- Special Focus
- Published Date
- Yvonne Amukwaya
- Hits: 847
As developed countries continue to be affected by global jitters, Klaus Schade, an independent economist said that Namibia can expect a decline in the contribution by the tourism industry to the 2012 GDP.
He said “although tourists from neighboring countries such as South Africa and Angola might still come to Namibia despite the prevailing global economic uncertainties, tourist numbers from Europe, the USA and other developed countries might decline or the visitors will have less money to spend.”
Schade said that as the economic unrest continues, the tourists will either stay for a shorter period of time in the country or cut down on their expenditure.
“Tourists might prefer to do self drives instead of tour operators, camping instead of lodges, self catering instead of dining in restaurants amongst other cutbacks,” he said.
Shade said that with the European Soccer Cup underway and as well as the Olympic games which will take places during the main European holiday season, this could divert potential visitors to Namibia.
But as a slight comfort, he mentions the recent depreciation of the Namibia Dollar as a positive factor saying that it will help stretch tourists’s holiday buck.
“The NAD has weakened against the USD, British Pound and Euro compared to a year ago and hence tourists from these countries get more NAD for their local currency which increases their disposable income in NAD,” said Schade.
Commenting on the cost of travel, he said that although the petrol price increment has affected transportation costs depending on the distance, the oil price has dropped and resulted in the announced price drop for petrol and diesel yet the fuel prices are still about a dollar higher then a year ago.
“Therefore higher fuel prices might not affect overall spending patterns of tourists as they already come with a certain expenditure budget.”
Meanwhile Schade said that there is a need to diversify the tourism industry to ensure a steady contribution to GDP and look at other ways to explore the possibilities of attracting conference and business tourists to the country.
He said that although such an initiative will requires investments into, for instance, a state of the art international convention centre, business tourists spend more money per day than conventional tourists and are not bound by major holiday seasons.”This could help keep a steady inflow of tourists in the country regardless of the ongoing global economic crisis. This can also help us fill low seasons, we need to ensure that we do not outprice ourselves and take into account the purchasing power of our visitors.”
Schade stressed the need for the country to market itself in other countries as well as to make tourists feel more welcome and at home so that these visitors will recommend the country to their friends.
“The tourism industry is a major contributor to employment creation since it is labour intensive. We need to invest in skills development in the hospitality and tourism sector in order to provide first class services.”
Schade said there is a need to showcase more Namibian products “from traditional food and drinks to culture and crafts in order to make our country a unique and unmistakeable tourist destination.”
- Articles In This Category
- Tourism neglected under TIPEEG – HAN (716 hits)Special FocusThe Hospitality Association of Namibia says, although the tourism industry was identified as a key sector for economic growth and job creation under...Special Focus“As an industry we have a problem with skills. I personally cannot overemphasize the need for more than just theory. Experience is immensely...Technology changes face of tourism (1023 hits)Special FocusThe Tourism Industry is facing a paradigm shift globally. Namibia is by no means immune to this trend as information technology is one of the...TransNamib - railway pioneer (349 hits)Special FocusPart 1 in a series of 2 Since the first State Railways was established in Namibia 115 years ago, rail transport has played a pioneering role in the...Old age grant and disability cover increases (756 hits)Special FocusThe Ministry of Labour and Social Welfare last week announced that the old age and disability grants have been increased by N$50 as from 1 April...Light, lighter, Yaris (2222 hits)Special FocusThe newly released Toyota Yaris will be available at Pupkewitz Toyota later this month. The car set the fuel-saving benchmark on the annual ALD...Ondangwa first new-look Total (164 hits)Special FocusThe first new look service station for Total Namibia was opened in December in Ondangwa. King’s Service Station is the first of many new and...Hake industry worried over erratic catches (971 hits)Special FocusAs hake catches have been erratic over the past three months, industry players are concerned over the impact an increase in the total allowable catch...High standards ensure meat exports (841 hits)Special FocusMeatco has consistently received top honours at the annual PMR awards, a perception-based awards ceremony where industry leaders, determined by peer...Jeep delivers dynamite in large package (86 hits)Special FocusStrong like only the Jeep brand knows how to be, aggressive like only a SRT version can be. This captures the essence of the all-new Jeep Grand...
- Related Articles
- More veggies - less water (375 hits)General NewsThe cost of fresh fruit and vegetables often is an obstacle to low income households to incorporate a sufficient amount of this crucial food in their...Food for the less fortunate through fun (392 hits)Community and CultureA stunningly beautiful Namibian studying overseas is turning her beauty title into a vehicle to help vulnerable children. Last month saw the first...Professionals less confident (300 hits)General NewsConfidence among Namibia’s graduate professionals recorded a slight decline in the third quarter of the year, according to the results of the...Less traffic infringements at coastal roads (229 hits)Special FocusThe coastal towns of Walvis bay and Swakopmund experienced fewer traffic offences during the festive season. The Erongo region is one of the regions...Less income tax soon for all (98 hits)MarketsAll of us will soon be paying less income tax compared to the past when the new tax rates announced by the Minister of Finance come into effect. All...
- Latest Articles
- Mobilising BEE power in tourism (496 hits)HeadlinesEntrepreneurship is said to be the main driver for economic growth hence the need for promoting and training entrepreneurs especially those engaged...Houses by the thousands (487 hits)HeadlinesA massive housing development programme, which will see a major facelift of the country’s informal settlements, is in its final stages of...From ECB to Energy Regulator (491 hits)HeadlinesThe transformation of the Electricity Control Board to a broader Energy Regulator is well on track with the final industry adjustments taking place....How many billions can the mattress hold? (23 hits)Editors DeskMy views on the informal economy are regularly sought by policy makers and entrepreneurs alike. The reason is rather straightforward: by all...WeatherWhat happened? Major disparities are prevalent across the three dimensional atmospheric range as revealed by the synoptic charts for surface levels:...