NaCC 'misunderstanding' JV tourism model in Brandberg probe

The Namibian Chamber of Environment (NCE) says that the Namibian Competition Commission (NaCC) is misinterpreting the country’s joint-venture tourism model and undermining rural investment, following the launch of an investigation into conservancies and tourism operator Ultimate Safaris over alleged exclusive agreements in tourism areas, including the Brandberg region.

Chris Brown, NCE CEO, said the commission is overstepping its mandate and misreading how the sector operates.

“The NaCC is allowing itself to be used as an attack dog in a legal matter that has nothing to do with competition within the tourism sector,” Brown said.

This comes after the Namibian Competition Commission officially began an investigation into several conservancies and Ultimate Safaris to assess whether certain agreements granting exclusive rights may be restricting competition within the tourism sector.

The agreements allegedly prevent other operators from establishing facilities near the Brandberg area, potentially limiting market access and competition.

The Commission is examining whether the conduct of the involved parties contravenes Section 23 of the Competition Act, which prohibits arrangements that substantially lessen competition.

Brown called on the NaCC to reverse its decision to investigate the matter between Timoteus Mashuna and Ultimate Safaris and its partner conservancies, and to engage with the Ministry of Environment, Forestry and Tourism (MEFT) to better understand JV tourism arrangements.

Unfavourable environment

In a letter dated 28 April, addressed to NaCC CEO and Secretary Vitalis Ndalikokule, and seen by Network Media Hub (NMH), Brown said it is already difficult to attract tourism investment into communal areas due to an unfavourable investment environment, additional institutional requirements, and marketing challenges.

“Rather than ‘promoting and safeguarding competition in Namibia’ as per its mandate, the NaCC seems more interested in stifling economic growth and job creation in remote rural areas that are gripped by poverty,” he said.

He warned that the regulator’s intervention reflects a fundamental misunderstanding of Namibia’s joint-venture (JV) tourism model and could have far-reaching consequences.

“By intervening in such a matter, the NaCC is displaying its ignorance of the JV tourism model in particular and its disregard for potential negative impacts on the tourism industry, on private sector investment into Namibia, and on the livelihoods of rural communities who have invested decades managing and building their wildlife resources and partnerships to obtain benefits from tourism,” he said.

He urged the commission to investigate what he termed the anti-competitive nature of the NWR’s monopoly in national parks and the Sossusvlei shuttle service.

The Namibian Chamber of Environment said it represents the environmental civil society sector and raised concern that the investigation could have wider implications for communal conservancy tourism and rural livelihoods.

The Hospitality Association of Namibia (HAN) also reacted in a letter dated 21 April, questioning the basis of the NaCC’s decision and warning against scrutiny of Namibia’s joint-venture tourism model, which it described as a unique initiative developed to enable rural communities to benefit from tourism.

HAN said communal-conservancy tourism is a key part of Namibia’s tourism identity and is driven by partnerships between conservancies and private-sector operators, under agreements guided by the Ministry of Environment, Forestry and Tourism.