Investment in the Tourism Industry in Namibia:

A private sector perspective

Jacqueline W. Asheeke, Chief Executive Officer

fenata@mweb.com.na

• Non-profit; Founded in 1992

• Members

• Role of Fenata

Google: Namibia Quiver Tree

Any serious discussion of tourism in Namibiamust have the flavor of tourism in Namibia…..

Just a quick taste to get us started……

Google: Namibia Food

Courtesy Grootberg Lodge

All other photos –Google: Namibia Culture

Courtesy of TASA

Courtesy of Wolwedans

Photos Courtesy of Fenata Members

Courtesy of SandyAcres Safaris

Courtesy of various Fenata members andGoogle: Namibia Elephants

Courtesy of Wolwedans

Google: Namibia Birds

Courtesy of Wolwedans

You cannot manage what you cannot measure!

• 2006 Worldwide Tourism Receipts - $735 billion and growing

• Tourism in Africa topped $24 billion in receipts.

• Africa has had the

strongest relative increase in receipts in the world at +10%. Courtesy of Grootberg Lodge

In Namibia – tourism is a growth sector

In 1993, over 250,000 tourists arrived;in 2006, arrivals increased to over 833,000.

In 2006, Tourism generated N$5.2 Billion and 71,000+ jobs

Google: Namibia Cheetahs

Google Namibia Rhinos

Snapshot of Namibia Tourism Stats

continued….Namibia is the 4th fastest growing tourism economy in the world.

Realization of these growth figures on an annual basis can attract foreign and local investment.

Tourism Growth = Investment Opportunities

Google: Namibia Sable

But, what comes first, the Ostrich or the Egg?

Google: Namibia Ostrich

Google Namibia Giraffes

Which comes first:

Targeted and strategically planned investment which could lead to increased touristarrivals and demand for tourismproducts,

OR

Reliance on the steadily increasing tourism arrivals and product demand to stimulate targeted and strategically planned investment?

Building lodges are the most common tourism investment, but not necessarily the only way to obtain a satisfactory profit. All photos courtesy of Ed Humphrey

Mid-market or 5-staraccomodation?

Namibia offers a mix. Balance is the key.

Upper market is developing; but mid-market is bread-and-butter.

Tourists’ service demands ARE changing. Industry mustshift to compete.

Skills transfer needed to caterfor changing tourist demands

No matter how beautiful or luxurious, no one comes on holiday just to stay in a hotel or lodge.

They come to enjoy NAMIBIA!

Activities for tourists provide other areasfor possible investment.

Google: Namibia Cheetahs

Overseas FDI tends to focuson up-market tourism products in or near iconictourism locations;

Regional and local tourism investors tend to considerthe 'undiscovered', rural or lower/mid-market products.

Role of Governmentin tourism investment

Tourism is private sector driven;

Government plays the key role of setting the climate for the profitability of the sector.

Google: Namibia Lions

Google: Namibia Kolmanskop

Leveling seasonalityis critical to attractingFDI in Namibia’stourism sector.

Courtesy of Canyon Lodge

Are there targeted tourism investment opportunities in Namibia?

YES!

Consider these examples:

•The Cruise Ship Industry

• King Nehale Gate

•Roadside motels + all purpose tourism centers

Continued…..

•If MCA funding, then JVs

•Self-Drive vehicles and large tour buses

•Local production oftourism equipment and products

FENATA Recommendations

• Tourism Investor Road Map

• TSA

• “Tourism Investor’s Shopping List”

Fish River Canyon – Courtesy of Gondwana

RecommendationsContinued….

4. Investment Zones

5. Government supported Tourism awareness campaign

6. Increased NTB budget

Google: Namibia Cats

So, what does come first:the Ostrich or the Egg?

One answer to consider–

In Namibia, we love to eat meat, but many of us also like eggs forbreakfast.

It’s the balance between the two that leads to good nutrition.

Google: Nambia Meat and Eggs

In conclusion, tourism requires strategic investment in targeted areas to respond to demand-driven realities; and for balance, the tourism sector must grow the market and diversify existing products to attract more visitors.

More tourists = greater ROI from tourism.

Google: Namibia Dolphins and Fish

Thank you.

Google: Namibia leopard