism and other services by Tour Operators spending in Botswana on behalf of tourists, from the money already paid to the tour operator (or travel agency, or ground operator) by the tourist as part of the package tour price; and Expenditure by Same-day visitors who are coming across the border and not staying the night. Each of these is reported upon in the next sub-sections. There are other expenditures that need to be estimated from other sources but these are not included for the time being Direct Spending by Tourists themselves The Visitor Arrival Statistics, from CSO/DOT, based upon the entry/departure cards (E/D Cards) collected by the Department of Immigration at the border posts indicate the numbers of people entering and leaving Botswana. From this information tourist arrivals have to be derived, taking out returning residents and various other categories of border entrants that are not included in the Inbound Tourist statistics. Definitions of Basic Tourism Units (from UNWTO) are shown in Annex 8. Details of some of these definitions are given in Annex 9. This gives an indication of the complexities in deriving information on tourist arrivals. Since Botswana has a large number of road border posts (24) as well as several airports (4), the collection of such statistics is a major operation requiring considerable cooperation between several Government Departments. Cooperation has been good both, inter alia, for the collection of tourist arrival statistics and for the visitor sample surveys carried out by DOT. The DOT published the tourism statistics for the period 2001 to 2005 in a publicly available document as shown in Figure 2.2. Figure 2.2 Tourism Statistics Publication The tourist arrivals for are shown in Table 2.1. A substantial increase in tourist arrivals in 2005 and in 2006 is anticipated. Provisional Figures for 2005 are million. One cannot understate the significance of the two neighbouring countries of South Africa and Zimbabwe. An exceptional situation exists with Zimbabwe, generating travel that has a complex mix of motives. Numbers are large and most travel is through the border post of Ramokgwebana. The proximity of the major towns/ cities in South Africa such as Mafeking, and also Pretoria and Johannesburg, together with family ties and commercial ties across the borders, inevitably results in substantial international travel. This includes cross-border travel, some of which will be within the usual environment and thus should not be counted as tourism. 12

13 Table 2.1: Tourist Arrivals by Country of Residence (Overnight Visitors) Residence Africa South Africa 557, , , ,207 Zimbabwe 354, , , ,328 Namibia 50,251 64,001 69,587 57,542 Zambia 41,430 25,637 83,588 72,492 Americas USA 21,619 16,322 15,087 17,670 Canada 2,632 1,932 2,065 2,811 Far East Australia 5,669 5,728 5,708 5,595 Japan 3,144 2,281 2,492 2,518 Europe UK 18,486 20,548 18,518 24,069 Germany 9,170 9,985 10,444 9,685 Netherlands 6,342 6,377 6,146 4,929 France 4,381 3,596 3,732 3,989 Italy 3,087 2,323 2,782 3,196 Total 1,193,399 1,273,814 1,405,985 1,522,847 Source: Tourism Statistics , Department of Tourism Tourist arrivals give an indication of numbers coming into Botswana but these numbers have to be converted into tourist expenditure. This requires information on how long visitors are staying in Botswana and how much they are spending in Botswana, as well as a breakdown of what products they are spending on. Visitor Surveys play the key role in estimating this information (See Annex 3 Visitor Surveys). Key information from the Visitor Surveys on these three variables is set out below. Average Length of Stay Because a total figure for tourist arrivals embraces such a wide range of different types of visitor, many of them undertaking different activities and staying for varying periods, it is best to try to segment this total in various ways. Country of residence and the purpose of visit have been looked at in particular. Average length of stay varies according to the purpose of visit. Examples include some transit visitors who are staying for only a night whilst holiday visitors can be staying for nearly six nights on average. For our reference year of 2005/2006 an average for the length of stay between the sample survey data for the Year 2005 and the Year 2006, as shown in Annex 3 - Table A3.1, has been adopted. In order to use figures with a lower relative sampling error, the sample data has often been brought together into larger groupings. The relative sampling error (the standard error times % confidence level) has been calculated as a percentage of the arithmetic mean. Photo 3: Interviewing at Tlokweng Gate Average Direct Expenditure per Day Expenditure data has been gleaned from the DOT visitor surveys for 2005 and In a similar manner to the length of stay, for our reference year of 2005/2006, An average for the expenditure per day between the sample survey data for the Year 2005 and the Year 2006 has been adopted. Using the country of residence and the purpose of visit as a way of segmenting the total figures allows one to take into account the considerable disparity in length of stay and expenditure per day between individual tourist arrivals. The base figures for expenditure per day are shown in Annex 3 - Table A3.2. Ideally it is good practice to focus upon expenditure with relative sampling errors below 25%, but this has not always been possible in this process. 13

14 Total Direct Spending for Overnight Visitors in 2005/ 2006 The Total Direct Spending by visitors for 2005/2006 is then estimated by multiplying the spend per day by the average length of stay by the number of tourist visitors. This total does not include the spending on their behalf by tour operators/ ground operators/ travel agents etc. Table 2.2: Total Direct Spending for Overnight Visitors in 2005/ 2006 Total Number of Tourist Arrivals 2005/06 1,759,000 Average Length of Stay 5.3 nights Average Expenditure per Day 270 Total Direct Expenditure P million 2517 Source: Derived from DOT Arrival Statistics and Visitor Surveys The total direct spending is estimated at Pula 2,517 million for 2005/06. In reviewing the markets, as shown in Table 2.3 and Figure 2.2, the significance of the neighbouring countries is apparent, but the above figures do not include tour operator spending on behalf of tourists. Table 2.3: Total Direct Spending for Overnight Visitors in 2005/ 2006 by Market Country of Residence Proportion of Total Arrivals Average Length of stay Nights Average Direct Expenditure per day Pula Total Direct Spend P Million Proportion of total direct spend Australia 0.37% % France 0.26% % Germany 0.64% % Namibia 3.78% % South Africa 41.12% % UK 1.58% % USA 1.16% % Zambia 4.76% % Zimbabwe 37.85% % Other 8.49% % Total % , % Adjustment 17 Source: Derived from DOT Arrival Statistics and Visitor Surveys It is interesting to observe that although South Africa and Zimbabwe represent almost 80% of arrivals, the percentage is much lower in terms of total direct spend (somewhat less than 60%), because their average length of stay and their average expenditure per day is notably lower. 14

15 Figure 2.2 Direct Expenditure by Source Market DIRECT EXPENDITURE FROM SOURCE MARKET Australia France Germany Namibia Other South Africa Zimbabw e Zambia USA UK Australia France Germany Namibia South Africa UK USA Zambia Zimbabw e Other Breakdown of the Visitor Spending Sample estimates of the breakdown of overnight visitor expenditure are obtained from DOT visitor surveys in 2005 and in The key feature of these breakdowns is that this is the expenditure by the tourist himself or herself. The breakdowns of expenditure and the figures adopted for 2005/2006 are shown in the Table 2.4 below. These figures derive from the respondent s view on how much he spent on the different categories of expenditure. Table 2.4: Breakdown of the Direct Spending by Overnight Visitors in Botswana 2005/06 Adopted for 2005/2006 Direct Spend P millions Money Spent on Accommodation 33% 831 Money Spent on Meals and Drink 11% 277 Money Spent on Transport 7% 176 Money Spent on Recreation 7% 176 Money Spent on Shopping 16% 403 Money Spent on 'Other' Spending 26% 654 Total 100% 2,517 Source: DOT Visitor Surveys 15

