Reducing economic leakages from tourism: A value chain assessment of the tourism industry in Kasane,Botswana

Retaining revenue generated by tourism within a local economy is an important issue in tourism development, especially in developing countries where tourism is used as a tool for development. This research aims to quantify the value and proportion of tourism expenditure retained in this destination in order to inform national-level decision-making. It applies a value chain analysis (VCA) approach through semi-structured questionnaires with 117 stakeholders in Kasane, Botswana. The VCA demonstrates that the total gross revenue generation of the tourism industry within Kasane was USD 39.5 million in 2014. Excursions and transport generated nearly half of this revenue (USD 19.2 million; 49%), followed by accommodation and food and beverages, at around USD 10?million each (26%). Of the gross revenue accrued, USD 14.5?million (37%) remained in the local economy (defined by the Botswana Tourism Organisation as a 50?km radius surrounding Kasane) in the form of local goods (production) and services (wages). Recommendations for interventions that could enhance the local retention of revenue from tourism in Kasane are presented.