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Revitalised tourism and hospitality lead a path to economic recovery

Revitalised tourism and hospitality lead a path to economic recovery

By Josef Kefas Sheehama.

The global tourism industry, contributing approximately 10% to global GDP, holds immense significance. In Namibia, tourism and hospitality contribute N$7.7 billion, equivalent to 3.7% of nominal GDP, with an indirect contribution of N$24.8 billion or 12%.

Despite its importance, the industry faced severe setbacks due to the COVID-19 pandemic, necessitating strategic interventions for recovery.

The Namibian Ministry of Environment, Forestry, and Tourism wants to rejuvenate the sector by emphasizing domestic tourism and marketing Namibia as a safe holiday destination. Acknowledging the Namibian Tourism Board’s role, the Ministry’s active involvement is deemed critical in navigating the challenges posed by the pandemic.

While domestic tourism offers a potential quick recovery, it too has been significantly impacted by COVID-19. Government initiatives, including financial support, are crucial for the survival of businesses within the tourism ecosystem. Structural changes to tourist destinations addressing health requirements and visitor expectations are imperative. The crisis served as an opportunity to rethink and reshape the future of tourism. Governments must consider the longer-term implications, capitalize on digitization, support low carbon transition, and promote structural transformations for a sustainable and resilient tourism economy. The sector’s recovery, hindered by ongoing negative macroeconomic variables, necessitates a phased approach and innovation.

Domestic tourism, with the right strategy and incentives, can lead the economic recovery but its full potential remains constrained due to international geopolitics which influences consumer behaviour. This presents an opportunity to accelerate the transition to digitization, emphasizing and fostering demand for eco-friendly experiences. Namibia must ensure continuous innovation, invest in structural changes, and address environmental concerns for a robust recovery.

Product innovation, pricing reforms, and community empowerment are crucial for rebuilding the domestic tourism industry. As the world adapts to pandemic-induced changes, the hospitality industry is slowly returning. Prioritizing domestic tourism requires vigorous marketing, product development, and incentives to stimulate demand.

Furthermore, to capitalize on emerging trends, tourism and hospitality sectors should adopt technology innovations, embrace sustainability, offer unique experiences, engage social media, prioritize guest safety, and invest in wellness amenities. Staying adaptable and customer-focused is key.

As these sectors keep changing rapidly, they must partner with digital engineering workforces to provide maximum value to brands and guests. This can benefit the local communities economically and socially and facilitate interaction between tourists and locals for a mutually enriching experience.

Hence, it is irrefutable that the tourism and hospitality industries are becoming a more significant economic force and has the potential to be used as a tool for development. These industries not only drives growth, but it also raises people’s standards of living with its ability to provide significant amount of diverse employment opportunities.

The future of the tourism and hospitality sector in 2024 looks tech-savvy and eco-friendly. In addition, the industry is gearing up for a promising utilisation of technology, with early indicators and expert insights pointing to a robust recovery. This positive trend is attributed to the strength of the online reservations and self-drive segments in Namibia. Hospitality performance indicators have outperformed the broader tour operation sector, positioning online reservations and self-drive as frontrunners in the industry’s recovery and growth.

As the tourism and hospitality landscape evolves in Namibia, we must rethink what this means to us, to stakeholders, and their involvements. It is imperative that we continue to innovate as we strive to respond quickly to market needs, to elevate tourist experiences and recapture revenue to optimize returns. Whether it’s through personalized experiences, sustainability and eco-friendly practices, or the use of technology, the future holds many opportunities to innovate and excel. Take advantage of these trends and get ready to elevate to new heights.

Therefore, the key to success in tourism and hospitality is to stay flexible and adaptable to change. The tourism and hospitality industry is dynamic and ever-evolving, and by staying informed and open to new ideas, can not only survive but thrive in this fast-paced and competitive market. Hence, there are many more trends emerging and shaping the future of tourism so that those who stay ahead of the game will succeed in the long run. So, stay informed, stay ahead of the curve, and make the most of the exciting opportunities that the future holds for this sector.

In conclusion, tourism and hospitality play a crucial role in the growth of any economy. They are interdependent industries that complement each other to create an overall positive impact. Tourism helps generate revenue for local economies by attracting visitors from different parts of the world, while hospitality ensures their comfort and satisfaction during their stay.

A revamp of these industries in Namibia holds the potential to increase revenue, generate employment, and alleviate poverty. Public–Private Partnerships and community involvement are key to ensuring a thriving and sustainable future for this industry.


About The Author

Josef Sheehama

Josef Kefas Sheehama has more than 21 years banking experience serving as Manager Credit, Branch Manager and now Centralize Credit Head Office at Bank Windhoek. He holds a Certified Associate Institute Bankers CAIB (SA), Associate Institute Bankers AIB(SA), Chartered Banking Professional CHBP (SA), B Com Banking, B Com Law, Postgraduate Islamic Finance and Banking, MBA and an LLB degree. Also founder of church since 2009. He is an independent Economics and Business Researcher. Authored more than 100 articles in Economics and Business. Served on Northwest University panel (Green Hydrogen). His MBA thesis published by the International Journal of Current Research (Exploring sustainable economic challenges and opportunities).