More vocational training needed in tourism - study
Greater importance and recognition should be given to vocational training and work-integrated learning so that skills needed by the tourism sector can be met.
This according to a Simonis Storm study on tourism in Namibia, commissioned by the Federation of Namibia Tourism Associations (Fenata), which said this will also allow for careers in tourism to become something young individuals aspire to.
Vocational training would not only need additional funding from central government, but also requires better management of training centres across the country, it said.
While survey results show tourism’s contribution to the nominal gross domestic product is about 4%, it is believed that the true contribution is in the region of 15% to 18%.
The report said the employment capability of the local tourism sector has proven to be very impactful.
“This is supported by our survey results and even government statistics would support this notion. The last official unemployment rate provided by the Namibia Statistics Agency is 33.4% in 2018. We estimate that unemployment is more likely closer to 40% currently.”
Employment absorption
Given Namibia’s high unemployment rate, it naturally makes sense to focus job creation efforts and initiatives in an industry that has great employment absorption capabilities such as the tourism industry, it said.
“Not only can tourism assist in addressing high unemployment, it can improve overall economic activity if tourism is prioritised and job creation takes place.”
Furthermore, addressing concerns raised by the private sector will go a long way to improve efficiencies, profits and jobs in the tourism sector, the study found.
It surveyed 63 companies and found that they employ 3 483 workers (49% male and 51% female), with 99% being Namibians and 87% hired on a permanent contract.
The total wage bill for these workers was N$292.6 million, which generated personal income tax of N$54 million.
From the 3 483 workers at these 63 companies, 41 796 additional jobs are directly and indirectly created or supported based on the social accounting matrix, the study said.
This is about 3.8% of the country’s labour force and 5.7% of all employed Namibians.
This according to a Simonis Storm study on tourism in Namibia, commissioned by the Federation of Namibia Tourism Associations (Fenata), which said this will also allow for careers in tourism to become something young individuals aspire to.
Vocational training would not only need additional funding from central government, but also requires better management of training centres across the country, it said.
While survey results show tourism’s contribution to the nominal gross domestic product is about 4%, it is believed that the true contribution is in the region of 15% to 18%.
The report said the employment capability of the local tourism sector has proven to be very impactful.
“This is supported by our survey results and even government statistics would support this notion. The last official unemployment rate provided by the Namibia Statistics Agency is 33.4% in 2018. We estimate that unemployment is more likely closer to 40% currently.”
Employment absorption
Given Namibia’s high unemployment rate, it naturally makes sense to focus job creation efforts and initiatives in an industry that has great employment absorption capabilities such as the tourism industry, it said.
“Not only can tourism assist in addressing high unemployment, it can improve overall economic activity if tourism is prioritised and job creation takes place.”
Furthermore, addressing concerns raised by the private sector will go a long way to improve efficiencies, profits and jobs in the tourism sector, the study found.
It surveyed 63 companies and found that they employ 3 483 workers (49% male and 51% female), with 99% being Namibians and 87% hired on a permanent contract.
The total wage bill for these workers was N$292.6 million, which generated personal income tax of N$54 million.
From the 3 483 workers at these 63 companies, 41 796 additional jobs are directly and indirectly created or supported based on the social accounting matrix, the study said.
This is about 3.8% of the country’s labour force and 5.7% of all employed Namibians.
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