Namibia has a chance this year to elevate its profile among hotel investors.
This week, Namibia hosts the Africa Hospitality Investment Forum for the first time. Hoteliers will gather in the country’s capital of Windhoek at the Mövenpick Hotel Windhoek between June 25-27.
For Namibian hoteliers, tourism officials, developers and investment managers, it is the perfect time to highlight a country of 318,000 square miles in size but a population of only 3 million.
Nangula Uaandja, CEO of the Namibia Investment Promotion & Development Board, said AHIF is a springboard, as Namibians desire to diversify the country’s economy and have identified tourism as a key driver of that diversification.
“With the high caliber of investors, hoteliers and financiers coming to Namibia, we are very deliberate in leveraging the convening power of AHIF to showcase the investment opportunities in this sector, with a clear end goal of securing investments that enable a sustainable future for Namibians,” Uaandja said.
In September 2020, the Namibian government launched an International Tourism Revival Initiative with the objective of creating new tourism routes, expanding tourism offerings and establishing the Namibia Convention Bureau, which is marketing the country and promoting it as a destination for meetings, incentives, conventions and expositions. Officials have also been tasked with developing new source markets and diversifying offerings to increase its competitiveness and secure new and repeat visitors, Uaandja said.
Oil has been discovered beyond Namibia’s coast, which is already increasing business travel, particularly toward the southern and coastal parts of the country.
Namibia’s hotels traditionally have been developed with a combination of debt and equity, Uaandja said. There is also a mix of domestic and international investment in Namibia’s hotel landscape.
“There is a good number of banks that are licensed to operate as commercial banks in Namibia, and most of them have hotels in their loan portfolios. Bank Windhoek is the only wholly owned Namibian bank in the country,” she said. “The rest are pan-African and regional banks with shareholding interests mainly from South Africa, Botswana, Angola and Portugal. So there’s a lot of international capital in both the banking and hotel industries.”
As Namibia hopes to grow its hotel and tourism industry, the challenges it faces include a shortage of skilled staff, a lack of readily available capital for investment, growing operational costs and the sector’s high seasonality due to a reliance on international visitors.
Natural Wonders
Namibia will continue to showcase the country’s unique tourism offerings, which include Etosha National Park, Skeleton Coast, Sossusvlei sand dunes and the Namib Desert, Uaandja said. In 2022, 461,027 visitors traveled to the country for such destinations, according to Namibia’s Ministry of Environment, Forestry and Tourism. A record high of 1.59 million tourists stopped in Namibia in 2019, the year before COVID-19, and tourism numbers are expected to steadily grow back up to that level.
Uaandja said Namibia is more than wildlife and scenery.
“It is a country with a vibrant cultural heritage, world-class transport and logistical infrastructure, and a sound financial system and macroeconomic framework, as well as good governance, peace and political stability,” she said, adding Namibia has consistently ranked first in Africa for the best-quality roads.
Namibia’s indigenous history comprises the people of the Damara, Himba and San, among others, but during much of the 20th century Germany and South Africa ruled the country. Namibia gained its independence on March 21, 1990, and has scheduled presidential elections for this November.
Thriving Cities
Windhoek is Namibia’s capital, largest city and principal tourism hub for international visitors.
Hotel investors are attracted to the city’s economic vibrancy, Uaandja said, but added that other, smaller cities in the country also have seen their share of hotel and hospitality investments, such as Lüderitz and Swakopmund.
She said Namibia has a range of hotels from budget to luxury, as well as numerous safari lodges that also span all the segments. Hotels affiliated with international brands or that are well-known independent properties include the Avani Windhoek Hotel & Casino; Hotel Heinitzburg; Hotel Thüringerhof; Protea Hotel Windhoek Fürstenhof by Marriott; Town Lodge Windhoek; Windhoek Country Club Resort; Strand Hotel Swakopmund; Beach Hotel Swakopmund; Swakopmund Hotel & Entertainment Center; Bay View Resort Hotel Namibia; Pelican Point Lodge; Zannier Hotels Sonop; Le Mirage Desert Lodge & Spa; and Protea Hotel Walvis Bay, among others.
Namibia has always placed emphasis on premium, unique destinations, Uaandja said. These destinations also include Sandwich Harbor, where the Atlantic Ocean and Namib Desert meet, and areas such as the NamibRand Nature Reserve that have been awarded a Gold DarkSky Certificate for its unpolluted views of the night sky and Milky Way.
Fifty-four countries, including the U.S., United Kingdom, Canada, France, Germany and Japan, receive 90-day entry permits to Namibia on arrival. Its most popular entry point is the Hosea Kutako International Airport, located 30 miles east of Windhoek.
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