[{"bbox": [147, 153, 383, 185], "category": "Section-header", "text": "2 RATIONALE"}, {"bbox": [147, 220, 295, 246], "category": "Section-header", "text": "2.1 Context"}, {"bbox": [158, 264, 1073, 345], "category": "Text", "text": "At present, the country's political and macro stability and its economic recovery hang by a thread. The already unstable economic situation and unsustainable debt levels have been worsened by successive external shocks (COVID, tropical storms and soaring food and energy prices)."}, {"bbox": [158, 357, 1073, 463], "category": "Text", "text": "Low forex reserves translate into ever longer interruption in the supply of essential goods, such as fuel and medicines. Malawi's economy continues being over reliant on rain-fed and low-productivity agriculture, with a limited export base of raw materials such as tobacco (making up more than half of the export), tea and sugar."}, {"bbox": [158, 475, 1073, 608], "category": "Text", "text": "Government's efforts to debt restructuring and fiscal adjustment, including the downscaling of the agricultural input subsidy programme, are increasing the chances for IMF to open an Extended Credit Facility in the second quarter of 2023, and a consequent large Development Policy Operation of the World Bank. EU has recently announced its intentions to explore the possibility of resuming budget support."}, {"bbox": [158, 620, 1073, 701], "category": "Text", "text": "However, regardless of the external support in the pipeline, concerted efforts to reform the country's economy are urgently required to reverse Malawi's slow pace of structural transformation and stagnant growth performance."}, {"bbox": [158, 713, 1073, 819], "category": "Text", "text": "Not only Malawi will need a more productive and export-oriented agri-food sector, but it will also need to diversify its economy towards alternative sectors. The tourism industry, more specifically nature-based tourism (ecotourism), offers strong potential for diversification and job creation in rural areas and increase of foreign exchange earnings."}, {"bbox": [158, 831, 1073, 964], "category": "Text", "text": "Pre-COVID, the tourism sector represented, 6.7% of GDP and employed over 500 000 people. The industry saw steady growth prior to the pandemic with 978,327 international visitors in 2019 (Malawi NSO Inbound Tourism Arrivals 2020). Travel and gathering restriction measures hit hard the sector, reducing its contribution to GDP to 3.2% and losing 167,000 jobs (2020). However, the tourism industry is rebounding and is expected to overtake the pandemic figures."}, {"bbox": [158, 976, 1073, 1107], "category": "Text", "text": "From every crisis there is also opportunity to rebuild, and ecotourism has long been held as a major potential for Malawi's tourism industry. Lonely Planet named Malawi a top 10 country to visit in 2022, offering a wide variety of natural and cultural tourism opportunities in a relatively small area. International arrivals are expected to grow from 432,999 in 2021 to over a million visitors by 2024 (National Statistics Office)."}, {"bbox": [158, 1121, 1073, 1361], "category": "Text", "text": "The Action intends to support development of ecotourism in Malawi, making the country a preferred tourist destination on international markets, while using this as an opportunity for preservation of the country's natural and cultural heritage and for the socio-economic development of rural communities. It will support ecotourism products development and marketing, attraction of private sector investments, dialogue and coordination amongst ecotourism stakeholders and strengthening of the governance of the sector. The Action will empower local communities to participate in the local development agenda and as providers of ecotourism services and experiences, enhancing inclusive wealth creation and self-reliance. It will ultimately contribute to conservation and restoration of Protected Areas/Reserves whose ecologies show potential for development into ecotourism products."}, {"bbox": [158, 1373, 1073, 1581], "category": "Text", "text": "The Action is in line with Malawi 2063 priority area (pillar 3) of urbanisation and the enabler of environmental sustainability and private sector dynamism. Malawi 2063 prioritizes tourism amongst the sectors with growth potential for the country, and specifically recognizes the need to apply a sustainable ecosystem approach and empowerment of local communities when developing tourism resources and tourism hubs around secondary cities. The Action also resonates well with Malawi 2063 priority area of agricultural productivity and commercialisation, for it will promote development of preferential purchasing of local foods and will include gastronomy as part of the ecotourism offer."}, {"bbox": [977, 1681, 1080, 1705], "category": "Page-footer", "text": "Page 4 of 21"}]