Prices of hospitality establishments expected to increase in coming months – researcher
Prices of hospitality establishments are expected to increase in the coming months, owing to rising cost pressures, investment research firm Simonis Storm Securities (SSS) said Tuesday.
Higher food, fuel and utility costs will weigh on profit margins and could potentially lead to higher room rates, according to SSS Economist, Theo Klein in a statement following the release of the hospitality national occupancy rate during March.
Klein said according to an industry expert, hotels in Namibia are 23% more expensive than in Cape Town or Johannesburg.
“Cost pressures will make Namibia even more expensive compared to South Africa, hence much marketing of the country is needed to persuade tourists in visiting Namibia,” he added.
Meanwhile, a national occupancy rate of 28.6 % was recorded in March 2022, compared to 20.1% in March 2021 and 25.4% in March 2020 according to the Hospitality Association of Namibia (HAN).
“This is the highest national occupancy rate since December 2021, but far below pre-pandemic levels,” the research firm added.
Namibia’s high season (starting in July) is fast approaching and numerous establishments allude to bookings being full in the upcoming months.