16 Figure 2.3: Breakdown of the Direct Spending by Overnight Visitors in Botswana 2005/06 26% Accommodation 33% Meals & Drinks Local Transport Recreation Shopping 16% 11% 'Other' 7% 7% Adding Tour Operator Spending on Behalf of Tourists Expenditure by tour operators in Botswana on behalf of tourists is a part of overnight visitor expenditure (i.e. Inbound Tourism Expenditure) as required in Table 1 of the TSA. The TSA: RMF does not tabulate it as a separate component but as a part of overnight visitor expenditure. Botswana has developed a substantial tour operating business, much admired in other tourist destinations. Many leading tour operators in the country are members of HATAB (Hospitality and Tourism Association of Botswana), the coordinating body for the industry. Photo 4: Mowana Lodge HATAB Forums Even though HATAB has some excellent industry forums (See Photo of Mowana Lodge Forum, April 2007), business statistics on the tour operating/ ground operating businesses are minimal. As a consequence, it has been necessary to put together a reasonable supposition based upon what information could be obtained from sample surveys (Visitor Surveys, Tour Operator Survey, Supplier Survey carried out by DOT) and from anecdotal information in order to reach estimates for the numbers of package tours and the subsequent spending by tour operators on behalf of tourists in Botswana. 16

17 Adding in the Tour Operator Spending on behalf of tourists Separate estimates have been made for the tour operator spending on behalf of tourists, as shown in Table 2.5. These are added together with the direct spending by the tourist him/herself and this gives the totals in Table 2.6. Table 2.5: Breakdown of Spending in Botswana by the Tour Operator Percentage Breakdown Expenditure for 2005/2006 P million Money Spent on Accommodation, Food and Drink 41% 197 Money Spent on Local Transport 17% 82 Money Spent on Recreation (e.g. Park Fees, inter alia) 9% 43 Money Spent on 'Other' Spending 18% 87 Mark-Up for Tour Operator for own costs 15% 72 Total 100% 481 Table 2.6: Total Spending 2005/2006 Direct Tourist Spending plus Spending by Tour Operators on Tourists behalf Direct Spend P millions Tour Operator Spending P millions Total Spending P millions Money Spent on Accommodation ,028 Money Spent on Meals and Drink Money Spent on Transport Money Spent on Recreation Money Spent on Shopping Money Spent on 'Other' Spending Total 2, ,998 A best estimate is that the total of tourist expenditure (staying overnight visitors) is around P 3 billion in Botswana in 2005/ Same-Day Visitor Spending Same-day travel is important for Botswana but a good part of it will not be tourism. Rather it will be cross-border travel within the usual environment. Details of the estimate are shown in Annex 4. The key feature of these breakdowns is that the Same-Day Visitors into Botswana are not spending on the usual tourism services accommodation, meals and drinks, transport, recreation - or hardly at all. They are spending on shopping and on other items, which appear to encompass a whole range of other goods and services see Table 2.7. Table 2.7: Breakdown of the Total Spending by Same-day visitors in 2005/ 2006 Percent Total Spend P million Money Spent on Accommodation 2.5% 1.58 Money Spent on Meals and Drink 3.3% 2.08 Money Spent on Transport 2.5% 1.58 Money Spent on Recreation 0.5% 0.32 Money Spent on Shopping 63.2% Money Spent on 'Other' Spending 28.0% Total 100.0%

18 Figure 2.4: Breakdown of the Same-day Visitor Spending in Botswana 2005/06 DAY VISITOR EXPENDITURE BREAKDOWN 28% 3% 3% 3% 1% 62% Money Spent on Accommodation Money Spent on Transport Money Spent on Shopping Money Spent on Meals and Drink Money Spent on Recreation Money Spent on 'Other' Spending Even though Same-day visitors are not staying the night, some do hire tourism accommodation for the day. The expenditure by the three components of Inbound International Tourists, namely: Expenditure by tourists themselves in Botswana; Tour Operators spending in Botswana on behalf of tourists; and Same-day visitors. Make up of Table 1 of the TSA, as shown below. Expenditure by others on their behalf and estimated services provided on own account (second homes) are not included. 18

19 TSA TABLE 1- Inbound tourism consumption by products and categories of visitors Botswana 2005/2006 (visitor final consumption expenditure in cash) (net valuation) P millions Same-day visitors Tourists Total visitors Products (1.1) (1.2) (1.3) = (1.1) + (1.2) A. Specific products A.1 Characteristic products Accommodation 2 1,028 1,030 Food & Drink Transport Recreation Tour Operator (Margin) A.2 Connected products Shopping B. Non specific products Other Spending TOTAL 63 2,998 3,061 number of trips 213,000 1,759,000 Sources: Derived from DOT & CSO Arrival Statistics, DOT Visitor Surveys, Tour Operator Survey 2.3 Domestic Tourists number of overnights 9,300,000 Measuring Domestic Tourism Consumption requires considerable sample survey data upon household travel (making same-day trips, making tourist trips staying overnight, and making trips abroad whether same-day or staying). It also requires considerable data upon business travel by private sector companies and considerable information on travel by Government institutions including parastatals. Currently this information is not available in Botswana, though it is intended to extend the Household Survey next year (2008) to ascertain more information on residents travel habits. In the absence of this detailed information broad estimations of Domestic Tourism Consumption from different sources have been put together, as proxies for the actual statistics. It is necessary to look at Domestic Tourism Consumption from three key sources, namely: Households; Government (Central and Local); and Businesses. Information from the following has been taken into account, namely the Household Income and Expenditure Surveys (HIES), the Government Budgets and the National Accounts Data. Overall, the HIES results in 2002/2003 do lead to the view that domestic household consumption of hotels and restaurants will be lower than the domestic consumption by businesses (intermediate consumption) and the domestic consumption by Government. This broadly confirms observation in tourism accommodation. There are no figures on Government Consumption of Hotels and tourism related products. Within the Government budget the following have been identified: (1) Internal Travel; (2) External Travel, and (3) Expenditure on Councils, Exhibitions and Conferences. 19

20 Whilst P 0.9 billion is the Government budget for (1) and (3) above for 2006/2007, the precise content of this expenditure is not clear. Similarly with Businesses there is no allocation of intermediate consumption towards Hotels and Restaurants. Some 3% to 4% of intermediate consumption within the economy is not implausible. The balance between these different sources has been adapted from the Social Accounting Matrix for Botswana from 1996/97. There, the Absorption Matrix indicated that the total supply of the commodity, Hotels and Restaurants was used in the following manner: - Commodity Absorbed by: P million 1996/97 Percentage Households % Exports % Productive Activities Intermediate Consumption % Central and Local Government % Total Output % Source: Social Accounting Matrix 1996/97 The above has been adapted on anecdotal evidence to the figures below. Households Businesses Government Exports Total Breakdown 5.0% 28.0% 25.0% 42.0% 100.0% Turnover in Hotels and Restaurants P. million , , , ,082.2 But only a proportion of this turnover is associated with tourism. Also the turnover has to be divided between hotels themselves and restaurants. There are number of guideposts to the possible scale and composition of components of the hotel and restaurant trade. These are: - The turnover established through the National Accounts procedures (P4.1 billion in 2005/06); The balance between domestic arrivals and foreign arrivals at hotels (35:65 in 2005); The earnings that can be obtained from the capacity in tourism accommodation (nearly 8,000 beds); The data from the Government Budget; Information on business operations; and Information on hotel and restaurant operations. In relation to the figure for hotel and restaurant turnover of more than P 4 billion in 2005/06, to find a reasonable fit with this information it has been necessary to assume that the hotel: restaurant split is around 39:61 and also to assume that the non-tourism component is up towards 20% for the hotels and over 70% for the restaurants. Putting together estimates such as these, which could be described as broadly plausible, is a temporary measure in order to find reasonable orders of magnitude. A key issue is that using information from both the demand side and the supply side compromises the independence of the approaches and any subsequent reconciliation of data on demand and supply. However in the absence of more information this has been necessary. 20

