Namibia’s tourism sector is expected to provide support to overall economic growth in 2022 following a recent rise in national occupancy rates and foreign arrivals, which are creeping closer to pre-pandemic levels, Simonis Storm has said.
In its latest quarterly gross domestic figures analysis, Simonis Storm noted that the hotels and restaurant sector expanded by 4,4% y/y in the first quarter of 2022.
At the same time, a national occupancy rate of 32.1% was recorded during June 2022, compared to 39.4% in the prior month and 16.7% in June 2021 according to information provided by the Hospitality Association of Namibia (HAN).
Year-to-date, the national occupancy rate averages 29.6%, compared to 21.5% for the same period in 2021, showing an improvement in tourist inflows.
Provisional bookings across most hospitality establishments indicate that Namibia’s high tourism season (July to September) should see much improved levels compared to 2021, according to HAN.
The association further says the proportion of Namibian visitors at local establishments increased slightly from 30.6% of guests in May 2022 to 34.0% in June 2022.
“From the foreign visitors, most guests in June 2022 came from Germany, Switzerland and Austria (27.1%), South Africa (12.8%), France (5.8%) and the US and Canada (3.7%) during June,” it said.
At least 92.3% tourists came to Namibia for leisure, 5.0% for business and 2.7% for conferences.
“Hospitality establishments in the central area recorded the highest occupancy rate (39.3%), followed by the coastal area (33.5%), southern area (31.8%) and northern area (27.6%) in June,” said HAN.
Covid regulations in Namibia’s top tourist markets have reduced significantly in recent months, with Germany, the UK and Switzerland considered less stringent than Namibia.
The virus has become something countries have learnt to live with and shows continued potential for Namibia’s tourist arrivals to rise further, Simonis said.
Less disruptions caused by Covid regulations will not only benefit the tourism sector, but general business activity as well.
The analysts believe the risks to the country’s positive view on tourism stem from external sources.
Thousands of flight cancellations and delays have occurred in the US due to staff shortages, particularly shortages in pilots according to the Transportation Security Administration (TSA).
There is a backlog in companies retraining pilots who were on furlough causing the shortage according to Bloomberg.
Across Europe, thousands of flight cancellations occurred as a result of shortages in airport staff in addition to airline staff. Italy, France, Portugal and Belgium face potential staff strikes for better pay. In Britain, many laid-off workers left the industry or retired altogether according to The Economist magazine.
This most likely arose as lockdowns exposed vulnerabilities and job security risks in this sector.
Dysfunctional airports in Namibia’s top tourist markets might limit the number of flights to Namibia, limiting tourist inflows until the situation can be resolved. Despite the increase in travelling costs, the weaker rand exchange rate should entice travellers to visit Namibia.
The proportion of Namibian visitors at local establishments increased slightly from 30.6% of guests in May 2022 to 34.0% in June 2022.
From the foreign visitors, most guests in June 2022 came from Germany, Switzerland and Austria (27.1%), South Africa (12.8%), France (5.8%) and the US and Canada (3.7%). Regarding the purpose of travel into Namibia, 92.3% came for leisure, 5.0% for business and 2.7% for conferences. Hospitality establishments in the central area recorded the highest occupancy rate (39.3%), followed by the coastal area (33.5%), southern area (31.8%) and northern area (27.6%) in June 2022.
During 1Q2022, Namibia had a total of 27,862 foreign arrivals, with 12.9% visiting Namibia for business or conference purposes according to the Ministry of Environment, Forestry and Tourism.
According to HAN CEO Gitta Paetzold, Namibia is a prime destination for the Meetings, Incentives, Conferences and Exhibitions (MICE) market.
“We do hold capacity for conference and exhibitions, especially in Windhoek and Swakopmund, with average sized conference facilities,” she said.
