Muhammad Abdullah, executive director of Cotur — arguably Mozambique’s most representative travel agency — has warned that rising fuel prices could undermine the recovery and growth of tourism in Mozambique, by driving up mobility costs and compressing the sector’s entire value chain.
The tourism sector is tracking the trajectory of fuel prices with growing concern, as successive price adjustments continue to weigh on transport and operating costs for businesses. Although the government recently acknowledged the possibility of a price reduction should tensions in the Middle East ease and international markets stabilise, industry operators warn that the current environment is already producing tangible impacts on tourism activity.
In an interview with Diário Económico, Abdullah said the increase in fuel prices represents one of the most pressing challenges currently facing the sector. “The rise in fuel costs is, without doubt, one of the biggest concerns for the sector right now. Tourism is heavily dependent on mobility: air, land and maritime transport, transfers, excursions, hotel logistics and supply chains. When fuel prices rise, 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 most likely to constrain the competitiveness and growth of tourism in Mozambique.”
Abdullah acknowledged that the additional costs could be passed on to tourists, given that businesses have a limited capacity to absorb successive price increases.
“That is likely. Companies may try to absorb part of the costs, but when increases are significant and prolonged, a portion inevitably ends up being reflected in final prices. This can happen in airfares, transfers, tour packages, excursions and even hotel services,” he said.
Abdullah also cautioned that there is a risk some tourist destinations could lose their appeal, particularly those that rely on longer overland journeys or more expensive air connections. “Mozambique has extraordinary destinations, but many of them require complex logistics. If the cost of access rises too much, some tourists may opt for competing destinations that are easier or cheaper to reach.”
In his broader assessment, Abdullah stressed that tourism is a cross-cutting sector whose difficulties reverberate well beyond hotels and travel agencies. “When demand falls, the impact is not limited to hotels or travel agencies. It affects transporters, guides, restaurants, suppliers, artisans, local communities and small businesses. If costs continue to rise, there could be lower profitability, reduced investment, pressure on jobs and a diminished contribution from tourism to the national economy.”
Asked about the outlook for 2026, Abdullah said: “It could be affected. Mozambican tourism has enormous potential and was on a trajectory of recovery and growth, but rising fuel costs could slow that momentum. The concern has already been publicly acknowledged at the sector level, precisely because the cost of mobility is central to tourism activity.”
The Cotur executive director also cautioned that higher domestic costs could erode the country’s competitive positioning. “Mozambique has very strong advantages: unique beaches, culture, nature, gastronomy, hospitality and a strategic location. But it competes with countries that have greater air connectivity, more developed tourism infrastructure and, in some cases, more predictable logistics costs. If domestic costs rise too sharply, Mozambique risks losing competitiveness — not for lack of beauty or potential, but because access and operations become too expensive.”
To mitigate the impact, Abdullah called for targeted government support measures for the sector, including temporary incentives for formal tourism businesses, improved air connectivity, reduced operating costs, streamlined visa processes and stronger international promotion efforts. “The government could view 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 visas, strengthen international promotion and support mobility to priority destinations. Tourism generates foreign exchange, employment and a positive image for the country — it should be protected.”
Despite the challenges, Abdullah maintained a cautiously optimistic outlook for Mozambican tourism, while underscoring the need for coordinated action between the public and private sectors. “If the trend continues, the sector will have to operate in a more difficult environment. Prices may rise, margins may fall and some destinations may face greater pressure. Even so, I remain optimistic about the future of Mozambican tourism. The country’s potential is enormous, but it will require strategic action, coordination and a genuine sense of urgency.”
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/07/10/negocios/turismo/muhammad-abdullah-o-aumento-dos-combustiveis-podera-afectar-a-recuperacao-e-o-crescimento-do-turismo/