21 2.4 Resident Outbound Tourists The information from the Bank of Botswana indicates the following for 2005/2006: - Period Travel P 000 Transport P 000 Credit Debit Credit Debit 2005 Q3 360,723 60,602 41,468 65,177 Q4 383,770 75,184 61, , Q1 15,703 71,992 64,941 71,441 Q2 381,529 58,460 44,218 81,387 Total 1,141, , , ,253 Source: Bank of Botswana Travel Credits totalled some P1.1 billion, and transport credits a further P 0.2 billion, making P1.4 billion altogether. These figures reflect foreign transactions within the banking system. Because there are so many ways to make foreign exchange transactions, these figures tend to understate the inbound tourism expenditure. The figures since the Year 2000 are shown in Annex 10. For outbound tourism spending, the figures indicate more than P 0.9 billion of which the majority is in the transport account. The domestic component of spending on trips abroad appears unlikely to exceed a substantial percentage addition because Botswana s airlines tend to deal with domestic flights and short-haul international flights. Tour operations and travel agency operations (as margins) are relatively modest in volume for outbound tourism. As a notional order of magnitude for the domestic component of trips abroad, one may be talking of 5-10%. In the context of the figures above, An arbitrary figure has been used, making it the same as the tour operator margins on the inbound tourism expenditure (P 72 million). For the estimate of outbound tourism spending the BOB figures have been used from the debits for travel and transport as a broad order of magnitude, giving a figure of P 990 million. 2.5 Tables 2 to 4 in the TSA In putting together Table 2, it has not been possible to make an estimate of same-day tourism domestic trips outside of the usual environment. There is a lot of domestic travel in Botswana, because the population moves for the purpose of finding work but is still travelling back to its traditional homelands or to see family and friends. The population does not see this travel as tourism. Given its frequency, it is questionable where to draw a line between what is tourism and what is not. Also some of the population own or rent a house where they work (e.g. Gaborone) but also have a house back in their home town or village. Going between their house in their home village and their house where they work is frequent but not seen as tourism by the local people. However, in terms of tourism analysis, the house in their home town or village to which they travel, frequently or not frequently, can be viewed as a second home. Visits to second homes are considered as tourism, irrespective of the distance to the usual place of residence and the frequency of the visit. A breakdown of domestic tourism expenditure beyond the spending in hotels and restaurants has not been possible. The balance between domestic expenditure on accommodation and on food and beverage reflects the significant level of travel to visit friends and relatives. With these reservations, estimates have been entered into Table 2 (Domestic Tourism Spending) and Table 3 (Resident Outbound Tourism Spending) and then adding together Tables 1 & 2, one obtains Table 4 which is described as Internal Tourism Consumption. 21

22 TABLE 2 - Domestic tourism consumption by products and sets of resident visitors (visitor final consumption expenditure in cash) (net valuation) Pula millions 2005/06 Products (2.1) (2.2) Resident visitors travelling to a different country(*) Resident visitors travelling only within the country of reference Sameday Total Tourists visitors Sameday Tourists Total visitors Sameday visitors visitors Visitors (2.3) = (2.6) = (2.7) = (2.1) + (2.4) + (2.1) + (2.2) (2.4) (2.5) (2.5) 2.4) All resident visitors (**) Tourists (2.8) = (2.2) + (2.5) Total visitors (2.9) = (2.3) + (2.6) A. Specific products A.1 Characteristic products Accommodation Food & Drink Transport Recreation Tour Operator/Travel Agent (Margin) A.2 Connected products Shopping B. Non specific products Other TOTAL ,053 number of trips number of overnights 22

23 TABLE 3 - Outbound tourism consumption by products and categories of visitors (visitor final consumption expenditure in cash) (net valuation) Pula millions 2005/06 Same-day Tourists Total visitors visitors Products (3.1) (3.2) (3.3)=(3.1)+(3.2) A. Specific products A.1 Characteristic products A.2 Connected products B. Non specific products TOTAL 990 number of trips number of overnights 23

24 TABLE 4 - Internal tourism consumption by products and types of tourism (net valuation) Pula millions 2005/06 Visitors final consumption Other components Internal tourism expenditure in cash of visitors consumption Inbound tourism Domestic tourism Internal tourism Consumption (in cash and in kind) consumption consumption consumption in cash Products (4.1)* (4.2)** (4.1) + (4.2) = (4.3) (4.4)*** (4.5) = (4.3) + (4.4) A. Specific products A.1 Characteristic products Accommodation 1, ,477 1,477 Food & Drink Transport Recreation Tour Operator (Margin) A.2 Connected products Shopping B. Non specific products Other TOTAL 3,061 1,053 4,114 4,114 24

25 3. TOURISM SUPPLY IN BOTSWANA 3.1 General Botswana has been fortunate in having an outstanding Central Statistics Office that has produced many exceptional surveys and ongoing statistics, giving a basis for considering the implementation of an Experimental Tourism Satellite Account. Important publications have included: National Accounts, both annual and quarterly Household Expenditure Surveys Informal Sector Survey Social Accounting Matrices Labour Statistics Foreign Trade Statistics When the work of the CSO is combined with the work of the Research and Statistics Unit of the Department of Tourism in providing primary statistics with respect to: Turning Border Statistics into Tourism Arrival Statistics Accommodation Statistics Visitor Sample Surveys Tour Operator Sample Survey Supplier Sample Survey Much of this work forms the basis for estimating the supply of tourism products and services. Table 3.1: National Accounts Data Hotels and Restaurants NA Year Turnover Cost of Sales Gross Output Intermediate Consumption Gross Value Added P Million (current prices) 1993/ / / / / / /00 1, /01 1, /02 1, , /03 2, , , /04 2, , , /05 2, , , /06 4, , , ,908.8 Source: CSO National Accounts 25

