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M207 million to boost tourism

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Staff Reporter

Lesotho is making an ambitious push to revitalise its tourism sector as a cornerstone of economic recovery, with the government announcing a substantial M207.2 million budget allocation and plans to establish special economic zones (SEZs) dedicated to tourism development.

Finance and Development Planning Minister Dr Retšelisitsoe Matlanyane unveiled these initiatives during the 2025/26 budget speech, presenting tourism as a vital alternative to the nation’s struggling traditional economic pillars.

The announcement comes as Lesotho grapples with a five percent contraction in its mining sector and challenges in manufacturing.

“The development of tourism special economic zones is a key strategy for us,” Dr Matlanyane said.

“We believe that by creating attractive environments for investors, we can accelerate the growth of our tourism sector and, by extension, our economy.”

The government’s comprehensive Tourism Sectoral Strategy aims to identify niche markets, address sector challenges, and improve overall growth.

A significant focus will be placed on developing tourism infrastructure, including hotels and eco-lodges, with the potential to create thousands of local jobs.

In a targeted approach to regional development, the government will introduce grading and accreditation programs in Mokhotlong and Botha-Bothe districts, capitalising on increasing tourist traffic through the Sani Pass border.

The initiative includes plans to nominate the Heritage Route from Botha-Bothe to Thaba-Bosiu for recognition, along with cultural elements such as the Basotho Hat and Mokhibo, for UNESCO’s Intangible Cultural Heritage list.

The strategy also addresses the creative and cultural sectors’ role in tourism growth. New measures will be implemented to protect artists’ rights and ensure fair compensation through improved licensing of copyright music tariffs and royalty collection systems.

The government plans to review its 2005 Cultural Policy to strengthen cultural preservation efforts.

Supporting these initiatives, the government has announced plans to refurbish the Setsoto Stadium and implement a Physical Education program at the National University of Lesotho in the 2025/26 academic year, recognising sports as an additional draw for tourism.

These comprehensive measures reflect Lesotho’s determination to transform its tourism sector into a reliable economic driver, leveraging the country’s natural beauty and rich cultural heritage to create sustainable growth opportunities.

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