Lake Malawi surging waters cause K6.3bn tourism infrastructure damages

Officials from the National Planning Commission (NPC) estimate that the rising water levels along Lake shore areas in Salima and Mangochi have destroyed tourism infrastructure worth K6.3 billion causing losses of K2.5 billions for various tourism entities.

This is a heavy blow to the tourism sector, which contributes a significant 6.7 percent to Malawi’s GDP.

Dr. Andrew Jamali, Research Manager at NPC presented the analysis at the Commission’s research dissemination dialogue, painting a vivid picture of the economic implications.

“The surge in water levels has crippled tourism services, leading to a substantial decline in revenue,” Dr. Jamali explained.

“Our estimates indicate a 0.5 percent contraction in the tourism sector’s contribution to GDP, translating to a 0.01percent decrease in national GDP.”

According to Jamali the findings estimate that damages of K6.3 billion and revenue losses of K2.5 billion have been accrued by hotel and lodge operators along the lake following the water overflows.

Dr. Jamali  emphasised the need for urgent interventions to prevent such damage to the tourism sector in future.

 “This is an opportunity for us to come together and find solutions. We need to establish a water management system, implement interventions to protect economic activities, and enforce laws to ensure sustainable development,” he said.

He stressed the need for collective action, stressing that welfare issues demanded the attention of multiple ministries.

“We must engage in open and honest discussions, involving the Ministers of Health, Government, Water, and State,” he urged.

“Infrastructure resilience and adherence to guidelines are paramount. We must balance water flow management to cater to tourism, energy production, and downstream livelihoods.

 “This is an opportunity for us to come together and find solutions. We need to establish a water management system, implement interventions to protect economic activities, and enforce laws to ensure sustainable development,” he said.

NPC’s Director of Knowledge and Learning Dr. Joseph Nagoli, said NPC conducted the study because of the importance of tourism to the realisation of the Malawi 2063 First 10-Year Implementation Plan (MIP-1).

The study was conducted in collaboration with the Malawi Tourism Council, the Department of Economic Planning and Development in the Ministry of Finance, the Department of Disaster Management Affairs and the National Statistical Office.