26 3.2 Tourism Characteristic Industries The TSA: RMF sets out clearly the Tourism Characteristic Industries for which it is appropriate to present information on their production (See Annex 5). Such information is reliant upon two aspects: (1) The National Accounts relating to the different production industries; and (2) The details on tourist s expenditure in the appropriate product categories as shown in Annex 5, which itself is reliant upon the sample surveys undertaken. With these constraints it has been found necessary to limit the TSA to the main tourism industries, which were: Tourism collective accommodation (but not second homes); Restaurants and similar; Road Transport; Air Transport; Travel Agencies/ Tour Operators (margins); and Other industries. Lack of information on Second Homes used for tourism purposes in Botswana means that it is not possible to compile suitable statistics. Rail travel for tourism purposes is thought to be minimal. Water Travel is similarly minimal. For the other categories of either expenditure or industries, identifying these separately has not been possible, so they are put together in the category others. In principle Goods should be treated separately from services: for goods (shopping) only the retail trade margin generates tourism value added, not the total value of the good purchased. 3.3 Production Accounts The production accounts for the above six industries have been estimated by using the information available from the CSO, for the national accounts for 2005/2006. The CSO National Accounts give the key breakdowns into Intermediate Consumption and into Gross Value Added. Both Output and Gross Value Added are in Basic Prices. The difference between Basic Prices, Producer Prices and Purchasers Prices is illustrated in Annex 6. The TSA: RMF recommends a specific format for Table 5 of the TSA, which sets out the production of products by the Tourism Characteristic Industries and then outlines the Inputs which will make up Intermediate Consumption, and then finally gives a breakdown of Gross Value Added into its components. (For the relationship between these macroeconomic aggregates, see Annex 7) A key issue here is that a particular product can be produced by more than one industry, and of course a tourism industry can produce products other than the product that is its typical output. Identifying and then measuring these different components is a critical task. Here in Botswana it has not been possible to identify these boundaries with clarity, and for this reason the gross figures of output for any industry may cover other products as well. Additionally, the output of any industry, even a tourism industry, is seldom consumed 100% by tourists. Except for the accommodation services for visitors, the bulk of the products go to nontourism use. In order to keep broad comparability with the National Accounts process, Cost of Sales has been included with Intermediate Consumption. The Production Accounts are in Table 5. 26

27 TABLE 5 - Production accounts of tourism industries and other industries (net valuation) Pula Millions 2005/06 A. Specific products 1a Accommod ation Services in 55 T O U R I S M I N D U S T R I E S 2 - Restaurants and similar 4 - Road transport 6 - Air transport 8 Travel agencies and similar TOTAL Tourism Industries Other Non tourism Industries TOTAL output of domestic producers (at basic prices) A.1 Characteristic products (5.1a) (5.2) (5.4) (5.6) (5.8) (5.13) (5.14) (5.15) = (5.13) +(5.14) 1.1 Hotels and other accommodate 1, , , Restaurants and similar 0.0 2, , , Road passenger transport services , , , Air passenger transport services Travel agencies and similar B. Non specific products , ,067.1 TOTAL output (at basic prices) 1, , , , , ,749.4 Inputs - Direct Imports & Duties , , Agriculture, forestry and fishery products Ores and minerals Electricity, gas and water Manufacturing , , Construction work and construction , , Trade services, restaurants and hotel services , , Transport, storage and communication services , , Business services , , Community, social and personal services Total intermediate consumption (purchasers pr.) , , , ,082.8 Wholesale and Retail - Cost of Sales 18, ,956.6 Total gross value added (at basic prices) , , ,710.1 Compensation of employees , ,731.4 Other taxes less subsidies on production Depreciation , ,601.1 Gross Operating surplus (including Mixed Income) , , ,376.4 Adjustment

28 4. ESTIMATION OF TOURISM VALUE ADDED 4.1 Reconciliation of Supply and Demand At the very heart of the TSA process, as recommended in the TSA: RMF is the concept of reconciling demand and supply. This is a powerful concept that attempts to improve both the collection and compilation of statistics as well as improving the analyses that are necessary to achieve it. It introduces an exemplary rigour into the process of using tourism statistics for economic analyses. The TSA: RMF again recommends a format for Table 6 which brings together this reconciliation. The key process for bringing about the reconciliation is Internal Tourism Consumption, as measured in Table 4, and the tourism share of the production of products as indicated in Table 6, as shown in the following pages. Ideally, these two measures should be entirely independent of each other. TSA:RMF suggests the following as a set of relevant indicators of the size of tourism in the economy: Internal tourism consumption (in cash and in kind); Value added of the tourism industries; Tourism value added; and Tourism GDP. 4.2 Measures of Tourism in Botswana Internal Tourism Consumption has been estimated in Table 4, and gives a figure of around P 4.1 billion. It is necessary to emphasise that this figure is mostly related to tourists. It combines international inbound tourism (both overnight visitors and same-day visitors) and domestic tourists (both overnight visitors and same-day visitors) who are travelling outside their usual environment. It also includes the domestic component of an outbound trip by a Botswana resident. The statistics are minimal upon some elements of Internal Tourism Consumption. It is reasonable to suggest that P4.1 billion is a conservative figure for Botswana. Value Added of the Tourism Industries (VATI) is shown in Table 5. It is P2.8 billion at Basic Prices. This estimate is limited to the five industries that have been identified as Tourism Industries. If figures for more Tourism Industries were identifiable, then the Value added of the Tourism Industries would be higher. On the other hand these Tourism Industries do supply many products to persons who are not visitors, so the total Value Added of the Tourism Industries has these different elements which mean that precisely what is included has to be taken into account when using these measures for economic decision-making. Tourism Value Added (TVA) is estimated in Table 6. The figure is around P 1.9 billion which is the direct impact of tourism spending. It is the gross value added in Basic Prices by the actual tourism expenditure (or consumption). It does not take into account indirect effects or induced effects. Tourism GDP (TGDP) is measured in market prices and involves adding back in product taxes. It will be broadly higher than the TVA. 28

29 TABLE 6 - Domestic Supply and Internal Tourism Consumption by Products (net valuation) Page 1 of 3 Pula million 2005/06 A. Specific products A.1 Characteristic products 1a Accommodation Services in 55 Output (5.1a) Tourism share 2 - Restaurants and similar Output (5.2) Tourism share Output (5.4) 4 - Road transport Tourism share 6 - Air transport Output (5.6) Tourism share 1 Accommodation services for visitors 1.1 Hotels and other accommodation services 2 Restaurants and similar Transport services 3.2 Road transport services Air transport services Travel agencies and similar Reservation services (1)(2) B. Non specific products Services/ Goods (3) TOTAL output (at basic prices) Direct Imports & Duties Agriculture, forestry and fishery products 2. Ores and minerals Electricity, gas and water Manufacturing Construction work and construction 6. Trade services, restaurants and hotel services 7. Transport, storage and communication services Business services Community, social and personal services Total intermediate consumption (at purchasers price) Total gross value added of activities (at basic prices) Compensation of employees Other taxes less subsidies on production Depreciation Gross Operating surplus(incl.mixed in.) Adjustment

30 TABLE 6 - Domestic Supply and Internal Tourism Consumption by Products (net valuation) Page 2 of 3 Pula millions 2005/06 A. Specific products A.1 Characteristic products 1 Accommodation services for visitors 1.1 Hotels and other accommodation services 8 - Travel agencies and similar Output (5.8) Tourism share TOTAL Tourism Industries Output (5.13) Tourism share Other Industries Output (5.14) Tourism share TOTAL output of domestic producers (at basic prices) Output (5.15) Tourism share Restaurants and similar Transport services 3.2 Road transport services Air transport services Travel agencies and similar Reservation services (1) (2) B. Non specific products Services/ Goods (3) TOTAL output (at basic prices) Direct Imports & Duties Agriculture, forestry and fishery products 2. Ores and minerals Electricity, gas and water Manufacturing Construction work and construction 6. Trade services, restaurants and hotel services 7. Transport, storage and communication services Business services Community, social and personal services Total intermediate consumption (at purchasers price) Wholesale and Retail Cost of Sales Total gross value added of activities (at basic prices) Compensation of employees Other taxes less subsidies on production Depreciation Gross Operating surplus(incl.mixed in.) Adjustment

