Business Reporter
TOURIST arrivals have surged to their highest point in the past five years, with a total of 49,190 arrivals recorded in August 2023, reflecting a robust annual growth rate of 16.8%.
This was revealed by the local wealth management firm Simonis Storm Securities, which said that the tourism sector has achieved its most robust quarterly occupancy average since Q3 2018. Angelique Bock, an economic researcher at Simonis Storm, stated that while domestic monetary circulation remains subdued among citizens, the influx of tourists is effectively bolstering the demand for local retailers. She added that the domestic retail landscape will exert a positive impact on the overall economic performance, particularly in 3Q2023 GDP.
According to our latest Quarterly Economic Review of 3Q2023, tourism is expected to be one of the positive contributors. Bock added that the occupancy rate in September 2023 registered at 65.5%, marking a modest decline of 3.4 percentage points from the preceding month, yet still maintaining a favourable trajectory in the broader economic context.
According to the Hospitality Association of Namibia (HAN), leisure travel continues to maintain a dominant position in driving occupancy rates at accommodation establishments.
“There are discernible signs indicating a gradual upturn in the demand for business and conference-related packages, as reported by select hotels. The tourism sector stands poised to reap substantial benefits from this pronounced influx of tourists. This upturn is primarily attributable to the increased number of international arrivals, and these international visitors are demonstrating a consistent trend of exploring various destinations within the country. Many of these travellers are drawn to the scenic offerings of southern Africa, leading to an upswing in regional arrivals,” Bock said.
She further added that when examining the annual data, they observed a substantial 16.9% increase in arrivals at Namibian airports in August 2023, propelled by noteworthy growth in international arrivals (up 20.1% year-on-year), regional arrivals (up 11.6% year-on-year), and domestic arrivals (up 19.8% year-on-year).
“For the second month in a row, the northern region had the highest occupancy rate at 68.9%. The central area followed closely with a rate of 66.3%, and the southern region recorded a rate of 63.9%. Meanwhile, the coastal area had the lowest occupancy rate at 57.8%. These figures illustrate the differences in tourism demand across these regions, with the northern and central areas being the most popular among tourists,” Bock said.
She added that an initial forecast for 2024 suggests a promising outlook for the group travel market, with advance bookings in this sector indicating positive prospects.
“As Namibia transitions into the tourism shoulder season, it is anticipated that concentrated efforts will be made in terms of robust marketing initiatives targeting international and regional markets. Concurrently, stakeholders, service providers, and property and infrastructure owners are expected to capitalize on this period for maintenance, skills enhancement, and product optimization. These collective efforts are aimed at ensuring that Namibia sustains the momentum of a burgeoning and dynamic tourism industry,” Bock said.
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