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Namibians to pay higher prices for holidays

By December 15, 2022 2203 0
Namibians to pay higher prices for holidays

Namibians planning to travel should be prepared to pay higher prices for their holidays, with the average lodge in the country found to have increased their room price per person per night by 13.4%, the average game drive price by 10% per person and campsite prices have increased by 13.4% per person per night on average by December 2022, compared to December 2021.

“This could limit domestic tourism in the upcoming festive season. And with less foreigners expected to visit Namibia (as it is off peak season), occupancy rates could remain stagnant or increase only marginally this festive season,” Simonis Storm Economist Theo Klein said.

“Year to date, the Hotels and restaurants category in our consumer price basket has recorded 9.6% in annual inflation on average, compared to a long run average of 6.3%. This category has become the second largest contributor to the change in annual inflation in recent months, implying that Namibians travelling throughout the country will pay higher prices for their holiday.”

Klein forecasts that Namibians will cut back on travel due to the increased economic pressures.

“We expect Namibians to cut back on their travel spending or opt for special deals where possible, given the significant increase in cost of living throughout 2022. We therefore expect occupancy rates for December 2022 to be stagnant or only slightly improved. 

“However, on an annual basis, tourism would have contributed positively to economic activity and so GDP growth for 2022. Despite official proxies for tourism (i.e. hotels and restaurants) still showing weak signs of recovery, we believe that the positive impact of tourism is not fully accounted for in the data and would have benefited other sectors of our economy as well,” he said.

This comes as the proportion of Namibian guests at local hospitality establishments increased since Namibia’s peak tourist season came to an end in September.

“Namibian guests accounted for 25.3% of all guests nationwide in November 2022, a further increase from 16.0% recorded in the prior month,” Klein said.

The country recorded a national occupancy rate of 45.8% during November 2022, compared to 54.6% in the prior month and 35.1% in November 2021 according to the Hospitality Association of Namibia.

“YTD, the national occupancy rate averages 40.3%, compared to 23.5% in 2021 and 15.6% in 2020 for the same period (January to November). Although occupancy rates are declining for the last two months – as Namibia’s peak tourist season has ended – occupancy rates at nationwide hospitality establishments improved from levels observed for 2020 and 2021.”

 

 

 

 

 

 

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Last modified on Thursday, 15 December 2022 19:01
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