31 TABLE 6 - Domestic Supply and Internal Tourism Consumption by Products (net valuation) Page 3 of 3 Pula millions 2005/06 Imports* Taxes less subsidies on products nationally produced and imported Output (6.1) Tourism share Output (6.2) Tourism share Trade & Transport Margins Output (6.3) Tourism share Total Domestic supply (at purchasers prices) (4) (6.4) = (5.15) +(6.1) + (6.2) + (6.3) Internal tourism consumption Rest of Demand (4.3) (6.5) = (6.4) - (4.3) A. Specific products A.1 Characteristic products 1 Accommodation services for visitors 1.1 Hotels and other accommodation services for visitors other than Restaurants and similar Transport services 3.2 Road transport services 3.4 Air transport services Travel agencies and similar other reservation services (1) (2) B. Non specific products Services/ Goods (3) TOTAL output (at basic prices) (5) *Imports excludes direct purchase of residents abroad (1) Corresponds to the services charged of the travel agencies (2) Corresponds to the services charged of the tour operators (3) Excludes valuables and tourism single purpose consumer durable goods the value of which exceed the custom threshold, and that Balance of Payments statistics and National Accounts include as imports or exports of goods under general merchandise trade (4) Domestic Supply includes both imports into Botswana and exports, which will go out of Botswana (5) includes wholesale and retail - cost of sales 31

32 5. EMPLOYMENT AND NON-MONETARY INDICATORS 5.1 Tourism Employment CSO have indicated the level of employment in the Hotels and Restaurants exceeds 11,000 in Not all such employment is associated with tourism expenditure, but then expenditure by tourists outside of Hotels and Restaurants will broadly offset the non-tourist expenditure. Employment at more than 11,000 is highly significant exceeding employment in Mining and Quarrying, in Transport and Communications, and in Finance. These figures form the basis of Table 7, which is shown below. Table 7 Employment in the Tourism Industries 2994 Number of Number of Jobs Number of Employed Persons Establishments Tourism industries Male Female Total Male Female Total 1 & 2 Hotels and Restaurants 2192 (2003) 3,925 7,127 11, Non-Monetary Indicators The last of the Tables in the TSA is Table 10, which is described as Non-Monetary Indicators, which is shown below. Tables 8 (Collective Consumption) and Table 9 (Gross Fixed Capital Formation) are as yet and for the time being not included in the TSA. Table 10 Non-Monetary Indicators a. Number of trips and overnights by type of tourism and categories of visitors Provisional Inbound tourism (*) Tourists Total Domestic tourism Tourists Total Sameday Sameday Sameday Outbound tourism Tourists 2005 in 000 visitors visitors visitors visitors visitors visitors Number of trips (*) 210 1,675 1,885 Number of overnights - million b. Inbound tourism: Number of arrivals and overnights by means of transport Total 2004 in 000 Number of arrivals 1.Air Land 1,455 Other 2 Total 1523 Number of overnights c. Number of establishments and capacity by forms of accommodation Hotels and similar number of establishments capacity (rooms) 4,050 capacity (beds) 7,800 capacity utilization (rooms) 41.5% (sample) capacity utilization (beds) 36.0% (sample) 32

33 d. Number of establishments in tourism characteristic and tourism connected activities classified according to number of employed persons 2003 Nil WP Unknown TOTAL Tourism Characteristic activities 1 & 2 Hotels and Restaurants 6 1, WP = Working Proprietor 33

34 6. CONCLUSIONS 6.1 Contribution to the Economy The key question that is often asked is what is the contribution of tourism to the Botswana economy? The response is frequently framed in terms of Contribution to GDP from tourism expenditure. The TSA process here indicates that TVA is around P1.9 billion in 2005/2006. Comparing this with Gross Value Added in the National Accounts for 2005/2006 of P 54.8 billion (provisional figures) indicates that the Direct Contribution of Tourist Expenditure (consumption) is around 3.4% to Botswana s GDP. It should be emphasised that this is the direct contribution and there are further indirect contributions that can arise from the chain of value added by suppliers to the tourism industry, and then from suppliers to these suppliers, etc. who have no direct connection with the tourist, himself/herself. Indirect contribution can vary substantially, and can lie usually anywhere between 25% and 75% of the direct contribution. If this were to apply in Botswana, it might be that the direct + indirect contribution would lie between 4.2% and 6.0%. These contributions relate to the impact of the expenditure/consumption. They do not include for capital expenditure (which can be highly variable through the years). The induced impacts are more abstract: they take into consideration the effects of increased income on expenditure, and then, the effects of these increased expenditures on GDP. 6.2 Leakages and Linkages Leakages and linkages are frequently mentioned in the context of economic initiatives to reduce leakages and to improve linkages. The Supply Survey and the Accommodation Survey carried out and put together by DOT indicated a number of opportunities for reducing leakages and improving linkages. The most important of these are: Increasing the number of Botswana in employment in the tourism industries Compared with some other destinations (e.g. Kenya), there is still an opportunity to encourage more employment in Botswana. The current levels of around 6% from abroad in the hotels could perhaps be substantially reduced. Kenya is now less than 1%. There, all staff are local unless there is some exceptional skill that the foreign staff bring to a post e.g. speak Russian. If there is suitable training and there is the same level of productivity from local labour then Botswana employment can be increased. However, this should be done in conjunction with the owners of the businesses, who nowadays are always seeking the most productive solutions, so there is no point in having foreign staff if local staff can do the job. But there is an opportunity. Encouraging the provision of local services and local supplies by Botswana The Supplier Survey, whilst not statistically significant, does indicate that there is an opportunity for increasing supplies from local producers and local services. However, as with staff, they have to be equal in productivity and quality. Again, there is an opportunity. Mostly they have to do with the reduction of the dependency on imported inputs and capital goods, and their substitutions with nationally produced goods: this has to do with the industrial development of the country. Regarding food serving services, it might be possible to promote the production of food stuff, and also the promotion of the use of local food in restaurants, based on locally available inputs. 34

