Hotel occupancy recovering after Covid-19

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Hotel occupancy recovering after Covid-19
Hotel occupancy recovering after Covid-19

Africa-Press – Namibia. HOTELS are no longer empty, and at the end of last year, at least 40% of rooms on average in hotels were occupied every month.

Namibians are also stepping up to explore local landscapes, and analysts say the share of Namibian guests remains high, indicating that locals are eager to support the tourism industry.

Simonis Storm Securities analysts say during 2021 Namibians accounted for about 51% of all guests at nationwide hospitality establishments.

This share reduced to about 33% in 2022, showing an improvement in global travel.

The overall 40% occupancy rate involves a recovery from the past two years, with 2020 (16,6%) and 2021 (23,6%) being Covid-19-impacted years.

Before the pandemic, annual averages crossed the 50% bar – with 2018 and 2019 recording averages of 53% and 53,9%.

Simonis Storm analysts say although the occupancy rate was at 40% last year, “tourism could be one of the biggest drivers of economic activity in 2023, despite recessions that are expected to take place in Namibia’s main tourist source markets in the first half of 2023”.

Data from the Hospitality Association of Namibia shows occupancy rates at nationwide hospitality establishments stood at 37,9% in December 2022, compared to 45,8% in the prior month.

This is almost double the annual average in 2021, and since June 2022 has reached about 80% of pre-pandemic levels.

Travelling is good, but inflation has been eating away much-needed exploring dollars, and if it continues uphill, some tourists could be kept at bay.

In the November 2022 inflation report, Simonis Storm said the average room rate at lodges increased by 13,4% in 2022 compared to 2021, with the average game drive price increasing with 10% and average campsite prices rising 10,3% during the same time.

“While we do expect inflation rates to decrease in 2023, accommodation costs will remain expensive for locals. Providing some relief to local travellers, however, is our expectation that local petrol prices ought to decrease over the next couple of months,” Simonis said. Namibia recently joined a group of 33 African countries in the Single African Air Transport Market (SAATM).

This is a project of the African Union Agenda 2063, which aims to create a single unified air transport market in Africa, reduce travelling costs, and enhance the continent’s integration.

This would not only benefit tourist flows between African countries, but could improve air cargo as well by reducing taxes and charges at airports.

Joining SAATM comes at a time when the local tourism industry is trying to diversify its tourist source markets.

Namibia’s peak tourist season (between May and September) coincides with Europe’s summer season.

The idea is to market Namibia as an ‘all-year’ destination by targeting marketing efforts at alternative markets of which the summer season coincides with Namibia’s.

These countries include Latin America and other African countries.

Several local tourism companies and the Namibia Investment Promotion and Development Board have also employed social media influencers such as Ghanaian Wode Maya and others to sell the country.

“These initiatives, if proven successful, would be positive for the local tourism industry, a significant employer of Namibians and one the industries with the widest value chains in the local economy,” the analysts said.

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