Namibia - Windhoek
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.
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