35 Encouraging the private sector tour operators to make available more information on their operations in Botswana, through the medium of HATAB Understandably there is a view that revenues declared and taxes paid in Botswana by some of the tour operators are not as high as it could be. Inevitably there is some scope for transfer pricing, but no serious data is available to draw any conclusions on this. Transfer pricing refers to the pricing of goods and services within a business organization, particularly in regard to cross-border transactions. In effect, the business is able to price services and goods sold to itself such that it can reduce its exposure to tax in a particular economy. The answer for Botswana to clarify such an issue would be for there to be more transparency and more information shared by the tourism industry with their representative body, HATAB, and then informed discussion between Government and the industry can take place. The Government does play a most important part in looking after the environment and wildlife, spending significant sums of taxpayers money. Clearly informed debate could be to mutual benefit. Probably such an initiative through HATAB would address concerns about leakage. 6.3 Conclusions on the TSA Process A very substantial effort has gone into collecting primary statistics on tourism in Botswana, where the collection of primary statistics is not easy because of the large physical scale of the country because of the large number of border posts, and because of the large number of business enterprises involved with tourists. The TSA requires a great deal of collaboration to collect, compile and analyse primary statistics from a whole range of different institutions DOT, CSO, BOB and UB to name some key players. Such collaboration has been good and can continue to be so. The process has helped in the strengthening of the statistical capacity within the country (an objective of the UNWTO/ UNDP), which is already at a high level, but there is always a value in continuing to update. Presenting an Experimental TSA, as recent as 2005/2006, is a relatively rare event, even in some of the very advanced statistical nations. Of course, there are many improvements that can be made to this TSA process. Many will probably be made in the next two to three years with the whole range of new sample surveys being carried out by the CSO. Particularly important are considerations regarding the visitors and tourist arrivals to ensure that there is not the inclusion of arriving non-residents that are not visitors. Also the measurement of domestic tourism consumption is essential. Despite the extensive range of statistics available, it has been necessary to work with anecdotal information as well, especially in relation to private sector activities. Where improvements could be made in forthcoming years are with respect to: More statistical information on private sector activities, in particular the numbers of tourists coming on package tours to Botswana would be helpful. Breakdowns on how part of the package tour price is spent in Botswana would also improve the TSA process. It is recommended that HATAB along with DOT be a key player in obtaining such information; Information on domestic tourism, not only by households (to be picked up next year by DOT in cooperation with CSO in a Household Survey) but also tourism by Government staff and by businesses is needed. It is recommended that the DOT add an accommodation sample survey to their accommodation statistics process; and Updating of the Social Accounting Matrix by the CSO is recommended. It is a major exercise but one that would be highly valuable for the TSA process, and one that could 35

36 be achieved following the important surveys that are being carried out by CSO currently and in the next couple of years. 6.4 The Way Forward The following table provides a list of action items that are required to move tourism statistics forward in Botswana, as well as improve the statistical base in future revisions of the TSA. The key bodies responsible for each action item are shown, as is the proposed timing (short = during 2008, medium = years, long = 2012 onwards). The statistical coverage of each action item is also indicated. Action Item Responsibility Timing Statistical Coverage Domestic Tourism Survey Training for DOT on statistics analysis Tourism Statistics Database Maintenance Production on Quarterly Accommodation Reports CSO, DOT Short Domestic Tourism, TSA Tables 2 and 10 Consultant Input Short All Statistics Consultant Input Short All Statistics DOT Short Accommodation Statistics Annual Visitor Survey DOT Short / Medium Inbound Visitor Expenditure, TSA Table 1 Production of Annual Tourism Statistics Report Update Social Accounting Matrix Tourism Employment Survey Package Holiday/Tour Operator Survey DOT Short / Medium All Statistics CSO Medium TSA Table 5 DOT, CSO Medium TSA Tables 7 and 10 DOT Medium Inbound Visitor Expenditure, TSA Table 1 Computerization of border posts Department of Immigration Medium Inbound Visitor Arrivals, TSA Tables 1 and 10 Update TSA for a new reference year CSO, DOT, Consultant Input Medium All Statistics 36

37 ANNEX 1: TERMS OF REFERENCE The development of the Experimental TSA is Phase 2 of the overall project involving the Strengthening of Tourism Statistics in Botswana. The original Project Document states: TSA Development: The level of development of the TSA will be dependent on the success of the data collection. However, the developed TSA should be considered to be a preliminary TSA until the data collection procedures become more established and the data can be verified further. Phase 2: TSA Development This phase will focus on the development of the TSA, commencing with tables 1, 7 and 10 (that is inbound tourism consumption, employment and non-monetary tourism indicators). The successful development of these tables will trigger (albeit to a preliminary level) development of Tables 2 and 3 (domestic and outbound tourism consumption), Table 4 (consolidation of Tables 1 and 2) and Table 5 (production accounts of the tourism supply). This will culminate in the generation of Table 6, the core of the TSA system, where the confrontation between supply and demand (internal tourism consumption) takes place. Preliminary calculations, such as Tourism Value Added (TVA) and Tourism GDP will be undertaken at this stage. Work Programme for the Botswana TSA The Work Programme for the TSA has built upon a combination of sample surveys, national accounting statistics, Social Accounting Matrices, and analytical exercises to arrive at a reasonable set of estimates of the information to go into the Experimental Tourism Satellite Account for Botswana. The guidelines indicated in the TSA: RMF (Recommended Methodological Framework) established by the UNWTO and endorsed by the OECD and the European Commission (Eurostat) have been followed. 37

38 ANNEX 2: TSA DEFINITIONS Internal tourism consumption is the amount of visitor consumption within the economic territory of the country of reference. Visitor consumption includes flows tourism business expenses which national accounts classify within the intermediate consumption of productive activities and not as part of final demand. In this context a visitor includes inbound visitors to the country of reference (same day and staying the night), domestic visitors within the country of reference, and resident s consumption within the country of reference as part of a visit abroad. Value added of the tourism industries simply sums the total value added of all characteristic producers, regardless of whether all of their product is provided to visitors. It leaves out the effect of visitor consumption on other productive activities that might serve them. The estimate of the value added of tourism industries is dependent on the definition of the characteristic industries. Value added of tourism industries is a measure of the supply side of tourism but is not sufficiently well defined in terms of its links to visitor consumption to allow it to be the most accurate measure of tourism supply. Tourism value added includes the proportion of value added generated by all industries in the provision of goods and services to visitors. Gross Domestic Product generated by Internal tourism consumption is the sum of the value added (at basic prices) generated by all industries in response to internal tourism consumption and the amount of net taxes on products and imports included within the value of this expenditure. Classifications In the TSA, Products and Activities (Industries) are classified as: Products Activities (industries) A. Tourism Specific A. Tourism Specific A1 Tourism Characteristic A1 Tourism Characteristic A2 - Tourism Connected A2 - Tourism Connected B. Non- Specific B. Non- Specific Source: TSA:RMF The TSA:RMF points out that the classifications to be used will also respond to different stages of development of classifications at the international level. The TSA defines a tourism characteristic industry as a group of establishments whose principal productive activity is a tourism characteristic activity. Tourism industries are the group of all tourism characteristic industries. Products considered as tourism characteristic, tourism connected and tourism specific follow roughly the following pragmatic criteria: Tourism-characteristic products: products which in the absence of visitors, in most countries would probably cease to exist in meaningful quantity or for which the level of consumption would be significantly reduced and for which it seems possible to obtain statistical information; Tourism-connected products: a residual category, including those that have been identified as tourism-specific in a given country but for which this attribute has not been acknowledged on a worldwide basis; and Tourism-specific products: the sum of the two previous categories. 38

