An analysis of Namibia's tourism industry: Constraints, income and employment creation
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Date
2004
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Abstract
The study seeks to analyse the constraints affecting the growth of Namibia's tourism sector and estimate tourism income and employment
In 1991, immediately after Namibia's independence, Cabinet declared tourism as a priority sector for economic development. In 1994, a White Paper on Tourism Policy was approved. Ten years after the White Paper's adoption, the performance of and constraints in the tourism sector had not yet been assessed. Meanwhile, the sector reached a decisive point when international tourism arrivals and tourism revenue declined between 2002 and 2003
The results of the survey indicate that value for money among tourism establishments is decreasing, particularly in respect of accommodation and restaurants. Several tourism establishments are not up to international standards, and the prices charged are not justified by the services delivered. Tourists visiting Namibia are increasingly dissatisfied by this situation. Moreover, the study reveals that accommodation establishments and restaurants are the pillars of the tourism industry: about 89 percent of tourism income and 60 percent of direct tourism jobs are generated from these quarters
Furthermore, the analysis indicates that tourism generated N$5, 377 million (equivalent of 16 percent of gross domestic product at current prices) and 22, 986 direct jobs (about 5 percent of total employment) in 2002. At 3. 8 percent, tourism growth is lower than the 6 percent predicted by the Second National Development Plan for the period 2001/2002-2005/2006 (NPC 2002). The tourism sector did not move satisfactorily above the internationally recommended minimum growth of 3. 4 percent
Moreover, Namibia lost 5. 2 percent and 8. 2 percent of its market share for German and South African tourists, respectively, between 2002 and 2003. During the same period, Namibia experienced an 8 percent decrease in tourist arrivals from 757, 201 in 2002 to 695, 221 in 2003. Simultaneously, the country's revenues decreased by 8-10 percent, as reported by tourism enterprises. Similarly, the average number of nights that tourists spent in Namibia decreased from 12 in 1996 to 11 in 2002
Many tourism establishments ranked their income as being much lower in comparison with previous years. The occupancy rate between 2002 and 2003 stood at just 34 percent, whereas it ranged between 54 percent and 70 percent in previous years. These findings testify to a potential collapse of Namibia's tourism industry
Consequently, several proposals are made regarding interim and long-term policy measures to mitigate impediments and accelerate tourism economic growth
Description
A research paper submitted in partial fulfilment of the requirements for the degree of master of public policy and administration
Keywords
Tourism industry