Namibia's tourism industry is benefiting from a growing stable of international hotel brands. But the country's world-leading communal conservancy model is also creating golden opportunities for investment in the development of lodges that offer the authentic and sustainable experiences sought by tourists.
The country's investment appeal has been evidenced by the recent entry of Hilton Garden Inn and Accor's Mercure and Mövenpick properties, which have expanded a portfolio of international brands that also includes Marriott, Protea Hotels and Minor Hotels.
Investor confidence has been buoyed by a stable economy, forecasted to grow at 3.3% in 2023 and 2024, and a peaceful political climate.
Gitta Paetzold, CEO of the Hospitality Association of Namibia, told Tourism Update that the entry of international brands was bringing added reputability to the sector.
“Having iconic global brands is always beneficial for a destination, as they are supported by big budgets in global brand marketing and promotion. They bring influence, skills and quality to the destination.”
She said, however, that the country's most valuable hospitality asset was the unique style of locally-developed offerings, situated in communal conservancies and landscapes to be found nowhere else on earth.
“The charm of Namibia lies in the development of its own style, and as such we have seen the emergence of some very high quality tourism establishments. Some, such as Onduli Ridge from Ultimate Safaris, are winning global accolades and such unique projects are instrumental in bringing international focus to Namibia.”
Communal conservancy successes
The premium Onduli Ridge is located in the first communal conservancy to be established in Namibia, the 400 000 hectare Doro !Nawas Conservancy, within the ethereal desert landscapes of the Damaraland region.
Since 1990, the community conservancy model – which offers the opportunity for investment in the development of joint venture lodges and cultural and wildlife activities while supporting host communities – has now blossomed to 86 conservancies.
These conservancies are self-governing entities, legally recognised by the Ministry of Environment, Forestry and Tourism, which are incentivised to conserve and protect the environment by earning revenue from the sustainable use of natural resources.
From 1990 to 2022, community conservation contributed an estimated N$13.5 billion (€677 million) to Namibia's net national income. In 2022 alone, the conservancies facilitated the creation of 3 223 jobs and residents earned a total cash income of N$75m (€3.7m), 64% of which was generated through joint-venture tourism.
“Namibia is one of the most advanced countries in Africa in terms of organised community-based tourism and this places us at an advantage in the trend of conscious travel,” said Paetzold, pointing out that additional systems were being put in place to finance community conservancy projects.
These include the Namibia for Life (N4L) programme, the first Project Finance for Permanence (PFP) initiative for the developing world. Through the Enduring Earth collaboration, the PFP model enables government and local communities to partner with funders and non-governmental organisations (NGOs) to secure long-term management of financing for networks of conservation areas.
Implementing partners Enduring Earth have already worked with six countries, conserving more than 120m hectares using the PFP approach.
The envisaged date for the start of funding for N4L is the beginning of 2025, with an estimated requirement of US$70m.
Namibia has also implemented Wildlife Credits, an innovative approach that involves participating lodges paying a fixed amount for each sighting of an iconic species on a game drive, which is then matched by a contractual payment at national level and additionally supported by international sponsors.
“We have an open book policy for international communities who help us to apply and build a sustainable tourism community. We must be conscious of the impact that tourism has and how to do it sustainably, with permanence as the key phrase,” Paetzold said.