39 Classifications do not exist for connected products, and as the TSA:RMF indicates, some countries may include different products and activities under the categories of characteristic and connected. Key issues that make measurement difficult for the purposes of focusing upon tourism are: that particular broad product categories can be produced by many different activities/industries; and that an industry, broadly defined, may produce many different products, some to serve visitors, some to serve residents and some to serve both visitors and residents. The TSA: RMF neatly encapsulates the difficulty in the Figure below. Also the pragmatic criteria for identifying products does emphasise the need to use product categories for which it seems possible to obtain statistical information. Data Transformations Developing a country s TSA requires from the compiler not only a basic set of direct data-collection procedures but also a transformation and partitioning of the information already existing in the national accounts of a country into the tourism orientation embodied in the TSA. This process includes: - The extraction of data on tourism-specific products and activities from the databases used for the elaboration of make and use matrices of national accounts; The transformation of package tours from their gross valuation in the national accounts to the net valuation required by the TSA; The extraction of the value of travel agency services from the costs of the services in which they are included; The breakdown of the value of goods acquired by visitors between the distribution margins and the basic value of the good; The identification of visitor consumption in all its components as distinct from nonvisitor consumption; and A dual classification of business tourism expenses, both as a component of visitor consumption where the balance between supply and use is concerned, and as a cost of production of productive activities when describing these production processes and establishing tourism value added and tourism gross domestic product. 39

40 Of the six transformations of basic information, four of them (different classifications for products and activities, separation of the margins from the value of goods, identification of visitor consumption, and dual classification of business expenses) mean that the breakdowns by products and activities are modified but the not the total values themselves. However, this is not the case for the net valuation of package tours and for the extraction of travel agency services, which have implications for the values and classifications of flows within the different concepts of visitor consumption. Key Economic Concepts It is fair to say that Tourism Satellite Accounts are still very much a work in progress. There are methodological issues that are continually being refined. 40

41 ANNEX 3: VISTOR SURVEYS DOT has developed considerable expertise in carrying out sample surveys of visitors since the Year 2000 with UNDP/UNWTO guidance. These sample surveys take place in April and October and total interviews exceed These sample surveys provide the key estimates of average length of stay and expenditure per day. For the development of the TSA the sample surveys carried out in 2005 (April and October) and similarly in 2006 have been used. In addition a Visitor Survey was carried in April 2007 by DOT. There are a large number of Border Posts in Botswana. Some of these border posts could be described as remote and indeed conditions for interviewing are not at all easy. Photo A3.1: Interviewer s Living Conditions in Ngoma illustrating the substantial field operations required to collect primary statistics often in remote border areas. Average Length of Stay Because a total figure for tourist arrivals embraces such a wide range of different types of visitor, many of them undertaking different activities and staying for varying periods, it is best to try to segment this total in various ways. Country of residence and the purpose of visit have been looked at in particular. Average length of stay varies according to the purpose of visit. Examples include transit visitors who are staying for only a night whilst holiday visitors can be staying for nearly six nights on average. For the reference year of 2005/2006 an average has been adopted for the length of stay between the sample survey data for the Year 2005 and the Year 2006, as shown in Table A3.1. In order to use figures with a lower relative sampling error, the sample data has often been brought together into larger groupings. The relative sampling error (the standard error times % confidence level) has been calculated as a percentage of the arithmetic mean. 41

42 Table A3.1: Average Length of Stay Country of Residence & Purpose of Visit Australia 2005 Mean Nights N 2005 Median Nights Relative Sampling Error 2006 Mean Nights N 2006 Median Nights Relative Sampling Error 2005/ 2006 Nights Holiday or Leisure % % 8.8 Total % % 8.5 France Holiday or Leisure % % 7.1 Germany Holiday or Leisure % % 7.1 Total % % 7.8 Namibia Holiday or Leisure % % 3.9 In Transit % % 0.8 VFR % % 5.5 Total % % 3.6 Netherlands Holiday or Leisure % % 6.0 Total % % 5.8 South Africa Business % % 2.8 Holiday or Leisure % % 4.6 In Transit % % 0.7 VFR % % 4.6 Total % % 3.6 United Kingdom Holiday or Leisure % % 7.2 Total % % 8.2 USA Holiday or Leisure % % 8.6 Total % % 8.8 Zambia Holiday or Leisure % % 3.1 Zimbabwe Business % % 2.9 Holiday or Leisure % % 3.6 In Transit % % 0.7 VFR % % 6.6 Total % % 5.9 Total Business % % 3.6 Holiday or Leisure % % 5.7 In Transit % % 0.8 VFR % % 6.4 Total % % 5.3 Source: DOT Visitor Surveys in 2005 &

43 Table A3.2: Average Spend per Day Pula Country of Residence & Purpose of Visit Australia Mean Spend Pula N 2005 Median Spend Pula Relative Sampling Error Mean Spend Pula N 2006 Median Spend Pula Relative Sampling Error 2005/ 2006 Spend P Total % % 580 France Total % % 513 Germany Total % % 475 Namibia Business % % 325 Holiday /Leisure % % 244 In Transit % % 212 Total % % 279 Netherlands Holiday /Leisure % % 283 Total % % 283 South Africa Business % % 479 Holiday /Leisure % % 279 In Transit % % 222 VFR % % 144 Total % % 333 United Kingdom Holiday /Leisure % % 546 Total % % 567 USA Business % % 756 Holiday /Leisure % % 559 Total % % 591 Zambia Holiday /Leisure % % 215 Total % % 408 Zimbabwe Business % % 263 Holiday /Leisure % % 233 In Transit % % 124 VFR % % 126 Total % % 149 Total Business % % 466 Holiday /Leisure % % 364 In Transit % % 233 VFR % % 141 Total % % 270 Source: DOT Visitor Surveys in 2005 &

44 Average Direct Expenditure per day Expenditure data has been gleaned from the DOT visitor surveys for 2005 and In a similar manner to the length of stay, for our reference year of 2005/2006 an average for the expenditure per day between the sample survey data for the Year 2005 and the Year 2006 has been adopted. Using the country of residence and the purpose of visit as a way of segmenting the total figures allows one to take into account the considerable disparity in length of stay and expenditure per day between individual tourist arrivals. The base figures for expenditure per day are shown in Table A3.2. Ideally it is good practice to focus upon expenditure with relative sampling errors below 25%, but this has not always been possible in this process. Relative Sampling Errors are 1.96 times Standard Error - 95% confidence level. 44

45 ANNEX 4: SAME-DAY VISITORS INTERNATIONAL INBOUND 1. General Expenditure by Same-Day Visitors is part of Inbound Tourism Expenditure as required in Table 1 of the TSA. In a country with a large physical area, with many road border posts, and often with strong ties between family/friends across borders, and frequent commercial relationships between neighbouring border towns, inevitably same-day visitors (day visitors) can be substantial. For Botswana, there are many ties with South Africa and also with Zimbabwe. For the latter country, there are exceptional circumstances leading to travel which looks like tourism travel in that Zimbabweans are visiting Botswana in ever increasing numbers. But it is difficult to distinguish between genuine same-day tourist travel, cross border travel which is really within the usual environment (frequency/distance) and other travel, such as short-term visits for the purpose of picking up casual employment through the week and going home at the weekend, which are not tourism visits because the traveller is being employed in the country visited, etc. (e.g. Zimbabweans in Francistown, as the DOT interviewers found in anecdotal discussions in Ramokgwebana see Photo A4.1 of Ramokgwebana border post above, the interviewers in the foreground). 2. Same-day visitor numbers The Visitor Arrival Statistics, from CSO/ DOT, indicate that Day Visitors in 2004 were 204,000 and provisional figures for 2005 were 210,000. Provisional figures for 2005/2006 indicate a total of around 213,000 day visitors. Table A4.1: Breakdown of Day visitors by Country of Residence for 2005/2006 Other 3% Namibia 5% South Africa 42% Zambia 1% Zimbabwe 50% The same-day visitors are primarily from the neighbours, South Africa and Zimbabwe, and to a much smaller extent from Namibia and Zambia. In addition there are small numbers from other countries of residence but these are people visiting South Africa, Zimbabwe, Zambia and Namibia, and just coming over for a daytrip to Botswana, or indeed transiting Botswana (e.g. Germans transiting to Namibia). 3. Day visitor spend per trip Expenditure data has been gleaned from the DOT visitor surveys for those respondents who indicated that they were not staying the night in Botswana. Expenditure statistics are available for same-day visitors from South Africa, Zimbabwe and Namibia. Sample numbers from Zambia are too small to allow reasonable estimates of such spending. Median expenditures for Day visitors are similar for all three of the fore-mentioned neighbouring countries at around Pula 50 per day visit. The differences in the arithmetic means are caused by relatively small numbers of higher than average spenders. The high spending derives from either shopping spending or from 45

