- Analysis
The national occupancy rates increased to 60.98% for July 2023 from 51.18% recorded in June 2023 (Figure 1). This translated into a 10.3% monthly increase. The monthly increase could be primarily attributed to July being Namibia's peak tourism season, characterized by ideal weather conditions and a heightened influx of travelers. Breaking down the regional data, the central part of the country recorded the highest occupancy rate of 62.69% for July 2023, followed by the northern part of the country recording 62.54%. The Southern part recorded the lowest occupancy rate of 58.86%.
According to the Hospitality Association of Namibia, the average room occupancy of 60.98% in July 2023 outperformed the July 2019 occupancy by over one percent and is almost 10% higher than the levels of last year (Figure 2).
Namibia’s occupancy rates continue to be driven by leisure activity travelers. During the month under review, occupancy rates for leisure activities made up 93.65% of the national occupancy rates, an increase from the 80.39% recorded for June 2023. This could be driven by low prices for package holidays between June and July 2023 (NSA, NCPI July 2023). Additionally, the business category accounted for only 5.67% of national occupancy for July 2023, a decline of 17.33% that was recorded in June 2023, implying subdued tourism business activities.
The domestic market accounted for only 22.1% of national occupancy during the month under review, a decline from 30.2% recorded in June 2023. The remaining percentage is for international tourists, with a high demand for occupancy from Germany, Switzerland, and Australia, accounting for 28.97% of international occupancy demand. This implies that locals are limited in spending on accommodation services.
We anticipate that the tourism sector will maintain its favorable trajectory in the short to medium term. To maintain and capitalize on this positive trend, stakeholders in the tourism industry should focus on providing excellent visitor experiences, promoting responsible tourism practices, and adapting to changing consumer preferences and travel trends. Additionally, diversifying the tourism product and expanding source markets can help ensure a robust and resilient tourism sector in the long run.
Figure 1: National Occupancy Rates, Namibia (July 2022- July 2023)
Source: H.A.N & HEI RESEARCH
Figure 2: National Occupancy Rates, Namibia (July 2019, July 2022 & July 2023)
Source: H.A.N & HEI RESEARCH
