CHAMWE KAIRA
Namibia’s tourism sector continued to demonstrate resilience in September, with a diverse mix of regional and international visitors contributing to the positive outlook, a study has shown.
European tourists remained the largest group, increasing their share to 71.8% from 67.3% in September 2023. This growth highlights Namibia’s ongoing appeal as a premier destination for European travellers, reinforcing the need for tailored marketing strategies and services to cater to this key demographic, as Simonis Storm said in a report.
Leisure travel continued to dominate the sector, presenting opportunities for further infrastructure development to enhance the visitor experience and sustain long-term growth, the report said.
“With the festive season approaching, we expect an increase in domestic and SADC visitors, particularly in the Northern and Coastal regions. Strategic promotional campaigns aimed at maximising this seasonal influx will be crucial to boosting occupancy rates during this peak period,” Simonis said.
Moreover, a key catalyst for domestic tourism growth is the expected third 25 bps rate cut by the Bank of Namibia in December 2024, following two earlier 25 bps cuts this year.
“This additional reduction is likely to further lower borrowing costs, making travel more affordable for local consumers. As a result, we anticipate a boost in domestic tourism, particularly as the festive season coincides with lower interest rates, offering an opportunity for Namibians to travel more affordably,” Simonis said.
In order to stay competitive, especially with the introduction of new visa requirements in key markets, the firm has called on the tourism industry and government support to streamline visa processes and concentrate on providing high-quality services.
“By addressing these logistical challenges and ensuring smooth access for international visitors, Namibia can continue to thrive as a sought-after destination amidst global economic and geopolitical uncertainties,” the report said.
In the third quarter of 2024, the national average occupancy rate decreased slightly to 63.46%, compared to 64.84% in the third quarter of 2023 and 64.74% in the third quarter of 2019. The northern region showed solid growth, reaching an occupancy rate of 68.21%, driven possibly by renewed interest in rural tourism and improved infrastructure.
However, the coastal and southern regions saw marginal declines, with occupancy falling to 69.43% and 60.09%, respectively.
The central region experienced the most notable decrease, with its occupancy rate dropping to 48.03%, potentially reflecting a shift in travel preferences away from traditional business hubs.
“The sharp focus on leisure travel, coupled with a weak global economy and fewer major business events in Namibia, likely contributed to this decline in business-related travel,” Simonis said.