46 Spend per person spending on other items. From South Africa there are a number of relatively high spenders businessmen flying over for the day and spending on lunch and other items but these are small in number. From Zimbabwe, there are high spenders coming over and shopping, because of the lack of goods in their own country, and also spending on other goods and services. If such behaviour is routine then they should be considered as being within their usual environment. Anecdotal evidence suggests that some Zimbabweans are coming over to complete banking transactions and foreign exchange transactions, which are tedious in their own country. Some of these may also be considered as being within their usual environment. There is then an issue of these transactions having an effect on the travel item of the Balance of Payments, even though they are not visitors. Figure A4.1: Same-day visitor spending per trip Outliers ,516 3,828 Investigation of the frequency distributions for the Same-day visitor spending suggests that some of the high levels of expenditure could be described as outliers or freak results. An illustration of the process is shown in the Figure alongside ,559 4,465 4,166 2,341 It may also be that these outliers correspond to the non-tourism type of traveller and the expenditure is not for own use or as a gift ,858 4,297 4,210 3,262 3,228 3,614 2,732 3,886 3,746 2,367 Because of these outliers, the view has been taken that it is better to use the lower of the means obtained in either 2005 or 2006 as the appropriate statistic to be adopted for the 2005/2006 analyses. India Namibia South Africa Zambia Zimbabwe Country of Residence The estimates for Same-day visitor spending are shown in the Table below. Table A4.2: Spending on the Same-day Visit Trip - Pula Country of Residence 2005 Statistic 2006 Statistic Adopted for 2005/2006 Namibia Mean Relative Sampling Error 117% 53% 5% Trimmed Mean Median South Africa Mean Relative Sampling Error 65% 77% 5% Trimmed Mean Median Zimbabwe Mean Relative Sampling Error 27% 78% 5% Trimmed Mean Median

47 4. Total Spending by Same-day visitors The Total Spending by Same-day visitors for 2005/2006 (day visitors) is then estimated by multiplying the Spend per Same-day visitor by the number of Same-day visitors. Table A4.3: Total Spending by Same-day visitors in 2005/ 2006 Total Number of Same-day visitors 213,000 Country of Residence Percent Spend Total Spend Pula P million Other 2.5% Namibia 4.5% South Africa 42.0% Zambia 1.0% Zimbabwe 50.0% The total day visitor spending is estimated at Pula 63 million for 2005/06. It is fair to mention that the relative sampling errors that are associated with these statistics are upwards of 60%. So, as with any estimates involving sampling, it is necessary to indicate that this estimate (P 63 million) could lie with 95% confidence levels anywhere between P25million and P100 million (approximately). 5. Breakdown of the Same-day visitor spending Sample estimates of the breakdown of day visitor expenditure are obtained from DOT visitor surveys in 2005 and in The key feature of these breakdowns is that the day visitors into Botswana are not spending on the usual tourism services accommodation, meals and drinks, transport, recreation - or hardly at all. They are spending on shopping and on other items, which appear to encompass a whole range of other goods and services. To some extent these findings coincide with simple observation. Zimbabweans are coming across to make transactions within Botswana that perhaps in other years they may have made within their own country. South Africa is different to Zimbabwe but again the focus of expenditure is upon shopping and other items. Estimates for South African expenditure could be influenced by the strong involvement of South African companies in the Botswana economy. For example, some business expenditure by a South African day visitor will be met by the local office in, say, Gaborone. So DOT interviewers at Sir Seretse Khama airport, would come across South Africans, both same-day visitors and overnight visitors, who had spent almost nothing because all their costs had been picked up by the company in Botswana. The breakdowns of expenditure and the figures adopted for 2005/2006 are shown in the Table below. Table A4.4: Breakdown of Spending on the Same-day Visit Trip - Percent 2005 Statistic 2006 Statistic Adopted for 2005/2006 Money Spent on Accommodation 1.1% 3.9% 2.5% Money Spent on Meals and Drink 2.7% 4.0% 3.3% Money Spent on Transport 3.0% 1.9% 2.5% Money Spent on Recreation 0.1% 0.8% 0.5% Money Spent on Shopping 64.4% 0.1% 63.2% Money Spent on 'Other' Spending 28.8% 89.3% 28.0% Total 100.0% 100.0% 100.0% 47

48 The breakdown of the total Same-day visitor spending in 2005/2006 is shown in the Table A4.5 below. Table A4.5: Breakdown of the Total Spending by Same-day visitors in 2005/ 2006 Total Expenditure by Day visitors P million 63 Country of Residence Percent Total Spend P million Money Spent on Accommodation 2.5% 1.58 Money Spent on Meals and Drink 3.3% 2.08 Money Spent on Transport 2.5% 1.58 Money Spent on Recreation 0.5% 0.32 Money Spent on Shopping 63.2% Money Spent on 'Other' Spending 28.0% Total 100.0%

49 ANNEX 5: TOURISM CHARACTERISTIC PRODUCTS AND ACTIVITIES Tourism Characteristic Products A. Specific products A.1 Characteristic products 1 Accommodation services 1.1 Hotels and other lodging services 1.2 Second homes services on own account or for free 2 Food and beverage serving services 3 Passenger transport services 3.1 Interurban railway 3.2 Road 3.3 Water 3.4 Air 3.5 Supporting services 3.6 Transport equipment rental 3.7 Maintenance and repair services 4 Travel agency, tour operator and tourist guide services 4.1 Travel agency 4.2 Tour operator 4.3 Tourist information and tourist guide 5 Cultural services 5.1 Performing arts 5.2 Museum and other cultural services 6 Recreation and other entertainment services 6.1 Sports and recreational sport services 6.2 Other amusement and recreational services 7 Miscellaneous tourism services 7.1 Financial and insurance services 7.2 Other good rental services 7.3 Other tourism services Linked to CPC Source: TSA:RMF Figures 4.3 & 4.4 Tourism Characteristic Activities 1 - Hotels and similar 2 - Second home ownership (imputed) 3 - Restaurants and similar 4 - Railway passenger transport 5 - Road passenger transport 6 - Water passenger transport 7 - Air passenger transport 8 - Passenger transport supporting industries 9 - Passenger transport equipment rental 10 - Travel agencies and similar 11 - Cultural services 12 - Sporting and other recreational services Linked to ISIC Rev.3 and SICTA 49

50 ANNEX 6: BASIC PRICES AND PURCHASERS PRICES Source: SNA 93 50