July 2023 occupancy levels have been the best over the last five years, having surpassed July 2018’s occupancy rate by 0.12 percentage points, research firm, Simonis Storm has said.
The tourism peak season of 2023 is exhibiting robust performance, with July 2023 recording an occupancy rate of 61.0%, compared to 51.0% in July 2022.
“The month of July marks the commencement of peak season by demonstrating a steep uptick in occupancy rates for each year,” explained the firm.
Year to date (YTD), the average occupancy rate is 46.3% – 2.6 percentage points short of 2019’s average of 48.9%.
“This performance signals a continued and much needed recovery within the tourism sector. This should be positive for the 3Q2023 GDP results, as additional tourists translate to higher general consumer spending in the country and supports accommodation and tour operator businesses as well,” said Simonis Storm.
On average, occupancy rates in the different areas of Namibia have increased by 9.5 percentage points on an annual basis and 9.8 percentage points on a monthly basis. The southern area of Namibia recorded the lowest occupancy rate in July 2023 at 58.9%, from 50.7% in the prior month. This month, the central area had the highest occupancy rate of 62.7% (4.3 percentage points higher than the previous month), followed by the northern area at 62.5% (12.1 percentage points higher than the previous month) and the coastal area at 59.5% (8.8 percentage points lower than June 2023).
Germany, Switzerland and Austria accounted for the largest stake of Namibia’s occupants (33.5%), being the usual main tourist source market for Namibia. Locals are the second largest driver of visitors at nationwide hospitality establishments, accounting for 25.1% of occupants, followed by South Africans at 9.0% YTD.
The number of arrivals at Hosea Kutako International Airport (HKIA) are close to general pre-pandemic levels, primarily driven by international and regional arrivals. First half of 2023 underperformed compared to first half of 2018 (down 7.9%) and first half of 2019 (down 2.8%), but outperformed first half of 2017 (up 0.9%).
“This reinforces the point that the tourism sector has not yet recovered fully to pre-pandemic levels but is expected to do so by 2024. According to the latest data point we have (June 2023), HKIA received 16,472 international arrivals compared to 11,952 in June 2022 and 141 in June 2020.
“Namibia Airports Company (NAC) has reached breakeven point according to the preliminary results of FY2022/23, operating at about 78% of pre-pandemic levels. Construction of new terminal buildings at Katima Mulilo, Rundu and Luderitz is planned to meet current demand and improve services in anticipation of more arrivals due to mining activities in the North and oil, gas and green hydrogen activities in the South of Namibia. This should also benefit local construction companies, if locals are able to be awarded the job.”
Meanwhile, Namibia Wildlife Resorts (NWR) has noted its delight at the continuing good recovery of tourism occupancy numbers in the post-COVID era, signalling a positive trajectory for the industry.
In a significant achievement that underscores the resilience of Namibia’s tourism sector, this past weekend (18-20 August) saw NWR’s key resorts, including Halali, Okaukuejo, Olifantsrus, Namutoni, and Sesriem, achieving an impressive 100% occupancy rate.
Dr. Matthias Ngwangwama, Managing Director of NWR, expressed his deep satisfaction with the robust recovery the company has witnessed. He remarked, “We are thrilled to witness such a swift rebound in tourism. The dedication of our team, along with the enduring allure of Namibia’s natural wonders, has played a pivotal role in our rapid resurgence. We remain committed to upholding the highest standards of service and providing unforgettable experiences for our esteemed guests.”
NWR’s success story stands as an inspiration to the entire hospitality industry, highlighting the potential for recovery even in the face of unprecedented challenges.
Dr Ngwangwama emphasised the importance of collaboration among hospitality players to collectively enhance the quality of visitor experiences across the nation. “As the tourism industry rebuilds, we encourage all stakeholders to unite in delivering unparalleled hospitality. Our guests deserve nothing less than the best, and by working together, we can elevate Namibia’s reputation as a premier travel destination.”
As NWR continues to chart a path towards profitability and sustained growth, it remains committed to adhering to all health and safety protocols to ensure the well-being of both visitors and staff. The company’s efforts to provide a safe and enjoyable environment align with its overarching goal of making Namibia a beacon of responsible and sustainable tourism.