Tourism sector exhibits steady growth

Namibia’s tourism sector exhibited resilience and steady growth in August this year, bolstered by a diverse mix of both regional and international visitors.

European tourists, in particular, were a driving force, with their share of international arrivals increasing to 70.28%, up from 66.33% in July 2024.

“According to the Hospitality Statistics Report for August by Simonis Storm, this upward trend underscores Namibia’s growing appeal as a leisure destination for European travellers, emphasizing the importance of tailored marketing strategies aimed at this key demographic.

It said that the continued dominance of holiday and leisure travel presents opportunities for further development in infrastructure to enhance the visitor experience and maintain the positive momentum.

However, the report said as a significant portion of Namibia’s top tourists now face new visa requirements, it is crucial for both the hospitality industry and the tourism ministry to streamline processes and provide exceptional services to ensure sustainable growth.

“With the festive season approaching, we anticipate an increase in domestic and SADC visitors, particularly in the northern and coastal regions, which are popular holiday destinations.”

The report said that leveraging this seasonal surge could further boost occupancy rates, thereby contributing positively to the economic impact of the hospitality sector.

It said that while the South African Rand has strengthened by nearly 7% against the US$ and 5% against the Euro this year, potentially making travel to Namibia more expensive for international tourists, it observed a growing trend in the sector toward targeting wealthier tourists.

“The rise of luxury lodges and exclusive experiences has positioned Namibia as a premium destination, which may limit the impact of exchange rate fluctuations on high-income travellers”

This shift in focus suggests that, while currency movements may affect some segments of the market, the demand for luxury tourism is likely to remain robust, the report said.

Breakdown

The national occupancy rate in the hospitality sector decreased to 63% in August, down from 68.9% in August last year.

However on a month-to-month basis, the sector experienced an improvement of 3.28% from July to August this year.

The northern region recorded its highest occupancy rate for the year at 70.42%, which can be attributed to the heightened wedding-related activities.

It said this includes both hosting and attendance which is typical for this period.

“In contrast, the southern and central regions saw declines with occupancy rates dropping to 56.63 and 51.88%, respectively.”

According to the report, the coastal region also recorded a slight year-on-year decrease to 66.22%, yet it experienced a 6.4% month-on-month increase from July’s figure of 59.8%.

Meanwhile leisure travel remained the dominant segment in August this year, accounting for 92.91% of total room occupancy.

“Business travel saw a year-on-year increase, contributing 6.48%, while conference-related stays, though still minimal, rose to 0.61% compared to the previous August.”

The report said that despite these gains, business and conference travel continue to play a minor role in comparison to the substantial share of leisure travellers.

Meanwhile local travel experienced a notable increase, with Namibian visitors accounting for 14.91% of total occupancy in August this year, up from 16.39% the previous month.

Conversely, South African tourist numbers almost halved, declining from 6.30% in July to 3.69% in August 2024.

Visitors from the rest of Africa saw a year-on-year increase, with their share rising to 1.67% from 0.90% in the previous year.

The Middle East saw a slight decline from 0.6% to 0.3% year-on-year, while Asia's share decreased from 2.0% to 1.69%. Similarly, South American visitors experienced a modest decline from 0.74% to 0.63%. North America, however, saw a marginal increase, rising from 3.65% in August 2023 to 3.68% in the current period. The 'rest of the world' category registered a sharp decrease from 5.21% to 0.55%.

The report said that European tourists continued to dominate Namibia's international visitor profile in August 2024, making up 70.28% of foreign arrivals, the highest percentage recorded this year.

Among the European countries, Austria, Germany, and Switzerland were the top contributors, collectively representing 31.68% of all European visitors. Italy demonstrated significant growth, with its market share rising sharply from 4.48% in July to 12.91% in August.

France ranked third, contributing 9.88% to the European segment, a rise from 6.33% year-on-year. Spanish and Portuguese arrivals also grew, from 3.35% in August 2023 to 3.73% in August 2024. Additionally, Namibia attracted attention from emerging markets such as the Baltic countries (Estonia, Latvia, and Lithuania).

The Benelux region (Belgium, Netherlands, and Luxembourg) posted impressive year-on-year growth, with their market share increasing from 0.07% to 6.20% in August 2024. These developments underscore the increasing significance of European tourism to Namibia's hospitality industry.

PREMIUM: The rise of luxury lodges and exclusive experiences has positioned Namibia as a premium destination. Photo: FILE