Page 22 - Gondwana Collection Namibia Value Creation Report 2021

OUR MARKET IN 2021

Our recovery relies on a Bookings continue to have short lead times, with What is our outlook?
accommodation establishments indicating that most bookings
successful vaccination are made within a month of travel, especially for domestic According to the African Development Bank,
bookings. While the average length of stay for a trip to Namibia
drive has remained the same, some properties are reporting interest Namibia is projected to grow by 3.3% in 2022, on
the back of a steady recovery in financial services,
in longer stays. The tourism industry is still battling with
booking postponements. All industry subsectors indicate that tourism, retail and wholesale trade, and the mining
Namibia has a low Covid-19 vaccination rate and high levels of a large percentage of their future booking pipeline originated industries, combined with an improvement in the
vaccine hesitancy. In December 2021, Namibia had a vaccination from postponed bookings in 2020. regional and global economic environment.
rate of just over 14% on total population, translating into 20% On 6 September 2021, the government amended the entry The tourism industry’s recovery depends on
of the target population. It is short of its goal to reach a 60% requirements stating that travellers may enter Namibia with a the economic performance of major markets,
vaccination rate by the end of 2021. valid negative Covid-19 polymerase chain reaction (PCR) test Namibia’s ability to vaccinate its population,
Gondwana is supporting the fight against Covid-19. The taken seven days before arrival. With the new regulations, Namibia and the local players’ efforts to win back foreign
Gondwana Care Trust, FNB Namibia, Vaccines for Hope and the became more accessible to visitors from high-value source tourists. Many of our bookings are still provisional,
Ministry of Health and Social Services collaborated to open the markets across times zones and long-haul travellers. We saw an and new Covid-19 waves or variants may result in
nation’s first drive-through vaccination station in Windhoek in immediate positive increase in enquiries from foreign travellers. cancellations or postponements.
July 2021. Our company’s vaccination rate is more than 60%. In December 2021, Namibia was hit with a fourth wave. In light We are cautiously optimistic about our prospects
of the circulating Omicron variant, the PCR entry requirement as the global economy improves and the world
Conditions remain poor, test was amended again and reduced to 72 hours from the begins to travel once again. We expect and
time of the collection of the specimen to the time the individual plan for the low season in early 2022, with an
with a slight uptick in arrives in Namibia. accelerated recovery as of July 2022.

foreign travellers We protected our We are positive

employees, communities about the future.
While most bookings are domestic, we see a steady increase
in international bookings. The African Travel and Tourism
Association’s Survey noted a marked increase in the United and assets As always, we are
States (US) arrivals to Africa. The United Arab Emirates moved
into the top-five source markets for African accommodation Gondwana has not retrenched any employees. Although we had grateful for the
establishments. Accommodation suppliers also listed domestic to reduce salaries, every employee still received a monthly salary.
travellers, Russian and Swiss nationals as top source markets. Communities and conservancies still received the basic agreed support of our
Surveyed tour operators and travel agents reported that income. Thanks to regular maintenance, our lodges are in top
their enquiries for Africa still mainly originated from the US, condition, which will be important when tourism picks up again. We loyal friends, and
continental Europe and the United Kingdom (UK). In contrast, continue to function to our best ability, upholding the Gondwana
destination management companies (DMCs) reported that quality and keeping the Gondwana spirit intact and alive. we look forward
most of their enquiries originate from the US, Switzerland and
Germany. Our business interruption to welcoming our
The survey highlighted the ongoing impact of the pandemic
on tour operators, travel agents and DMC revenue. 44% of tour claim international guests
operators and travel agents without any clients travelling during
June 2021, and 37% of DMC respondents reported the same. once again to our
However, these figures had improved from January 2021, when We pursued our business interruption claim with our insurer
64% of tour operators reported no clients travelling. from the start of the crisis. Unfortunately, in the wake of the
business disruption caused by the pandemic, our insurer stalled beautiful country,
on honouring the agreement that we had carefully put in place.
We have turned to the high court to settle our claim and hope Namibia.
for resolution in 2022.

18 VALUE CREATION REPORT 2021 GONDWANA COLLECTION NAMIBIA 19