Background
The room and bed occupancy rates serve as a proxy for Namibia’s tourism sector. This indicates the demand for accommodation services in the country. The Covid-19 restrictions and lockdown measures imposed during the year 2020 to contain the spread of Covid-19 negatively affected the demand for accommodation services resulting in historically low occupancy rates for Namibia. Figure 1 below depicts national rooms and beds occupancy rates pre-Covid-19 and during the Covid-19 pandemic.
Additionally, in the first quarter of 2022, the statistics indicate that the demand for accommodation services has improved during the first quarter of 2022. The improvement was influenced by the relaxation of Covid-19 travel regulations which has created a more permitting atmosphere for visitors.
Figure 1: Rooms and beds occupancy rates, Namibia (2019-2022Q1)
Source: H.A.N & HEI RESEARCH
Outlook
There are green shots on the horizon for the revival of Namibia’s tourism industry and the demand for accommodation services for the year 2022. The positive outlook is reflected by a high demand for accommodation services that has driven GDP growth for the category of Hotel cafés and restaurants and improvements in the number of international arrivals during the first 3 months of the year 2022.