Low season slows hospitality sector growth

Chamwe Kaira 

Namibia’s hospitality sector entered 2026 on a subdued but steady footing, with the traditional low season continuing to weigh on national occupancy levels.

The latest figures from the Hospitality Association of Namibia showed that national occupancy stood at 32.39% in February 2026, slightly up from 31.23% in February 2025. 

Simonis Storm said in a report that although still below the pre-pandemic February average of about 41%, the performance was broadly in line with the usual seasonal slowdown that marks the first quarter of the year. 

During this period, international long-haul arrivals typically ease after the peak European winter travel season, while domestic and regional travel remains limited, the report said. 

Leisure travel remained the main driver of demand, accounting for 95.58% of all arrivals. Business travel contributed 2.83%, while conference activity made up 1.59%.

The coastal region recorded the strongest performance nationally, with occupancy rising to 42.22% in February from 30.79% in January and 39.98% in February 2025. 

European visitors remained the key source of demand, accounting for 58.49% of all recorded arrivals. Tourists from Germany, Austria and Switzerland maintained a particularly strong presence. The coastal market also continued to benefit from business-related travel linked to ongoing oil and gas activity in the Walvis Bay and Arandis corridors.

The Southern Region followed with occupancy of 32.75%, improving from 29.36% in January and slightly above the 32.63% recorded a year earlier. Leisure travel remained the dominant source of business, with Sossusvlei continuing to anchor demand. 

Lüderitz also continued to strengthen its position as a secondary business hub, supported by rising economic activity and investor interest.

In the Central Region, occupancy dropped sharply to 31.77% from 60.34% in January, when conference and government-related activity in Windhoek had boosted accommodation demand at the start of the year. Despite the month-on-month decline, the February figure was still higher than the 28.74% recorded in February 2025, pointing to some underlying momentum in the capital’s accommodation market.

The Northern Region posted the lowest occupancy rate at 29.17%, little changed from 28.78% in January but slightly above the 27.91% recorded in February last year. The region traditionally sees its weakest demand during the first quarter, as wildlife and nature-based tourism in Etosha National Park and the wider Kunene landscape are less prominent outside the dry winter months.

Visitor origin data continued to underline the importance of Europe to Namibia’s hospitality market. European travellers accounted for 58.49% of all arrivals, followed by domestic Namibian travellers at 26.04% and South African visitors at 6.19%. 

North American arrivals contributed 3.50%, while Asian visitors made up 3.76%. The rest of Africa accounted for just 0.59%, with the Middle East and South America contributing 0.18% and 0.47%, respectively.

A closer breakdown of international arrivals showed some shifts within Namibia’s source markets. While European arrivals remained dominant, their share slipped slightly from 59.40% in February 2025 to 58.49% this year. 

The DACH market of Austria, Germany and Switzerland remained the single largest source segment at 34.76%, although this was down from 38.83% a year earlier, suggesting some cooling in German-speaking market demand.

At the same time, other European markets showed stronger growth. French arrivals rose to 4.56% from 3.42%, supported in part by favourable euro exchange rate conditions and the Discover Airlines Munich-Windhoek route.

Benelux travellers increased from 4.97% to 5.99%, while arrivals from the UK and Ireland climbed from 3.43% to 4.42%, indicating broader demand across Western Europe. Spain and Portugal also strengthened, rising from 1.02% to 1.66%, while Scandinavian arrivals edged up from 1.51% to 1.77%. Italian arrivals, however, declined from 1.98% to 1.45%.

Beyond Europe, North American visitors increased from 2.92% to 3.50%, while Asian arrivals rose marginally from 3.60% to 3.76%. South African visitors accounted for 6.19% of arrivals, up from 5.05% a year earlier, while domestic Namibian travellers represented 26.04%.

Nationally, rooms sold totalled 20 381 in February 2026, marking a 31% increase from 15 546 in February 2025. This suggested stronger underlying demand despite the subdued low-season occupancy.

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