1. Executive Summary
In February 2024, the national occupancy rates in Namibia were reported at 36.3%, marking a slight decrease from the 36.8% recorded in January 2024. However, this rate signifies an annual increase from the 33.1% observed in February 2023. When compared to pre-pandemic levels, which stood at 40.1%, it’s evident that the national occupancy rates have not yet fully recovered, indicating that the tourism sector is still on a recovery path.
2. Detailed Analysis
During the month under review, the central region of Namibia recorded the highest occupancy rate at 53.5%. This was followed by the coastal region at 40.5%, while the northern region reported the lowest rate of 31.0%. The high occupancy rates in the central region were primarily driven by an increase in rooms sold for business purposes, suggesting a strong demand for business activities in the country. This could be a positive economic indicator, as it implies that businesses are thriving and attracting customers.
According to the Hospitality Association of Namibia, German-speaking guests accounted for a significant 40.9% of occupancy in establishments in February 2024. This figure surpasses the 40% level and is notably higher than the levels recorded in 2019. This trend underscores the positive impact of direct flights between Windhoek and Frankfurt on the tourism market.
However, the demand for accommodation services by the domestic market slightly declined to 23.1% in February 2024, from 24.9% in January 2024. The demand for accommodation was primarily driven by leisure activities, accounting for 89.9% of the total demand. Business and conference activities accounted for 4.9% and 5.2% respectively.
3. Outlook
In celebration of Independence Day, Namibia Wildlife Resorts (NWR) announced a 60% discount on accommodations at all its locations across the country for March 2024. With these enticing offers, we foresee a boost in domestic tourism activities, which we believe will help maintain the positive momentum of the overall tourism sector in March 2024.
Figure 1: National Occupancy Rates, Namibia (February 2023-February 2024)
Source: H.A.N & HEI RESEARCH