Namibia’s tourism sector exhibited resilience and steady growth in August, bolstered by a diverse mix of both regional and international visitors. European tourists, in particular, were a driving force, with their share of international arrivals increasing to 70.28%, up from 66.33% in July 2024. This upward trend underscores Namibia’s growing appeal as a leisure destination for European travellers, emphasising the importance of tailored marketing strategies aimed at this key demographic.
The continued dominance of holiday and leisure travel presents opportunities for further infrastructure development to enhance the visitor experience and maintain positive momentum.
However, as a significant portion of Namibia’s top tourists now face new visa requirements, it is crucial for both the hospitality industry and the Ministry of Tourism to streamline processes and provide exceptional services to ensure sustainable growth.
With the festive season approaching, we anticipate an increase in domestic and SADC visitors, particularly in the northern and coastal regions, which are popular holiday destinations. Leveraging this seasonal surge could further boost occupancy rates, thereby contributing positively to the economic impact of the hospitality sector.
Moreover, as Namibia has initiated its rate-cutting cycle, we can expect improved consumer and business confidence, which should provide additional support for the hospitality industry. With more rate cuts anticipated, the positive effects on disposable income and corporate sentiment may further stimulate travel and tourism in the months ahead.
While the South African rand has strengthened by nearly 7% against the US dollar and 5% against the Euro this year, potentially making travel to Namibia more expensive for international tourists, we have observed a growing trend in the sector toward targeting wealthier tourists.
The rise of luxury lodges and exclusive experiences has positioned Namibia as a premium destination, which may limit the impact of exchange rate fluctuations on high-income travellers. This shift in focus suggests that, while currency movements may affect some segments of the market, the demand for luxury tourism is likely to remain robust.
In August, the national occupancy rate in the hospitality sector decreased to 63%, down from 68.9% in August 2023. However, on a month-on-month basis, the sector experienced an improvement of 3.28% from July to August 2024.
Due to heightened wedding-related activities, including both hosting and attendance, which are typical for this period, the Northern region recorded its highest occupancy rate for the year at 70.42%. In contrast, the Southern and Central regions saw declines, with occupancy rates dropping to 56.38% and 51.88%, respectively.
The coastal region also recorded a slight year-on-year decrease to 66.22%, yet it experienced a 6.4% month-on-month rise from July’s figure of 59.8%. Leisure travel remained the dominant segment in August 2024, accounting for 92.91% of total room occupancy. Business travel saw a year-on-year increase, contributing 6.48%, while conference-related stays. Though still minimal, it rose to 0.61% compared to the previous August. Despite these gains, business and conference travel continue to play a minor role in comparison to the substantial share of leisure travellers. -Simonis Storm
