The TSA project was commissioned by the Government of the Republic of Namibia, through the Ministry of Environment and Tourism (MET), under the project leadership of the Namibia Tourism Board (NTB). The…
The TSA project was commissioned by the Government of the Republic of Namibia, through the Ministry of Environment and Tourism (MET), under the project leadership of the Namibia Tourism Board (NTB). The World Travel & Tourism Council (WTTC), with its research partner, Oxford Economic Forecasting (OEF) was commissioned to conduct this National Tourism Satellite Account (TSA) research project for Namibia.
The project was funded by the Embassy of Finland, ComMark Trust (funded by DFID), with support from Air Namibia, Leading Lodges and Protea Hotels Namibia.
The main purpose of this project is to fully understand the value of Travel & Tourism to the economy and job creation of Namibia. Tourism as an industry has never been reflected separately in the National Accounts, as is the case with other industries such as Fisheries, Mining, Agriculture and Transport. Thus, TSA measures the real value of Travel and Tourism to the economy.
The TSA is a comprehensive quantification of the contribution of Travel & Tourism to the economy. It’s contribution to national income, employment, etc. The TSA is an extension of the standard National Accounts that measure the size and growth of the economy (GDP) The system provides a straight forward and efficient way to deal with data input, the calculation of the contribution of tourism, and the generation of output tables.
This TSA research quantified the impact of Travel & Tourism on the economy and employment of Namibia and made projections for the growth of Travel & Tourism in the country. Furthermore, a series of policy recommendations were provided with the intention to maximize the potential of Travel & Tourism to the country’s economy, and to tap its position as a leading catalyst for economic development and job creation. It also included training for the key Namibian partners, i.e Ministry of Environment and Tourism, Namibia Tourism Board, Bank of Namibia, National Planning Commission and NEPRU which will be responsible to update and implement the TSA
A WTTC/OEF team visited Namibia in January/February this year. The team consisted of experts on Travel & Tourism policy and economics. Focus groups were conducted to obtain input regarding Travel & Tourism policy issues and available data were collected for the TSA. In addition, the team interviewed different key stakeholders. These interviews helped them to better understand the local and regional political and economic climate as well as local peculiarities and sensitivities. Feedback meetings also took place to obtain final input from stakeholders on the draft report.
In Namibia for 2006, the research forecasted that:
Demand: Encompassing all components of Travel & Tourism consumption, investment, government spending and exports to grow 8.2 per cent (real terms) and total N$9.1 billion (US$1.5 billion) in 2006. The ten-year annualized growth (2007-2016) forecast is 6.9 per cent per annum. This makes Namibia the 13th fastest growing country in the world in terms of Travel & Tourism Total Demand.
Visitor Exports: Spending by inbound international visitors is expected to total N$4.2 billion in 2006, representing 20.0 per cent of total exports.
Gross Domestic Product (GDP): Travel & Tourism’s contribution to Namibia’s economy is illustrated by the direct industry impact of 3.7 per cent of total GDP and the combined direct and indirect impact of the Travel & Tourism economy, which is expected to total 16.0 per cent in 2006.
Employment: The Namibian Travel & Tourism industry is expected to account for 18,800 jobs or 4.7 per cent of total employment in 2006. The broader perspective of the Travel & Tourism economy (direct and indirect), which includes the spill-over employment associated with industry capital investment and government spending, is expected to account for 71,800 jobs dependent on Travel & Tourism or 17.9 per cent of total employment.
In order for Namibia to realize its potential in Travel & Tourism, WTTC’s principal policy recommendations included:
- Increase understanding at the top levels of government of Travel & Tourism and its impact on the economy
- Incorporate Travel & Tourism into mainstream policies for employment, trade, investment, education and environment
- Adopt as a Cabinet Directive a Master Plan/Tourism Growth Strategy for Namibian Travel & Tourism
- Set up a private sector Tourism Advisory Council to advise the government on Travel & Tourism matters
- Instil a culture of Travel & Tourism statistics and information-based decision-making
- Assure sufficient funding to enable the Namibia Tourism Board to carry out its marketing and regulatory roles
- Explore the full range of aviation business options to develop strong, dependable and profitable air service to Namibia
- Restructure Namibia Wildlife Resorts so that the whole country can benefit from its precious resources
- Develop and communicate incentives for Travel & Tourism investment to interested parties and establish a one-stop shop for investment
- Understand that leakage is a common phenomenon of Travel & Tourism and promote linkages within the Namibian economy
- Reduce bureaucracy regarding environmental planning and management and ensure that environmental regulations are followed
- Establish a Pro-poor/Community-based Tourism Strategy for Namibia and ensure that community-based projects are financially viable
- Increase transparency and allow self-regulation of tourism product pricing
- Increase product quality through training and investment so that income generation is maintained and increased
- Increase investment in education and training for tourism and introduce incentives for the private sector to invest in training
- Prioritize product development, enhancement and extension and ensure that it is undertaken at regional as well as national level
- Make the most of Namibia’s credentials in terms of sustainable tourism development, and ensure a long-term vision
- Facilitate domestic tourism
- Increase funding for NTB marketing and promotion efforts and define a unified national and regional branding strategy
- Recognize the role that Travel & Tourism can play in developing information and communication technology, pursue an open telecommunications market and encourage web development for marketing and administration purposes
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
