Namibia’s Tourism Industry Set to Generate N$4.6 bn in 2025 Amid Strategic Growth Initiatives and Rising Global Interest

(3 Minutes Read)

Namibia’s tourism sector is expected to generate approximately N$4.6 billion in revenue by 2025, propelled by a projected 5.5% growth rate in the industry and a 7.3% rise in international visitor arrivals, according to a recent report by financial advisory firm Simonis Storm.

This growth is attributed to a combination of strategic developments and targeted interventions, including enhanced international air links, promotional campaigns in emerging markets such as Asia and Europe, and the increasing popularity of eco-tourism and cultural travel experiences. These elements are reshaping the country’s tourism profile, with a greater emphasis on quality experiences over mass tourism.

Almandro Jansen, Junior Economist at Simonis Storm, explained that improved global connectivity and focused marketing efforts are key drivers of this upward trend. “We’re seeing significant traction from travellers interested in sustainable and culturally immersive experiences, particularly from Asia and Europe,” he said.

In terms of performance metrics, April 2025 saw the highest hotel occupancy rate for the year at 54.94%, a notable 24.1% increase from March 2025, and slightly surpassing the pre-pandemic level of April 2019, which stood at 54.73%. However, despite this positive monthly result, the year-to-date average occupancy remains at 41.49%, which is still below the 2019 average of 44.92%. This indicates that while recovery is underway, the sector has not yet returned to pre-COVID-19 levels.

Jansen highlighted that Namibia’s strategic shift toward attracting high-net-worth tourists—through the development of luxury lodges and exclusive eco-tourism experiences—is positioning the industry to better withstand external economic pressures. “Luxury travel typically remains resilient during global downturns, providing a more stable revenue base and supporting the sector’s long-term sustainability,” he said.

Further enhancing the industry’s resilience is Namibia’s ongoing effort to promote itself as a year-round travel destination. Jansen noted that reducing dependency on seasonal peaks is central to the country’s broader tourism reforms, which include the National Tourism Policy, the anticipated Tourism Act, and the Spatial Tourism Development Master Plan.

“These campaigns are helping distribute tourist activity more evenly throughout the year and across various regions, which boosts regional economies and infrastructure development,” Jansen added. He emphasized that tourism is now viewed as a key driver of economic growth for the rest of 2025.

The tourism sector is also being buoyed by large-scale private sector investments in green hydrogen, oil and gas, salmon farming, and mining and pipeline infrastructure—particularly in and around Lüderitz. These projects are not only contributing to economic diversification but also raising Namibia’s profile as an investment and travel destination.

To sustain this growth trajectory, Simonis Storm has identified four critical areas for continued investment and policy focus:

1. Streamlining visa and entry processes,
2. Enhancing transportation and tourism-related infrastructure,
3. Expanding international flight routes, and
4. Implementing robust sustainability standards to align with global best practices.

“The alignment of tourism initiatives with national strategic documents like the Tourism Act and the Spatial Tourism Development Master Plan is crucial for fostering investor confidence and driving long-term sectoral development,” said Jansen.

Read Also;

https://trendsnafrica.com/namibia-eyes-on-mice-tourism/

Meanwhile, the Ministry of Environment, Forestry and Tourism, through the Namibia Tourism Board, has launched a N$51.3 million international marketing campaign aimed at attracting tourists from Asia, the UAE, and North America. This is part of a deliberate strategy to diversify Namibia’s tourism source markets and reduce dependency on traditional European visitors.

“By broadening our market base, we not only mitigate risks tied to downturns in established markets but also create new avenues for foreign exchange earnings, job creation, and investment in sectors like hospitality and logistics,” Jansen concluded.