Tourism continues on journey to recovery

In the first three months of 2023, Namibia’s tourism sector recorded its best first quarter performance since the beginning of the pandemic, registering an average occupancy rate of 36.5%.

“Tourist inflows still look promising and set for further growth in 2023,” Simonis Storm (SS) commented on the latest figures by the Hospitality Association of Namibia (HAN).

Over the past 12 months, foreign arrivals have accounted for approximately 82% of pre-pandemic levels, indicating significant progress in the recovery process, according to SS. Meanwhile, regional arrivals have reached around 79% of pre-pandemic levels.

The nationwide occupancy rate for hospitality establishments in March 2023 was 40.7%, an increase from the previous month's rate of 31.7%, and slightly higher than the rate of 39.4% recorded in March 2022.

The number of rooms sold in March 2023 increased substantially by 32% compared to the same month in the previous year, from 16 820 to 22 286. However, despite this growth, the numbers are still below pre-pandemic levels, SS said.

Additionally, the number of beds sold increased by 40% year-on-year (y/y), with 39 524 beds sold in March 2023 compared to 28 167 beds sold in March 2022.

Regions

In March 2023, the central area of Namibia recorded the highest occupancy rate of 52.7%, followed by the southern area (41.1%) and the coastal area (39.7%), SS said.

On the other hand, the northern area had the lowest occupancy rate of 34.6%, which was almost 20 percentage points lower than the central area. However, there has been a significant increase in occupancy rates across all areas, except the coastal area, when compared to 12 months ago, SS continued.

According to the analysts, the North recorded the most significant decline in occupancy rate quarter-on-quarter, which was down by 32.4%. This decline can be attributed to the high base provided by the festive season, they said.

Leisure tourism remains the main driver of tourism, accounting for 91.9% of visitors in March 2023, while business travellers accounted for 6.3% and conference attendees accounted for 1.8%.

During March 2023, the majority of visitors were from Germany, Austria, and Switzerland (39%), followed by locals (27%) and South Africans (9%), SS said.