The National occupancy rates increased to 51.2% for June 2023 from 50.8 % recorded in May 2023 (Figure 1). The central part of the country continues to record the highest occupancy rate of 58.4% for June 2023 followed by the coastal part of the country recording 50.7% and the Southern part recording the lowest occupancy rate of 44.10%.
According to the Hospitality Association of Namibia, the months of June 2019 and 2023 ended at nearly the same level of 51% occupancy across the country, with the average occupancy for the first six months of this year at 44,68%, just 2,5% lower than the 47,23% occupancy in the first half of 2019. On a quarterly basis, national occupancy improved during quarter 1 of 2023 recording 38.1% from 22.8% that was recorded during the quarter of 2022 (Figure 2).
Namibia’s occupancy rates continue to be driven by leisure activity travelers. During the month under review, occupancy rates for leisure activities took up 80.1% of the national occupancy rates, a decline from 89.6% that was recorded for May 2023. This could be driven by low demand as a result of an increase in the prices for package holidays between May and June 2023(NSA, NCPI June 2023). Additionally, the business category took up 17.1% of national occupancy for June 2023 an increase from the 10.6% that was recorded in May 2023. This implies an increase in the demand for business-related activities which suggests a vibrant and growing business environment.
The domestic market accounted for only 30.1% of national occupancy during the month under review, an improvement from 22% that was recorded in May 2023 and the remaining percentage is from international tourists, with high demand for occupancy from Germany, Switzerland and Australia accounting for 24.06% of international occupancy demand.
We expect the tourism sector’s positive trend to continue upward in the short to medium term. However, there is a need for data on the full tourism spectrum such as (travel agencies and tour operators, adventure tourism, car rental, aviation, and the catering sector) all of which will contribute to Namibia’s tourism industry’s full impact and value.
Figure 1: National Occupancy Rates, Namibia (June 2022- June 2023)
Source: H.A.N & HEI RESEARCH
Figure 2: National Occupancy Rates, Namibia (Q1 2022 vs Q1 2023)
Source: H.A.N & HEI RESEARCH