The National occupancy rates declined to 50.8% for May 2023 from 51.8 % recorded in April 2023, (figure 1). The central part of the country recorded the highest occupancy rate of 54.8% for May 2023 followed by the Nothern part recording 52.1% and the coastal part of the country recorded the lowest occupancy rate of 44.2%. According to the Hospitality Association of Namibia, Europe continues to shine as Namibia’s main source market with over 55% of visitors coming from greater Europe, (just under 31% from German-speaking Europe and 24% from other European countries, 8% of them from France.
Additionally, Leisure tourism activities remain Namibia’s primary driver of tourism and it accounted for 89.2% of visitors during the month under review. Leisure tourism activities may not be favorable to an economy and may bring about negative implications. The implications may include; popular leisure destinations may face issues of overcrowding, particularly during peak seasons. This can put a strain on Namibia’s infrastructure and public facilities, leading to congestion, increased pressure on natural resources, and degradation of the tourist experience, Overemphasis on leisure tourism activities may lead to negligence or underdevelopment of other tourism segments such as business travel, educational tourism, medical tourism, or adventure tourism, hence it is critical for Namibia to diversify the tourism portfolio. This can help mitigate risks and ensure a more balanced tourism industry.
The domestic market accounted for only 22.5% of national occupancy during the month under review, with the remaining percentage of national occupancy rates going to the international market. This indicates that the tourism sector is heavily reliant on international tourists, and thus there is a need to create an environment that encourages residents to engage in tourism-related experiences and activities within their own country. Measures to promote domestic tourism may include; Launching targeted marketing campaigns that highlight the benefits of domestic tourism, Introducing incentives such as tax breaks, subsidies, or discounts for domestic travelers, and engaging with tourism industry stakeholders, including hotels, restaurants, tour operators, and transportation providers to develop attractive packages and offers specifically targeting domestic tourists, encouraging the development of community-based tourism initiatives where local communities are involved in providing authentic and immersive experiences to domestic tourists, Promote travel during off-peak seasons or weekdays by offering special promotions, discounts, or packages, etc.
A consistent upward trend in occupancy rates in Namibia confirms the country’s robust tourism recovery. While June is typically a quiet month prior to the tourism high season, we believe the trend of tourism growth will continue in the short to medium term.
Figure 1: National Occupancy rates vs. HKIA arrivals rooms and beds occupancy rates, Namibia (May 2022- May 2023)
Source: H.A.N & HEI REASEARCH