An Empirical Analysis of the Impacts of Vegetable Imports Ban on the Botswana Tourism and Hospitality Sector

Abstract

The study uses the Measure of Aggregate Trade Restrictions (MATR) to assess how trade-restrictive policies affect economic growth and the flow of regional agricultural goods and services in developing countries, with particular reference to Botswana. While trade liberalisation is believed to have economic welfare gains, non-tariff trade barriers such as import bans are often preferred by small states to protect their infant industries and growing strategic economic sectors. Botswana introduced a two-year import ban on 16 vegetables to reduce the country’s BWP 7.8 billion annual food bill and capacitate its fragile horticultural sector in preparation for accessing the African Continental Free Trade Area (AfCFTA) market. The economic impact of the vegetable ban on Botswana’s tourism and hospitality sector, the second contributor to the country’s Gross Domestic Product (GDP), has not been empirically assessed. This study collects data from a sample of 50 main restaurants and hotels nationwide to evaluate the short and long-term welfare gains/losses from the ban. The study’s findings offer policy advice on how the country can develop a competitive horticultural and tourism, and hospitality sectors to benefit from the AfCFTA.