. . . as government continues to delay N$400m subsidy
Andrew Kathindi
Minister of Environment, Forestry and Tourism Pohamba Shifeta has said that the tourism sector could lose at least N$20 billion in anticipated revenues and fixed assets by the end of 2020 due to the global lockdown caused by the COVID-19 pandemic.
Namibia has received no inbound tourists since international borders of all countries were virtually closed to combat the spread of COVID-19. The Minister has told the Windhoek Observer that he believes that it is most likely that the tourism sector in Namibia will pick up only after 18 months and may well lose over N$20 billion by the end of the year.
“If we are lucky, tourism in Namibia will pick up only after 18 months. That means in the entire year we might not have tourists at all from outside depending on the state of the pandemic from outside, especially the North American, European and Asian markets. This means 120,000 jobs in the tourism and hospitality industry will be impacted by COVID-19,” Shifeta said.
While it was announced earlier last month that government had availed N$400 million to the tourism sector as a subsidy, many businesses have had to close their doors and furlough all employees while waiting for these funds as they are unable to operate. The minister has said these funds have still not been provided by the Ministry of Finance and his office is awaiting an update.
“We need to find out from fiscus because there are some modalities that have to be worked out first so that people can start applying for it. I believe we are not at that stage. We will inform the industry when we are ready so that people can start applying,” Shifeta told Windhoek Observer.
Shifeta was hopeful that Namibia’s tourism industry will start interacting with South Africa and the other SADC countries by the end of the year, to attract some tourists. He believed this level of cross-border tourism may be possible after the next several months due to Africa’s generally low transmission rate of the COVID-19 compared to the places like Europe and North America.
“It is also a lesson for us. In the future, we need to diversify our inbound tourism markets and attract more guests from within Africa. We will increase efforts to build that capacity. Most Africans with disposable income to travel prefer going to North America or to Europe on holiday, but they do not know much about the iconic tourism destinations on their own continent.”
On the perceived exuberant rates of many lodges and tourism spots in the country by domestic tourists, the minister said he was hopeful that the local industry will consider cutting their room and meal prices to accommodate the local market.
“When you have a low demand, you have to adjust your prices. You need to make sure that you are comfortable with what you have. With the tourists who will come, you have to treat them well and cut the rates. It is important to encourage their occupancy and create another client base. We will work towards this with the industry to make sure to promote domestic tourism and inter-African tourism.
“We need to attract more domestic tourists with lower rates and specials to generate enough to keep a few hospitality industry business doors open and functioning even at a minimal level.”
This comes as Namibia has entered stage two of the lockdown, where local travel is permitted.
