Namibia - Wind­hoek

Tourism Tattler - - BUSINESS & FINANCE -

Namibia re­mains po­lit­i­cally sta­ble with a sus­tained eco­nomic growth. Ac­cord­ing to the World Bank, the av­er­age an­nual GDP growth rate was 5.6% per year be­tween 2011 and 2015. In 2016, how­ever, the GDP growth rate dropped to only 1% due to a per­sis­tent drought that has been last­ing for the past three years and a higher de­cline in di­a­mond min­ing and the con­struc­tion sec­tor than ex­pected. But, an im­prove­ment in com­mod­ity prices and pre­dicted rain­fall lead to be­lieve that Namibia's GDP growth is go­ing to reach 2.9% in 2017. The Bank also states in their lat­est eco­nomic out­look (March 2017) that the ho­tel and restau­rant sub-sec­tor ex­panded by 5.9% in 2016 and is ex­pected to grow fur­ther by 5% in both 2017 and 2018, which shows pos­i­tive de­vel­op­ment for the hos­pi­tal­ity in­dus­try. In ad­di­tion, Wind­hoek has an enor­mous po­ten­tial when it comes to growth in the tourism in­dus­try. Ad­ven­ture ac­tiv­i­ties along the dunes of the desert and the coast­line as well as a large amount of game have at­tracted a lot of tourists. Wind­hoek has seen a growth in tourist ar­rivals each year and var­i­ous ho­tel com­pa­nies are look­ing to ex­pand in Namibia: The South African based City Lodge Group is ex­pected to open a Town Lodge in Wind­hoek with 151 rooms in 2017, the Hil­ton in Wind­hoek went through re­fur­bish­ment, a 180-room mid-mar­ket Hil­ton Gar­den Inn ad­ja­cent to the ex­ist­ing Hil­ton in Wind­hoek is sup­posed to open this year and a mul­ti­mil­lion-dol­lar phased re­fur­bish­ment of Gus­tav Voigts shop­ping cen­tre is also sched­uled to hap­pen in the cen­tre of Wind­hoek.

Ho­tels in Wind­hoek had an oc­cu­pancy over 65% over the last three years and a RevPAR growth as well as a value growth of 9.3% in 2016. This year looks even more promis­ing with an es­ti­mated oc­cu­pancy of al­most 70% and even though new ho­tel open­ings are adding to the sup­ply of the mar­ket, RevPAR is fore­cast to grow by 16% this year.

For de­tailed anal­y­sis visit http://hvi.hvs.com/mar­ket/africa/Namib­ia_-_Wind­hoek

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