Muhammad Abdullah, Chief Executive Officer of Cotur, arguably Mozambique’s leading travel agency, believes that rising fuel prices could hamper the recovery and growth of the country’s tourism sector by increasing mobility costs across the entire tourism value chain.
Mozambique’s tourism sector is closely monitoring fuel price developments, as successive increases continue to drive up transport and operating costs for businesses. Although the Government recently acknowledged the possibility of a reduction in fuel prices should tensions in the Middle East ease and international markets stabilise, industry operators warn that the current price environment is already affecting tourism activity.
In an interview with Diário Económico, Cotur Chief Executive Officer Muhammad Abdullah said that higher fuel prices could undermine the recovery and growth of Mozambique’s tourism industry by increasing mobility costs throughout the sector’s value chain.
According to Abdullah, “The rise in fuel prices is undoubtedly one of the sector’s biggest concerns today. Tourism depends heavily on mobility: air, road and sea transport, transfers, excursions, hotel logistics and supply chains. When fuel prices increase, virtually the entire tourism value chain comes under pressure. I would not say it is the only threat, but it is certainly one of the factors that could most significantly affect the competitiveness and growth of tourism in Mozambique.”
He acknowledged that the additional costs are likely to be reflected in the prices paid by tourists, as companies have only limited capacity to absorb repeated increases.
“That is very likely. Businesses may try to absorb part of the additional costs, but when increases are substantial and prolonged, part of them inevitably ends up being passed on to consumers. This could affect airfares, transfers, travel packages, excursions and even hotel services.”
Muhammad Abdullah also warned that some tourist destinations could become less attractive, particularly those that depend on long overland journeys or more expensive air connections.
“Mozambique has extraordinary destinations, but many of them require complex logistics. If the cost of reaching them becomes too high, some tourists may choose competing destinations that are easier or less expensive to access.”
In his view, tourism is a cross-cutting industry.
“When demand declines, the impact is not limited to hotels or travel agencies. It also affects transport operators, tour guides, restaurants, suppliers, artisans, local communities and small businesses. If costs continue to rise, profitability could decline, investment may slow, jobs could come under pressure and tourism’s contribution to the national economy could weaken.”
“When fuel prices rise, virtually the entire tourism value chain comes under pressure.”
Muhammad Abdullah – Chief Executive Officer, Cotur
Asked about the outlook for 2026, Abdullah replied: “Yes, it could have an impact. Mozambique’s tourism sector has enormous potential and was on a clear path to recovery and growth, but rising fuel prices could slow that momentum. This concern has already been publicly acknowledged within the sector, precisely because the cost of mobility is fundamental to tourism.”
The Cotur CEO also warned that rising domestic costs could undermine the country’s competitiveness.
“Mozambique has many strong advantages: unique beaches, culture, nature, gastronomy, hospitality and a strategic location. However, it competes with countries that offer better air connectivity, more developed tourism infrastructure and, in some cases, more predictable logistics costs. If domestic costs rise excessively, Mozambique could lose competitiveness—not because it lacks beauty or potential, but because access and operations become more expensive.”
To mitigate these impacts, Abdullah advocates targeted support measures for the sector, including temporary incentives for formal tourism businesses, improved air connectivity, lower operating costs, easier visa procedures and stronger international marketing efforts.
“The Government should recognise tourism as a strategic export sector. It would be important to introduce temporary relief measures for formal tourism businesses, improve air connectivity, reduce operating costs, facilitate visa procedures, strengthen international promotion and support mobility to priority destinations. Tourism generates foreign exchange, creates jobs and enhances the country’s international image, so it deserves protection.”
Despite the challenges, Muhammad Abdullah remains optimistic about the future of Mozambique’s tourism industry, while stressing the need for coordinated action between the public and private sectors.
“If this trend continues, the sector will have to operate in a more challenging environment. Prices may increase, profit margins may narrow and some destinations may come under greater pressure. Even so, I remain optimistic about the future of Mozambican tourism. The country’s potential is enormous, but success will require strategy, coordination and a strong sense of urgency.”
Text: Cleusia Chirindza & Felisberto Ruco
