Namibia’s national hotel occupancy rate surged by nearly seven percentage points to 58.1% in April 2024, exceeding pre-pandemic levels recorded in April 2019.
A report by Simonis Storm attributes this growth partly to an increase in conferences and events. According to the report, conferences like the international energy conference held in April played a key role in filling hotel rooms.
Additionally, the expansion of daily flights between Windhoek and Lüderitz by FlyNamibia is facilitating easier business travel within the country.
While conference participants themselves made up a small portion (0.4%) of overall occupancy, their presence significantly impacted hotel room availability.
There was a notable increase in business travellers, making up 13.3% of all visitors in Namibia, more than double the number seen in March 2024 and April 2023 (6.5% each).
However, it’s worth noting that business tourism hasn’t quite fully recovered yet, as pre-pandemic levels in 2019 reached 13.5%.
“This is the highest monthly occupancy rate recorded for 2024 so far. On a monthly basis, the national occupancy rate increased by 8.95%, rising from 49.2% in March 2024. The YTD average occupancy rate for 2024 is 45.2%, higher than the pre-pandemic average of 44.0% in 2019,” the report reads.
The report further notes that all regions within Namibia saw increases in occupancy rates, with central areas experiencing the strongest performance at 66.8%.
“All areas experienced a rise in occupancy rates in April 2024 compared to both the previous month and the same period last year. Northern Namibia saw the lowest occupancy rate at 52.5%, though this was an increase from 45.8% in the previous month. Central areas had the highest occupancy rate at 66.8%, followed by coastal areas at 63.0%, and southern areas at 56.8%,” it says.
While leisure tourism remains the dominant force, attracting 86.4% of visitors in April, this sector primarily focuses on the northern regions.
As in previous years, a large portion of tourists came from Germany, Austria, and Switzerland, totalling 38%. Local tourism saw a decrease, with occupancy rates dropping from 27.1% in March to 19.1% in April.
“Visitors from France made up 8.0% of tourists, and those from South Africa comprised 6.9%. The substantial influx of tourists from Germany, Austria, and Switzerland can be attributed to direct flights from Frankfurt to Windhoek and a favorable exchange rate that enhances their spending power,” the report says.
The report also points to some challenges remaining despite the positive developments, the hospitality sector is grappling with inflation, with prices for hotels, cafes, and restaurants experiencing a significant rise.
“In April 2024, the inflation rate for hotels, cafes and restaurants in Namibia surged to 8.2%y/y, up from 5.3% y/y the previous year. This increase is largely driven by an increase in accommodation services, which saw an inflation rate of 10.1% y/y in April 2024, the highest since December 2022,” the report says.
Meanwhile, holiday package prices, though showing improvement, are still considerably high, dropping from a staggering 73.6% annual inflation to 45.5%. This translates to higher costs for locals looking to vacation within Namibia, potentially limiting their travel and spending.
It is reported that even though travel packages are discounted, they remain expensive, suggesting these inflationary pressures are still hindering domestic tourism activities.
