Namibian tourism industry is too precious to perish

Anever-seen-before happening is unfolding. Both the developed and developing world, the rich and the poor, people of all races and nationalities are being affected. Covid-19, since 19th December 2020, and Namibia since 13th March 2020, has been troubling the earth. There was a glimmer of hope during the latter half of 2020 that the virus is about to be thwarted. However, going into the 21st year of the 21st century, Covid-19 is getting deadlier. Transmuted strands of Covid-19, developing almost on a daily basis and deadlier than the previous strands, are no longer news material.

Of all economic industries, the tourism, aviation and leisure industries are, arguably, the hardest hit. This is, largely, due to these industries’ reliance on the movement of people. The universal tourism industry is, to put it mildly, at its heels, not knees anymore. Which raises questions: How can one of the industries at the centre of global economies be resuscitated? Should we all fold our hands and watch helplessly the tourism industry disappears before our own eyes?

More about the local tourism industry

The Tourist Statistical Reports periodically issued by the Ministry of Environment, Forestry, and Tourism consistently shows consistent increase in foreign tourist arrivals. In a recent release by First Capital Namibia, Namibia Economic Transformation Journey:1990-2020 (2020), tourism is put forward as the largest sector within the service sector in terms of employment creation and output. The tourism sector is said to employ around 7% of the total Namibian labour force and is believed to contribute 15% to the Namibian Gross Domestic Product.

It is one of the fasted growth sectors, albeit pre Covid-19, and ostensibly employs more people than sectors such as mining, agriculture and manufacturing. Yet, despite the casual acknowledgements, corresponding actions have not matched pronouncements about the potential and importance of the Namibian Tourism Industry. The industry is still seen as a stepchild of other economic industries.

In addition, there seems to be a widely held view that the tourism industry is an industry exclusive to the rich and highly lucrative, with many players in the industry secretly holding large sums of money in foreign bank accounts, illegally funded from their tourism operations, and thereby depriving the country of resources by evading foreign exchange regulations and taxes.

However, Bank of Namibia, in a report titled Report Foreign Exchange Abuse in the Tourism Industry, December 2019, concluded that “there is enough evidence to confirm that illegal leakages in the tourism industry do not take place on a large scale”.

The Namibian Tourism Industry is too important to be neglected because of some of the above accusations. If the tourism industry is well managed, and inclusive, it can be a renewable asset that can make significant contributions to the Namibian economy, albeit post Covid-19.

The Namibian Tourism Industry can be a secret weapon of the Namibian Economy. The Namibian Tourism sector is too valuable to perish and must be resuscitated. But how?

Acceptance and collaborative efforts

Customarily, the battle of the mind is the most difficult. As such, the initial step towards resuscitating the tourism industry can, perhaps, be to gently accept what Covid-19 has caused, or what it is causing. Denialist and blame game tendencies are not for now. Covid-19 is here.

The virus has caused irreparable damage hitherto, but (new) life should go on. Going forward, believing, and having courage, that a brighter future is just on the other side of a wall is essential. Boldness, persistence and creative courage, so as to create new better realities, are what is now imperative. Moreover, respectful and candid engagement of all stakeholders is utmost.

Covid-19 has clearly taught the need for improved collaborative efforts. Unilateralism (exclusivity) cannot work. Multilateralism (inclusivity) might work. It requires listening to others with honesty, which means establishing wellcomposed industry think-tanks, not too small to exclude others but not too big to limit effective decision making.

Resourcing the tourism industry

The Namibian Tourism Industry needs to be resourced greatly. Without a doubt, the tourism and aviation industries are the hardest hit by Covid-19. Equally, the tourism and aviation industries should be the first to be meaningfully assisted by governments and institutions.

The question is, for instance, what assistance was given to the tourism and aviation industries in Namibia thus far? Little. In theoretical terms yes, but not in practical terms or daily-livid experiences.

With the on-going worsening of the global Covid-19 situation, the time is now to assist and resource the Namibian Tourism Industry.

In an African context, the tourism sector is the heartbeat of economic activities. Therefore, the sector should be supported through genuine cash flow subsidies, sectorspecific interventions by the government and bank overdraft facilities. It should be remembered, that these are times of “war”.

Thus, responses should also be “war-like”. For instance, how can it be demanded from a company to provide “6-month” cash flow projections in the current times, knowing well that international borders are closed and, thus, no tourists are arriving? Different strategies, and mindsets, are needed in current times. It is also desired from the insurance and re-insurance industries to expedite business interruption insurance claims so as to offer the needed assistance to the Namibian tourism industry. Surely, Covid-19 was, and is, an insurance-claimable incident.

New wine in new bottle skins

There is now a greater need to turn adversity (Covid-19) into new solutions. Pouring new wine (post Covid-19 realities) into old bottles (pre Covid-19 realities) will not work, for the new wine will burst the bottles. New wine signifies developing new solutions in, and for, the tourism industry.

This includes revisiting and developing source markets, revising pricing models and creating new products. For instance, the African Continental Free Trade Area (AfCFTA), that came into effect on 1 January 2021, denotes new focus and emphasis on African Tourism.

Historically, most of Namibia’s tourists came from Europe, primarily Germany, and from various alternative source markets such as the North American, Australian and, recently, Asian markets.

Covid-19 has clearly showed that reliance on foreign markets is not prudent, nor sustainable. Thus, efforts to promote African Tourism within the context of ACfFTA should be enhanced and prioritised.

Of course, practical complexities in doing business in Africa are generally acknowledged. However, stories about Africa are quite often negatively portrayed and stereotyped. There might be a silver lining in the fact that Africa is not hugely affected by Covid-19. For instance, it is believed that about 2.8 million Covid-19 cases have been reported in Africa whereas Asia reported 18 million, the Americas 37 million and Europe 26 million cases as at 31 December 2020.

Yet the advantage of Africa’s low Covid-19 rates is habitually lost in the pervasive generalisations and stereotyping, and Africa has just to go with the “flow”. The time might be now to grasp on a plus point of fewer Covid-19 cases so as to give practical meaning to the intents and purposes of AfCFTA, inclusive of promotion of intraAfrican tourism.

It is time for Africans to tour their continent and explore the indescribable beauty of their continent’s fauna and flora wonders: Mauritius, Victoria Falls, MasaiMara, Kruger National Park, Table Mountain, Serengeti Park, Etosha National Park – the list is endless. By so doing, intra-trade will be enhanced and the continent will become competitive, securing the future of its population, especially its youth. Poverty and financial limitations in Africa should no longer be used as excuses.

The continent’s emergent strong middle class and the “elites”, who instead of spending their resources within the African continent, exports money to foreign countries and cities, such as Dubai, Continental Europe and America, should invest resources in Africa.

But that will come about if the tourism interlocutors and operators create new and attractive tourism services and products for, in, through, and with Africa.