Analysis
During the month of October 2023, national occupancy rates in Namibia remained at 65% same as recorded for September 2023. When compared to the pre-COVID levels of October 2019, there was a decline of 4% in national occupancy rates (refer to Figure 1). Upon regional analysis, the coastal region of the country achieved the highest occupancy rate at 71.9% for October 2023, closely followed by the northern region at 69.2%. Conversely, the central part of the country reported the lowest occupancy rate, standing at 60.8%. The surge in tourist arrivals at coastal towns is attributed to favorable weather conditions, attracting more visitors seeking to enjoy the beaches and outdoor activities.
Leisure tourism remains the primary driver of these rates in Namibia. During the reviewed period, leisure-related occupancy rates constituted a significant 89.6% of the total national occupancy rates, reflecting a marginal increase of 0.9% from the 88.7% recorded in September 2023. In contrast, the business travel segment accounted for 9.9%, a slight decrease from the 10% recorded in September 2023.
The domestic market contributed 14.8% and 17.5% to the national occupancy during the review month, indicating a decline from the 17.5% recorded in September 2023. This decline suggests subdued demand for domestic accommodation services, highlighting the need to stimulate domestic tourism demand. This could be achieved through the implementation of special travel packages, discounts, and promotional deals to enhance the appeal and affordability of domestic travel for local residents.
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, collectively accounting for 42.3% of international occupancy demand. This trend indicates a pattern of reduced spending by locals on accommodation services
Outlook
As the festive season approaches, Namibia Wildlife Resorts (NWR) is set to kick off its Black Friday Specials from November 24 to November 30, 2023. These exclusive vouchers have been thoughtfully designed with avid travelers in mind, offering affordable opportunities for those eager to explore the country. With these enticing Black Friday Specials, NWR aims to extend accessible options for people interested in discovering the diverse attractions Namibia has to offer.
Anticipating the positive impact of these specials, we expect the tourism sector to maintain its favorable trajectory throughout the remaining two months of the year 2023. The strategic timing aligns with the festive spirit, encouraging more individuals to take advantage of these discounted opportunities and contribute to the continued growth and vibrancy of the tourism industry in Namibia
Figure 1: National Occupancy Rates, Namibia (October 2022- October 2023)
Source: H.A.N & HEI RESEARCH