WHITE SAND AND TURQUOISE WATERS
Mozambique is located in one of the African continent's most popular regions for luxury tourism, and the country is trying to attract a greater share of the action.
Tourism is recognized as an economic activity of global importance. According to estimates from the World Travel & Tourism Council (WTTC), the tourism and travel sector generates around $7 trillion per year, represents around 9.5% of global GDP, and provides employment to over 260 million people worldwide. These numbers have followed a positive trend over the past years and they are expected to keep growing. In fact, according to data from the United Nations World Tourism Organization (UNWTO), international tourist arrivals increased by 51 million in 2014, reaching a total of over 1 billion.
The 2015 Travel & Tourism Competitiveness Report by the World Economic Forum shows that the most competitive economies in terms of tourism and travel in Sub-Saharan Africa are South Africa, ranking 48th, Seychelles in 54th, Mauritius in 56th, Namibia in 70th, and Kenya in 78th. Despite its 2,700km of coastline and mesmerizing landscapes, Mozambique does not make the list until the 130th spot. According to Albino Celestino Mahumana, Director General of Mozambique Tourism Authority (INATUR), tourism currently contributes 5-6% of Mozambican GDP. However, INATUR believes there is potential for that number to reach 10%.
During the first half of 2015 Mozambique received more than 830,000 foreign tourists and tourism revenue reached $85 million. Mr. Mahumana told TBY that in 2016 the country wants to have 1.5 million visitors. Despite the numbers, Mozambique might very well be one of the most underrated countries in global tourism.
In order to solve this problem, the government of Mozambique recently approved the Mozambique Strategic Plan for Tourism Development 2015-2024, hoping to increase its competitiveness in the sector, promote investments, and improve the regulatory framework that governs the industry. This strategy also aims to increase the quantity and quality of accommodations in the country and to bring in new brands and more luxury choices to the market.
According to a recent survey by New World Wealth SA, the most popular African destination for individuals with net assets of over $10 million is South Africa. From September 2014 to September 2015, the African continent hosted 43,000 multi-millionaires, of whom only 1,000 went to Mozambique. South Africa had the largest number of super-rich visitors, with 11,000 tourists arriving. Given to Mozambique's close proximity to South Africa, it seems it should be able to take advantage of its neighbor's assets. Countries like Botswana and Kenya hosted 2,000 more super-rich tourists than Mozambique.
In terms of luxury developments, Mr. Mahumana mentioned Milibangalala, a luxury lodge in a conservation area that will be complete by the end of 2016 or beginning of 2017. Similar luxury lodges can be found at the Bazaruto Archipelago or Quirimbas, a group of 32 stunning islands surrounded by white sand and turquoise waters. In order to facilitate the movement of tourists the airports at Vilankulo and Nacala International Airport, recently inaugurated, can reduce the flight time from and to Europe by two hours.
In order to satisfy the demands of this type of tourism, Mozambique needs to invest in hospitality training. As Mr. Mahumana told TBY, Mozambique needs to “reach high standards of service to meet the expectations of visitors and tourists coming to the country. The government has set training in hospitality and tourism as a priority. … We need excellence in training if we are to attain overall excellence in the tourism industry.”
WHITE SAND AND TURQUOISE WATERS
TABLE OF CONTENTS
Review: Economy
Much to Gain
Despite numerous years of considerable economic growth, Mozambique has been unable to retain its wealth and bring more than half of its population out of poverty. Developing one of the world's largest gas reserves and becoming a regional exporter of energy may be the solution.
read articleFocus: Aluminum
Foil Plans
Mozambique is the second-largest producer of aluminum in Africa and the 14th in the world. Since 2000, it has been producing aluminum for export, and in 2015 Midal Cables opened a factory near Mozal; the country's largest aluminum smelter. This could be the start of a Mozambican aluminum value chain.
read articleInterview
Ben James, Managing Director, Baobab Resources
TBY talks to Ben James, Baobab's Managing Director, resident in Mozambique. A geologist by training, Ben has been directly involved with the development of the Company's Tete Project from a greenfields iron ore discovery to an asset on the verge of corner-stoning Mozambique's nascent steel industry.
read articleFocus: Aluminum
Aluminum Legacy
Mozambique is the second-largest producer of aluminum in Africa and the 14th in the world. Since 2000, it has been producing aluminum for export, and in 2015 Midal Cables opened a factory near Mozal; the country's largest aluminum smelter. This could be the start of a Mozambican aluminum value chain.
read articleInterview
Hon. Jorge Olívio Penicela Nhambiu, Minister, Science and Technology, Higher and Technical Vocational Education (MCTESTP)
TBY talks to Hon. Jorge Olívio Penicela Nhambiu, Minister of Science and Technology, Higher and Technical Vocational Education (MCTESTP), on bringing science and technology to rural areas and increasing research in the country.
read articleFocus: E-government + E-bau
Digital Decisions
Between 2015 and 2016, Mozambique fell five positions in the World Bank's Ease of Doing Business Index. The government is investing in the GovNET and e-BAU platforms to facilitate procedures and cut the costs of acquiring business licenses and improving services provided to the public.
read articleReview: Health
Time for a check-up
Mozambique's healthcare budget rose to $561.5 million in 2015, an increase of 1.1% on expenditure in 2014, accounting for 10.2% of the state budget. Total healthcare expenditure in 2014 was $477.5 million. The Ministry for Health oversees the sector and is responsible for setting the budget each year.
read articleInterview
Dr. João M. Carvalho Fumane, Director General , Hospital Central de Maputo (HCM)
TBY talks to Dr. João M. Carvalho Fumane, Director General of Hospital Central de Maputo (HCM), about the range of services on offer and what is being done to further excellence in the health sector
read articleInterview
Hon. Jorge Ferrão, Minister, Education and Human Development
<span style="line-height: 1.6em; background-color: initial;">TBY talks to Hon. Jorge Ferrão, Minister of Education and Human Development, on the goals of the ministry, the role of local languages, and tackling teacher absenteeism.</span>
read articleInterview
Prof. Doctor João Leopoldo da Costa, Rector, Instituto Superior de Ciências e Tecnologia de Moçambique (ISCTEM)
TBY talks to Prof. Doctor João Leopoldo da Costa, Rector of Instituto Superior de Ciências e Tecnologia de Moçambique (ISCTEM), on the perils of the internet on education and the quality of its high school.
read articleReview: Tourism
Mozambeach
With white-sand beaches, scuba diving, and game reserves among its wide range of accommodation, Mozambique is a goldmine for tourism. However, to attract the number of tourists the country is aiming for, and entitled to, it will have to compete with its considerably more popular neighbors.
read articleReview: Legal
Smart Choices
Foreign investments are sources of capital, foreign exchange, and technical know-how for developing countries such as Mozambique. Over the past three decades, Mozambique has been successfully striving to ensure a favorable legal framework for foreign private investment.
read article