Analysis
In September 2023, national occupancy rates in Namibia stood at 65% a decline from 69% recorded in August 2023 (see Figure 1). This translated into a 4% monthly decline. When examining regional data, the northern region of the country achieved the highest occupancy rate at 68.9% for September 2023, followed by the central region at 66%. The coastal region reported the lowest occupancy rate for the second consecutive month at 57.8%. The surge in occupancy rates in the northern region could be attributed to the World Skills competition held in September, which could have attracted a significant influx of visitors, leading to heightened demand for accommodation facilities in the northern part of the country.
Furthermore, quarter 3 recorded a National occupancy rate of 65% an increase from 54.6% compared to quarter 3 last year and slightly higher than 64.7% recorded in 2019 pre-Covid. The Hospitality Association of Namibia attributed this growth primarily to a rise in arrivals from Central Europe. Both the German-speaking countries (D.A.CH) and France and Italy experienced increases of over 3% compared to 2019 levels. (See Figure 2).
The primary driver of these rates in Namibia remains leisure tourism. During the period under review, leisure-related occupancy rates constituted a substantial 88.7% of the total national occupancy rates, marking a decline from the 95.06% % recorded in August 2023.
Conversely, the business travel segment accounted for a 10% increase from 4.13% of the national occupancy rates recorded in August 2023. This signal improved business-related tourism activities.
The domestic market contributed 17.5% to the national occupancy during the review month, representing an increase from 14.22% recorded in August 2023. The decline indicates improved demand for domestic accommodation services. Most 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 40.4% of international occupancy demand. This indicates a trend of reduced spending by locals on accommodation services.
Figure 1: National Occupancy Rates, Namibia (September 2022- September 2023)
Source: H.A.N & HEI RESEARCH
Figure 2: National Occupancy Rates, Namibia (Q3 2023 vs 2019(pre-Covid) & 2022(post-Covid)
Source: H.A.N & HEI RESEARCH
Outlook
As the country approaches the festive season, with holiday packages and specials expected to be announced soon, we anticipate the tourism sector to maintain its favorable trajectory in the short to medium term. Top of Form