Holiday makers are expected to pay more in the coming months amid indications that local hospitality establishments may increase their charges to cater for rising cost pressures, research firm Simonis Storm has warned.
“Higher food, fuel and utility costs will weigh on profit margins and could potentially lead to higher room rates,” said Theo Klein, an economist with Simonis Storm.
This was after the investment firm had noted that hotels in Namibia are 23% more expensive than in Cape Town or Johannesburg.
“Cost pressures will make Namibia even more expensive compared to South Africa, hence much marketing of the country is needed to persuade tourists to visit Namibia,” he said.
The latest forecast comes as Namibian visitors at local establishments continue to decline, with locals making up only 43.7% during March 2022 according to latest figures from the Hospitality Association of Namibia (HAN).
“Most visitors came from Germany, Switzerland and Austria (27.9%), South Africa (12.0%), France (3.6%) and Benelux (2.04%) during March 2022. Both hotels below and above 30 rooms recorded the highest occupancy rates in March 2022 at 45.3% and 39.1% respectively, followed by bed & breakfasts (39.0%), tented camps (28.6%), lodges (23.6%), guest farms (23.4%), guesthouses (19.1%), and rest camps (15.4%),” he said.
The Namibia Tourism Board recently called for reforms in the existing charging system for local hospitality establishment from the current per person rate to room rate to make it more affordable for local travellers.
A national occupancy rate of 28.6% recorded during March 2022, was, however, higher compared to 20.1% in March 2021 and 25.4% in March 2020.
“This is the highest national occupancy rate since December 2021, but far below pre-pandemic levels,” Klein said.
“Namibia’s high season (starting in July) is fast approaching and numerous establishments allude to bookings being full in the upcoming months.”
Regarding the purpose of travel into Namibia, 88% of travellers according to HAN figures came for leisure, 6.6% for business and 5.4% for conferences.
“Hospitality establishments in the coastal area recorded the highest occupancy rate (41.3%), followed by the central area (39.4%), southern area (27.9%) and northern area (18.2%) in March 2022. The Easter weekend has likely boosted occupancy levels in the coastal area during the month under review,” he said.
