PREMIUM: The rise of luxury lodges and exclusive experiences has positioned Namibia as a premium destination. Photo: FILE
PREMIUM: The rise of luxury lodges and exclusive experiences has positioned Namibia as a premium destination. Photo: FILE

Tourism sector exhibits steady growth

European tourists continue to dominate arrivals
With the festive season approaching, an increase in domestic and SADC visitors is expected.
Ellanie Smit
Namibia’s tourism sector exhibited resilience and steady growth in August this year, 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.

According to the Hospitality Statistics Report for August by Simonis Storm, 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 report underlined that the continued dominance of holiday and leisure travel presents opportunities for further development in infrastructure to enhance the visitor experience and maintain the positive momentum.

However, the report said as a significant portion of Namibia’s top tourists now face new visa requirements, it is crucial for both the hospitality industry and the tourism ministry to streamline processes and provide exceptional services to ensure sustainable growth.

Wealthy visitors

Leveraging this seasonal surge could further boost occupancy rates, thereby contributing positively to the economic impact of the hospitality sector, the report noted.

Moreover, while the South African rand has strengthened by nearly 7% against the US$ and 5% against the euro this year, potentially making travel to Namibia more expensive for international tourists, a growing trend in the sector toward targeting wealthier tourists was observed.

“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.

European arrivals

European tourists continued to dominate Namibia's international visitor profile in August 2024, making up 70.28% of foreign arrivals, the highest percentage recorded this year.

Among the European countries, Austria, Germany and Switzerland were the top contributors, collectively representing 31.68% of all European visitors. Italy demonstrated significant growth, with its market share rising sharply from 4.48% in July to 12.91% in August.

France ranked third, contributing 9.88% to the European segment.

Visitors from the rest of Africa saw a year-on-year increase, with their share rising to 1.67% from 0.90% in the previous year.

The report further highlighted that 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.”

Numbers measured

The national year-on-year occupancy rate in the hospitality sector decreased to 63% in August, down from 68.9% in August last year.

However, on a month-to-month basis, the sector experienced an improvement of 3.28% from July to August this year.

The northern region recorded its highest occupancy rate for the year at 70.42%, which can be attributed to the heightened wedding-related activities, Simonis Storm noted.

“In contrast, the southern and central regions saw declines, with occupancy rates dropping to 56.63 and 51.88%, respectively.”

According to the report, the coastal region also recorded a slight year-on-year decrease to 66.22%, yet it experienced a 6.4% month-on-month increase from July’s figure of 59.8%.

Meanwhile, leisure travel remained the dominant segment in August this year, 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, 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.

Local travel experienced a notable increase, the report found, with Namibian visitors accounting for 14.91% of total occupancy in August this year, up from 16.39% the previous month.

Conversely, South African tourist numbers almost halved, declining from 6.30% in July to 3.69% in August 2024.

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Namibian Sun 2024-11-23

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