Travellers planning to visit Malawi in 2026 should be aware of significant economic and policy changes designed to impact their travel budgets and payment methods. These measures, implemented to address the country’s foreign currency shortages and ensure compliance with updated fiscal policies, include a Value Added Tax (VAT) increase and a new requirement for foreign visitors to pay for accommodation in hard currency.

Effective from January 1, 2026, Malawi has adjusted its standard VAT rate from 16.5% to 17.5%. This modest increase will affect various tourism-related services, such as hotels, lodges, safaris, guided tours, transport, and restaurant meals. While the impact on individual expenses is relatively small, visitors should factor this into their overall budget planning. This higher VAT rate is part of the government's broader efforts to boost national revenue while striving to maintain the quality of services offered to international visitors.

In a crucial move to combat its ongoing foreign currency shortage, Malawi now mandates that foreign visitors pay for accommodation in hard currency. This regulation applies to all hotels, safari lodges, and camps throughout the country. Accepted currencies for these payments include US Dollars (USD), Euros (EUR), and British Pounds (GBP). Although many properties in Malawi already priced their services in USD, this new rule formalises the practice, ensuring that vital tourism revenue directly contributes to the country’s official reserves. The government recognises tourism as a critical source of hard currency and has enacted this measure to bolster its economic position and strengthen financial resilience.

To ensure a smooth and enjoyable experience, travellers visiting Malawi in 2026 should prepare accordingly. For accommodation payments, visitors should expect prices to be quoted and charged in USD, EUR, or GBP. International credit cards are increasingly accepted at hotels and lodges, facilitating compliance with the new payment requirements. However, it is advisable to carry some foreign currency cash as a backup, particularly for remote areas where card acceptance might be limited or technical issues could arise. For daily expenses such as restaurant meals, local transportation, market purchases, and tips, visitors can use the local currency, Malawi Kwacha (MWK). This dual-currency approach allows travellers to manage their spending efficiently while supporting local businesses.

Due to the VAT increase, travellers should also adjust their budgets for slightly higher costs across tourism services, especially for activities like safaris, guided tours, and dining. It is highly recommended that visitors confirm payment methods with their accommodation providers in advance to avoid any inconvenience upon arrival. Bringing a mix of cash and cards will offer greater flexibility and help ensure all expenses can be covered without difficulty.

These policy changes present both challenges and opportunities for African tourism stakeholders. The requirement for foreign currency payments underscores Malawi's position as a premium destination for international travellers. Tour operators and travel professionals can leverage this by offering tailored packages that highlight the country’s unique attractions, including the stunning Lake Malawi, diverse wildlife safaris, and rich cultural experiences. Furthermore, the VAT increase may encourage businesses to enhance service quality, fostering a more competitive and rewarding environment for visitors. By staying well-informed, African tourism professionals can effectively advise their clients and promote Malawi as a must-visit destination in Southern Africa.

Despite these adjustments, Malawi maintains its appeal as an accessible and rewarding destination for travellers seeking authentic experiences. With its captivating shores of Lake Malawi and the diverse wildlife of its national parks, the country offers a wealth of attractions. With proper planning and an understanding of the new policies, travellers can anticipate a seamless and memorable journey in this beautiful part of Africa.