For the second time in the last 24 years, Namibia Wildlife Resorts (NWR) recorded a profit in the 2022–23 financial year, signalling a transforming terrain for the parastatal that, before its first ever profit in 2019, had gone for nearly two decades without registering a profit.
This time, the latest financial statements show that NWR achieved a profit of N$46 million, which came a year ahead of the public enterprises’ earlier prediction of attaining a post-COVID-19 profit only this year.
This profit, which was propelled by a 32% revenue growth from N$294 million in 2022 to N$387 million, is also double that of the one achieved in 2019—NWR’s first ever profit—which totalled N$22 million.
Withstanding this, Amb. Haroldt /Urib Chairperson of the NWR Board provides the context in which profit is now being achieved, saying “long-term loans and statutory loans to financial development and commercial institutions, as well as tax authorities, which were long-standing challenges in the past, were fully settled in 2023, and the company attained a long-term debt-free status.”
He goes on to say, “We demonstrated that it is possible to achieve positive results in the public enterprise domain. With adequate support and commitment by all stakeholders, as well as requisite leadership and management, public enterprises can transform into good and ethical citizens by producing acceptable performance through, amongst others, prudent financial management and adherence to statutory compliance. Public enterprises can become catalysts for transforming and improving the lives of many of our citizens.”
His remarks lay the foundation for a determined entity that has channelled its energy towards a new birth in an industry that was almost totally collapsed by the COVID-19 pandemic.
Indeed, hospitality numbers have drastically improved in the past few years, but NWR’s success is due to its own innovative foundation and stable governance architecture.
From a finance perspective, the overall bottom line was reduced by 231%, and despite increasing inflation, fuel costs, and repo rates during the year under review, operational expenses, excluding reversals on penalties and interest payments on statutory payments and loans settled, increased only by 7%, mainly driven by increased spending on repairs, renovations, and maintenance of our facilities.
To that end, repairs and maintenance attracted N$27 million in the financial year, demonstrating the importance accorded to continuously maintaining its resorts and camps to improve customer experience and service delivery amid a growing stiff meeting.
“We continued to make good progress on our strategic value drivers of occupancy growth, revenue, expense management, profitability, and improvements on the balance sheet. We continue to invest in our capital infrastructure,” NWR Managing Director Matthias Ngwangwama says.
He goes on to add, “We aspire to fully harness our unique positioning as the only provider of tourism services located within the national parks and protected areas. NWR’s sharpened focus will be on the unique requirements of each segment of the Namibian tourist market, with each of the resorts in its portfolio distinctly positioned as Premier Lodges, Leisure Resorts, Conference and Events Resorts, and Camping Sites. A clear and distinct market positioning, product offering, and pricing approach will apply to each category, supported by a unique value proposition for each resort.”
AN INNOVATIVE APPROACH
During the 2022–23 financial year, NWR actively addressed an emerging challenge: the modernisation of its facilities.
“The importance of this undertaking was acknowledged in response to substantial feedback from our visitors, who expressed apprehensions regarding the visible effects of time on our facilities,” the company notes, acknowledging the contribution of stakeholders in leading the firm.
One of the key innovations introduced by NWR was to make a commitment to making travel more accessible and appealing to Namibians through targeted promotions, such as the Independence Specials. These promotions were tailored to celebrate national pride and the spirit of adventure among locals, resulting in a noticeable increase in domestic visitors to our resorts.
The “My Friends Are Cooler Than Yours” package, in particular, struck a chord with young adults and groups of friends looking for memorable getaways, offering them an affordable and convenient way to experience Namibia’s wildlife and pristine natural environments.
On the international front, NWR made significant strides in marketing its unique offerings to a global audience by participating in prestigious exhibitions such as the Internationale Tourismus-Börse (ITB) in Berlin, Germany. ITB, being one of the world’s leading travel trade shows, provided an unparalleled platform for NWR to showcase the wonders of Namibia to international tour operators, travel agents, and potential tourists from across the globe.
Further to this, NWR warmly received one hundred (100) apprentices from the Federal Republic of Germany as a means to foster intercultural relations and forge closer ties through a Skills Exchange Programme.
“Our common goal was to revitalise our infrastructure. This endeavour, which illustrates the cooperative mindset between Namibia Wildlife Resorts and our German counterparts, introduced fresh insights and devoted practical support to our maintenance procedures. Expertise in consulting for sustainable progress Recognising the critical nature of infrastructure, NWR procured the expertise of a seasoned maintenance consultant in 2023. This critical measure played a significant role in promptly attending to our establishments’ urgent requirements, guaranteeing the uninterrupted provision of the luxury and convenience that our clientele has become accustomed to,” explains NWR.
SUSTAINABILITY
The use of renewable energy (solar plants) since 2017 in four resorts paved the way for a focused approach to reduce our cost of electricity and dependency on the national grid. During the 2023 financial year, three significant resorts in Etosha National Park implemented an efficient energy solution by replacing all bulbs with energy-efficient LED bulbs.
“NWR aims to install more solar plants at at least five of the largest utility expense resorts. This initiative is part of NWR’s commitment to sustainability and reducing its carbon footprint. By utilising solar energy and implementing energy-efficient measures, NWR will decrease its impact on the environment and cut operational costs. The goal is to eventually have most NWR resorts operate on renewable energy sources, demonstrating a strong dedication to environmental stewardship,” further explains NWR.
Solid waste management initiatives and recycling in Etosha National Park resulted in about 1.5 tonnes of boxes, 4.5 tonnes of glass, and 1.7 tonnes of plastic (PET) being taken out of the park.