Windhoek
FNB Namibia and Fenata have released the latest tourism index, which indicates that the 2015 third quarter tourism index dipped by 10.5 percent as bed occupancy rates and passenger arrivals declined compared to 2014.
Daniel Kavishe, market research manager at FNB Namibia Holdings, said the performance, albeit expected, would not continue into the fourth quarter as pass-through effects of the weakened Rand supported business within the industry. “The currency index improved (weakened) by 9.1 percent at the end of September 2015 which could potentially aid the lacklustre performance of 1H2015,” he added.
Kavishe says FNB introduced the Tourism Sentiment Index, which tracks overall responses within the market regarding current and future expectations: “According to the index, sentiment grew to 1.85 at the end of the third quarter compared to 0.68 in the same period last year; 47.0 percent of tourism vendors cited acceleration in overall business performance as they recorded higher sales numbers. Tourist activity further increased by 43.3 percent during the period under review according to various tour operators. The reverse in trend will likely lift the slump within the sector.”
In the index it is also mentioned that with an increase in demand, prices at lodges and restaurants were adjusted upwards by 17 percent. This ushered in an increase in capital expenditure by 47.1 percent of respondents; 24.7 percent of the respondents further increased their staff capacity to meet the demand in the market.
The view in the market was that the weakening currency spiked interest of several tourists from the Unites States and Europe who were keen to enjoy the various tourist packages that were on offer at both lodges and game reserves.
When looking forward FNB and Fenata advised that the final quarter of 2015 was expected to record positive numbers.
Kavishe said: “According to 61.0 percent of the vendors interviewed, tourist numbers are expected to increase across the board, which will have a ripple effect on sales and revenue; 26.1 percent of the businesses are confident that the fourth quarter would prove to be the best quarter of the year in terms of business performance. Overall improvement in service delivery in the sector is expected to aid the outcome of the December tourism season as well.”
Furthermore, a recent international report on tourism indicated that most of the global tourists emanate from Asian countries. This bodes well for several African countries, which continue to offer superior experiences for global tourists.
Finally, it was also mentioned that the tourism sector continues to face challenges which unfortunately derailed the operations of several tourism vendors in the third quarter.
According to several reports, flights from the local airline were grounded due to technical difficulties. One respondent stated that numerous flights were mostly empty, with Namibia having to offer up to 50 percent discount to fill up their seats.
The vendors are of the opinion that this may have damaged the reputation within the airline services. Other vendors cited an increase in criminal activities across lodges in Namibia. Safety and security is an area that will need to be enhanced in order to maintain the same level of professionalism.
“Looking ahead 2016 should lead to increased spending by tourists in Namibia as the Rand continues to free fall against global currencies. Government and tourist operators should place concerted efforts in advertising Namibia as a cheap and friendly tourist destination in order to capitalise on current markets,” Kavishe concluded.