Tourism gains, Malawi’s competitiveness test

Key Business Points

• Malawi ranks 107th out of 110 in the 2026 World Economic Forum Travel and Tourism Development Index, staying among the world’s lowest performers. Expect limited inbound traffic until access and infrastructure improve.
• Tourism added K1.6 trillion to Malawi’s gross domestic product in 2025, up 23.3 percent from 2019. The sector can grow if investment and destination management strengthen.
• The World Bank says Malawi is losing $100 million, about K175 billion, in private tourism investment and 60,000 jobs due to weak concession frameworks. This opens space for policy reform and local partnerships.

Malawi holds the same 107th position it had in 2019, with a score of 3.08 out of seven, a 1.3 percent increase from 2024. The country remains among the world’s four lowest-performing destinations. Regional peers include South Africa at 61st, Tanzania at 74th, Botswana at 84th, Namibia at 90th, Zambia at 96th, and Zimbabwe at 101st.

WEF Managing Director Kiva Allgood said pressure on infrastructure, natural assets, and public services, along with rising accommodation, transport, and operating costs, is undermining tourism sustainability and affordability. She warned that investment in infrastructure has not kept pace and that unmanaged growth could strain the communities and assets on which long-term success depends. Stronger destination management is needed to protect natural resources.

World Travel and Tourism Council data shows tourism’s contribution to gross domestic product rose from K1.3 trillion in 2019 to K1.6 trillion in 2025. Innocent Kaliati, managing director of Orbis Destination Management Company, said the sector is recovering from Covid-19 but remains too inaccessible for international tourists and investors. He said the private sector can do only so much and that the government must help enable the environment to unlock international traffic.

The Ministry of Industrialisation, Business, Trade and Tourism is promoting regional and international meetings, incentives, conventions, and events over the next three years to expand tourism. Spokesperson Patrick Botha said this is among the opportunities government is pursuing.

The World Bank estimates Malawi loses $100 million, roughly K175 billion, in private tourism investment and 60,000 potential jobs because of weaknesses in the concession framework for high-value sites. This limits competitiveness and economic transformation.

Tourism is prioritised under Malawi 2063 for socio-economic development, job creation, and poverty reduction. Beyond gross domestic product and foreign exchange, the sector supports women, youth, and vulnerable groups while creating indirect economic gains. The sector also earns foreign exchange that helps stabilize the national currency and pay for imports.

For Malawi’s bisinesi community, tourism is a rising contributor to national wealth, but weak access, infrastructure gaps, and policy uncertainty are holding back zokambirana and investment. Local entrepreneurs should monitor government concessions, business events, and public-private partnerships for new supply chain and service opportunities. Business owners in hospitality, transport, and crafts should consider how improved site concessions and events could create demand for local supplies, guiding services, and accommodation. Early engagement with district councils and tourism boards may help small firms position for future contracts.

Source Link

What are your thoughts on this business development? Share your insights and remember to follow us on Facebook and Twitter for the latest Malawi business news and opportunities. Visit us daily for comprehensive coverage of Malawi’s business landscape.