Mozambique sees $2 bln in tourism investment

Tuesday, 27 July 2010

Mozambique expects investment in its fast-growing tourism sector to jump five-fold to $2 billion in the next several years, the southern African nation's tourism minister told Reuters on Tuesday.

Due to its natural beauty Mozambique's tourism industry is booming

Mozambique is one of the fastest growing economies on the world's poorest continent and aims to draw more tourists to the unspoilt beaches and diving spots along its Indian Ocean coast.

"With our anchor (tourism) projects that we approved recently... we are talking about $2 billion of investment over a period of five to seven years," Minister of Tourism, Fernando Sumbana, told Reuters on the sidelines of an African hotel investment conference.

Sumbana said Mozambique has currently approved $400 new hotel and resort deals, with construction on some buildings already started.

Many of the investors are from neighbouring South Africa, with others from China, Kuwait, the United Arab Emirates and Europe, he said.

Mozambique is rebuilding after a devastating civil war, and its economy is expected to grow around 7 percent in 2010, according to the International Monetary Fund.

Mozambique's tourism sector, traditionally centred around capital Maputo, is now expanding to cities such as Pemba and Beira and is likely to play an increasing role in the country's economic growth, he said.

"Tourism currently contributes 2.5 percent to GDP (gross domestic product) and we are saying by 2025 we would like to see a figure of 6 to 7 percent. Tourism has the potential to be a key driver," he said.

Sumbana said the number of tourists visiting has jumped to about 3.1 million in 2009 from about 250,000 in 2000.

Reuters