…as hospitality industry continues steady recover and growth
In the first month of the year, coastal regions emerged as the most sought-after holiday destinations, boasting an occupancy rate standing at 55.39% above pre-Covid levels, the highest among all regions.
According to Simonis Storm, this improved activity can be attributed to the preference of many individuals choosing to celebrate their New Year’s festivities in coastal areas.
“Additionally, this trend aligns with the pattern of individuals opting to vacation after the festive season, likely due to reduced crowding during this period and a corresponding drop in holiday accommodation rates,” said Simonis Storm.
Following coastal regions were central areas with a 47.1% occupancy rate, southern areas with 33.8%, and northern areas with 29.8%.
In January 2024, occupancy rates at hospitality establishments nationwide remained higher than those before the pandemic, though they were slightly below the levels seen in January 2023. Particularly, the room occupancy rates at nationwide establishments were at 36.8% in January 2024, compared to 39.0% in December 2023 and 37.1% in January 2023.
Nationwide, approximately 92.3% of establishments were occupied for leisure purposes in January, a decrease from 96.7% in December 2023. Business-related occupancy rose to 7.7% (from 3.2% in December 2023), with central areas being the preferred destination. Conference-related occupancy, however, dropped to 0.02% from 0.13% in December 2023, with central areas remaining the main destination.
In January 2024, the percentage of Namibians visiting hospitality establishments fell to 24.9%, down from 33.0% in December 2023 and 29.6% in January 2023. This decline is consistent with the usual post-holiday normalization of travel. A significant portion of visitors came from German-speaking countries, as well as France and Italy.
Specifically, visitors from Germany, Switzerland, and Austria made up 35.2%, an increase from 27.3% in December 2023 and 31.6% in January 2023. Other sources of visitors included South Africa at 8.0%, the USA and Canada at 3.2%, France at 3.3%, Benelux at 4.1%, the UK and Ireland at 3.0%, Asia at 2.2%, and other European countries at 4.5%. Visitors from the remaining countries each contributed less than two percent to the total visitor share.
In 2023, the overall number of passengers arriving and departing on international, regional, and domestic flights reached its highest point since 2019. Specifically, the total number of passengers arriving was 514,533, while the total number of departures was 499,398. The majority of this passenger traffic was recorded at Hosea Kutako International Airport (HKIA), with Walvis Bay Airport and Eros Airport following in terms of activity.
We maintain confidence that tourism could potentially be one of the strongest performing sectors of the Namibian economy in 2024. Although business and conference tourism still lag behind 2019 levels, there is potential for significant growth, especially as certain hospitality establishments are poised to accommodate guests attending events such as The Africa Hospitality Investment Forum (AHIF) and the AviaDev Africa event,” said Simonis Storm.
From a global perspective, international tourism has nearly fully bounced back from the unprecedented impact of COVID-19. With many destinations either meeting or surpassing pre-pandemic arrival and revenue figures according to the latest United Nations World Tourism Organization (UNWTO).
By the end of 2024, it is projected that international tourism will rebound to nearly 90% of its pre-pandemic levels. In 2023, international tourism saw a substantial recovery, reaching 88% of its pre-pandemic levels, driven by robust pent-up demand.
The Middle East emerged as the leading region in terms of recovery, surpassing pre-pandemic levels by 22%. Europe, Africa, and the Americas reached 94%, 96%, and 90% of pre-pandemic levels, respectively. Asia and the Pacific region achieved 65% of pre-pandemic levels, showing a gradual recovery since the beginning of 2023. Notably, four subregions— North Africa, Central America (both +5%), Southern Mediterranean Europe, and the Caribbean (both +1%)—exceeded pre-pandemic levels in 2023.