Namibia’s hospitality sector’s hotel occupancies closed May 2023 at 50.8%, as the sector makes steady progress in recovery, latest statistics show.
According to data released by Simonis Storm Research, the occupancy rate across nationwide hospitality establishments when compared to May 2022, increased 11.4 percentage points, reflecting the sector’s ongoing recovery efforts.
But when compared to the prior month, the 50.8% in occupancy is a minor decrease of a percentage point from the previous month’s figure of 51.8%.
“Analysing the regional variations, the coastal area of Namibia experienced a decline in occupancy rates, dropping from last month’s high of 58.1% to 44.2%. In contrast, the central area witnessed the highest occupancy rate in May 2023, reaching 54.9%. The northern and southern areas recorded rates of 52.1% and 48.5%, respectively,” Simonis Storm Researcher Angelique Bock.
Meanwhile, business visitors constituted a larger share of occupancy rates in May, accounting for 9.52% of all visitors.
“This represents a significant increase of 7.8 percentage points compared to the previous month. Leisure visitors remained the dominant force in tourism, comprising 89.6% of total visitors, while conference attendees made up 0.9%,” states Bock.
She highlighted that Europeans continue to be the largest group of visitors, contributing to 55% of all visits to hospitality establishments across the country.
“Among European visitors, the majority came from Germany, Austria, and Switzerland, comprising 30.9% of total visitors. Local visitors accounted for 22.8%, followed by South Africans (8.3%) and the French (8.4%). The recovery in tourist inflows from Europe is particularly notable, with German, Austrian, and Swiss tourists surpassing pre-pandemic occupancy rates,” she explains.
The Research firm notes that in terms of inflation, the accommodation services and catering sectors in Namibia showed a moderation in May 2023.
This comes as both categories experienced an annual increase of 6.7%, a contrast to the higher inflation rates recorded a year ago.
“Inflationary pressures on accommodation services rose in recent months due to factors such as increased food, electricity, and fuel prices. Travel expenses for Namibians have surged, with prices nearly doubling compared to the same period in the previous year,” Bock said.
Furthermore, tourist inflows to Namibia have shown signs of improvement, reaching 68% of pre-pandemic levels after a notable increase of 34.2% in arrivals in April 2023, departures experienced a significant decrease of 25.6% during the same month.
Despite this, the overall net increase in total passengers indicates a positive trend in arrivals, which bodes well for the local tourism industry.
Looking ahead, the Ministry of Environment, Forestry, and Tourism’s Tourism Recovery Plan for 2022 to 2024 focuses on strategic interventions such as policy revisions, online marketing campaigns, attracting new tourist markets, enhancing market intelligence, and improving accessibility and connectivity.
Bock said efforts to expand the visa regime, revise the National Tourism Policy, and target markets in North America, Eastern Europe, Scandinavian countries, and Africa are underway.
As a result, the ongoing recovery in Namibia’s hospitality sector is expected to drive economic growth, job creation, and support complementary industries throughout 2023.
