Analysis
In August 2023, national occupancy rates in Namibia saw a notable increase, rising to 69% from the previous month’s figure of 61% (see Figure 1). This reflects an 8% month-over-month increase. When examining regional data, the northern region of the country achieved the highest occupancy rate at 76.4% for August 2023, followed by the southern region at 65.4%. In contrast, the coastal region reported the lowest occupancy rate at 61.9%. The surge in occupancy rates in the northern region could be attributed to the Ongwediva annual trade fair held in August, which attracted a significant influx of visitors, leading to heightened demand for accommodation facilities in the northern part of the country.
On an annual basis, national occupancy rates experienced an 8% increase. The primary driver of these rates in Namibia remains leisure tourism. During the period under review, leisure-related occupancy rates constituted a substantial 95.06% of the total national occupancy rates, marking a significant increase from the 93.65% recorded in July 2023.
Conversely, the business travel segment accounted for only 4.13% of the national occupancy rates for August 2023 compared to 5.67% recorded the prior month signaling a continued subdued environment for business-related tourism activities.
In terms of the domestic market, it contributed only 14.22% to the national occupancy during the review month, representing a decline from the 22.1% recorded in July 2023. This decline underscores weak demand for domestic occupancies. The majority of the national occupancy was attributed to international tourists, with a substantial demand for occupancy originating from countries such as Germany, Switzerland, and Australia, accounting for 34.33% of international occupancy demand. This indicates a trend of reduced spending by locals on accommodation services.
Figure 1: National Occupancy Rates, Namibia (August 2022- August 2023)
Source: H.A.N & HEI RESEARCH
Figure 2: National Occupancy Rates, Namibia (August 2019, August 2022 & August 2023)
Source: H.A.N & HEI RESEARCH
Outlook
We anticipate the tourism sector to maintain its favorable trajectory in the short to medium term.