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The Namibian tourism sector recorded significant increases in occupancy rates across the board and is anticipated to grow substantially this year. The recent data shows that foreign arrivals in the last 12 months account for approximately 82% of pre-pandemic levels. The number of foreign arrivals averaged 11,431 per month during the first two months of 2023, compared to a monthly average of 5,223 in the first two months of 2022.
The Namibian tourism sector recorded significant increases in occupancy rates across the board and is anticipated to grow substantially this year. The recent data shows that foreign arrivals in the last 12 months account for approximately 82% of pre-pandemic levels. The number of foreign arrivals averaged 11,431 per month during the first two months of 2023, compared to a monthly average of 5,223 in the first two months of 2022.
The tourist inflows still look promising and are set for further growth in 2023. Foreign arrivals increased by 107% y/y in February 2023. Foreign arrivals in the last 12 months account for about 82% of pre-pandemic levels, implying that most of the recovery has been achieved, whereas regional arrivals have reached about 79% of pre-pandemic levels.
In March 2023, the occupancy rate across nationwide hospitality establishments stood at 40.7%, compared to 31.7% recorded in the prior month and 39.4% in March 2022. The occupancy rate averaged 36.5% in the first quarter of 2023, compared to an average of 46.1% in the previous quarter. This is the best first-quarter occupancy rate since the onset of the pandemic, and so the local tourism sector is off to a good start in the current year.
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Namibia’s peak tourism season begins next month and expects occupancy rates to rise in the second and third quarters of the year, following the pre-pandemic trend. The central area of Namibia recorded the highest occupancy rate in March 2023, at 52.7%, followed by the southern area (41.1%) and the coastal area (39.7%). In contrast, the northern area had the lowest occupancy rate of 34.6%, almost 20 percentage points below the central area.
There has been a substantial increase in occupancy rates across all areas – except the coastal area – when compared to 12 months ago. Leisure tourism remains the primary 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%. The majority of visitors in March 2023 came from Germany, Austria, and Switzerland, followed by locals and South Africans.
