The maiden edition of the Africa Hospitality Investment Forum in southern Africa was officially opened yesterday, bringing together some 500 delegates from about 40 countries.
The three-day event is scheduled to conclude today.
The forum is a leading hospitality investment conference that connects business leaders from international and local markets, driving investment into tourism projects, infrastructure and hotel development across Africa.
In attendance, Lullu Krugel, partner, strategy and chief economist at PwC South Africa, said there is more that needs to be done within the Namibian tourism sector.
She conducted a presentation on ‘Africa in the New Global Geopolitical Order: The Impact on the Hospitality Industry’, where she stated that Namibia is not on the list of countries that are expected to attract investments in the hospitality sector.
Opening the event, Vice President Netumbo Nandi-Ndaitwah told the audience that Namibia has experienced a hike in tourist arrivals and bed occupancy rates in the first quarter of the year. Thus, she said, the sector is well on its way to a positive trajectory.
“Our national occupancy rate reached 60.3% in May 2024. This recent figure not only marks the highest room occupancy rate so far this year, but also surpasses the pre-pandemic peak from May 2019. Additionally, passenger arrivals totalled close to 50 000, reflecting an 11.2% year-on-year increase,” she said.
She added that the impact of the tourism sector cannot be overemphasised, noting that the sector has the potential to create business opportunities, particularly for small businesses, and can generate employment, reduce poverty as well as directly sustain the livelihoods of thousands of Namibians.
In 2022, the domestic hospitality and tourism sector contributed approximately 7% of the nominal gross domestic product (GDP), which amounted to N$14.3 billion.
“Our role as a government is primarily to create an environment that enables the sector to continue to grow – be it in the form of policy reforms, tax regimes or consideration of appropriate incentives for investments in the hospitality sector,” she said.
Furthermore, the vice president cautioned that as Africans, there is a need to drive the required investments in air connectivity to make African destinations more accessible within the continent, thus enhancing intra-Africa travel and tourism.
With increased connectivity, Nandi-Ndaitwah believes the continent will increase its collective value proposition as a viable tourism and investment destination.
Meanwhile, the decision by the government to implement visa requirements for countries that require visas from Namibians has attracted criticism from some quarters.
Stock brokerage Simonis Storm (SS) last week said the new visa policy might lead to a decline in international tourist arrivals, particularly from countries now subjected to the new visa requirements.
“This is concerning, as tourism is a vital sector of Namibia’s economy. For instance, tourists from Germany, Austria and Switzerland constitute a significant portion of our tourism market, accounting for an average of 38.2% of those occupying hospitality establishments year-to-date,” the company stated.
Namibia Statistics Agency said, the hotels and restaurants sector recorded a growth of 2.7% in real value added during the first quarter of 2024. This is the ninth successive increase in economic activities after the last quarterly contraction experienced during the fourth quarter of 2021.
“The sector’s growth is reflected by the increase in number of travellers from international, regional and domestic destinations, who demanded hotels and restaurants services. Increased volumes in terms of the value of direct air connectivity added to the sector’s expansion,” reads the NSA report released this month. –mndjavera@nepc.com.na