Previous conversations on tourism incentives in Africa have been geared towards tourism SMEs and investors – tax holidays, grants and funding opportunities, etc. But what incentives are made available for tourists to visit and spend on the local leisure economy? What is the pull factor? What can Africa do to incentivise tourists to travel, especially domestically?
A possible solution is harnessing the power of the African Continental Free Trade Area Agreement (AfCFTA). Even though many believe that the AfCFTA agreement covers trade only, examining the fine print shows that it encompasses much more. The agreement also covers trade in services across a wide range of sectors such as finance, telecommunications, transportation, professional services, and tourism, among others.
The aim of including services in the agreement is to promote the development of services industries in Africa and to create new opportunities for businesses and entrepreneurs.
Under AfCFTA, participating countries commit to progressively liberalise trade in services by reducing barriers to entry and facilitating the movement of service providers across borders. Expanding transport routes, reducing tariffs on travel and visa entry requirements – borderless travel if you can call it that – are just a few ways this agreement can be utilised.
The transportation and tourism sectors will definitely benefit from such opportunities.
Which countries are actively working to increase tourism opportunities?
Beyond AfCFTA, several countries in Africa have also adopted bilateral agreements to facilitate trade and cross-border movement. For example:
- Botswana and Namibia recently signed an agreement that will allow their citizens to cross the two countries’ borders without passports. Citizens will only be required to produce their national identity cards at crossing points.
- The Mozambican government also approved a waiver on entry visas for tourism and business purposes for visitors from 28 countries which include the African countries of Ghana, Ivory Coast and Senegal. Several European countries also benefited from this visa waiver.
- Kenya and Eritrea have agreed to permanently scrap visa requirements for their citizens. Kenya and Djibouti have also done the same more recently.
- Zimbabwe and Zambia are about to conclude an agreement to establish, develop and manage the Lower Zambezi Mana Pools Trans-Frontier Conservation Area, which is on the border between the two countries.
- ECOWAS is accelerating plans on the ECOWAS visa which will facilitate the entry of migrants from third countries.
All of these happened in the first quarter of 2023, and it is just exciting to see how fast African countries are adopting measures to boost travel between countries. Agriculture, transportation, education, and even sports will benefit directly and indirectly from these policies.
What other incentives can be given to tourists?
In addition to this, tourists can also be offered incentives to visit. Taiwan burst onto the scene with an ingenious idea to meet its target of 6 million tourists in 2023. The first stage of the plan involves offering up to 500,000 tourists a cash or discount incentive of 5,000 New Taiwan dollars (US$165).
Travel agencies have also been roped into the scheme and they stand a chance to receive NT$10,000 (US$330) each for groups of at least eight tourists, and NT$20,000 (US$660) each for groups of at least 15 tourists. The Taiwanese government has even gone a mite further to offer hoteliers a NT$5,000 (US$165) bonus per month, for each new employee hired. Because of this, many travel agencies, hoteliers and even locals have been working extra hard to induce tourists to visit.
The government can also partner with transportation agencies such as airlines, marketing agencies, tourism agencies, and influencer groups as part of a concerted effort to promote positive narratives about destinations in Africa If we feel more charitable, a campaign offering free flight tickets – especially to overseas visitors, can help do the trick.
Overall, the success of such a venture is contingent on developing an efficient and holistic master plan which is aimed at promoting economic growth and development in the African region.