Tourism’s contribution vast – report
Accounts do not fully reflect tourism's contributions
While the tourism industry reportedly makes up approximately 4% of the nominal GDP, it is thought that the true contribution is actually closer to 15% to 18%.
An apparent lack of awareness and recognition of the extensive financial and social role of tourism in Namibia is a concern for tourism associations.
While survey results show tourism’s contribution to the nominal GDP is about 4%, it is believed that the true contribution is in the region of 15% to 18% of the economy.
This is according to a study on tourism in Namibia, which the Federation of Namibia Tourism Associations (Fenata) commissioned Simonis Storm to conduct.
Under-reported
Key findings indicate that Namibia's national accounts do not fully reflect the tourism industry, as it is currently represented only by accommodation and restaurants.
This approach fails to account for the substantial contributions of transportation, logistics, and other services, as well as tourism activities in rural areas and it overlooks the industry's significant impact on conservancy development.
The report estimates that the local tourism industry has a direct socio-economic contribution to the Namibian economy and society of N$7.7 billion (3.7% of nominal GDP).
This is based on the operations of 63 companies that participated in the study.
"We estimate that the direct impact represents about half the economic activity of the industry."
Flow of revenue
Sales revenue from these 63 companies alone totalled N$2.6 billion (1.3% of nominal GDP) in 2022.
The companies reviewed employed 3 483 workers, with 99% of the workers being Namibians and 87% being hired on a permanent contract.
The total wage bill was N$292.6 million, which generated a personal income tax of N$54 million.
And an additional 41 796 jobs are directly or indirectly created or supported.
This accounts for about 3.8% of the country’s labour force and 5.7% of all employed Namibians.
Significant numbers
The total taxes paid by the companies amount to N$269.8 million, which constitutes only 0.5% of the government's total tax revenue. However, it represents a significant 45.3% of the total budget allocation to the tourism ministry for the 2022/2023 financial year.
Moreover, this sum more than adequately covers the approximate annual budget allocation of N$3 million for the Namibian Tourism Board (NTB).
"In nominal terms, the taxes paid in 2022 also exceed the largest budget allocation to the NTB ever recorded, which was N$50 million in the financial year 2014/2015."
The report confirmed that the 63 companies reviewed can foot the annual bill for the NTB’s operational expenses.
Moreover, tourism levies paid to government totalled N$9.2 million in 2022, and levies paid to the Namibia Training Authority amounted to N$2.7 million in 2022.
While survey results show tourism’s contribution to the nominal GDP is about 4%, it is believed that the true contribution is in the region of 15% to 18% of the economy.
This is according to a study on tourism in Namibia, which the Federation of Namibia Tourism Associations (Fenata) commissioned Simonis Storm to conduct.
Under-reported
Key findings indicate that Namibia's national accounts do not fully reflect the tourism industry, as it is currently represented only by accommodation and restaurants.
This approach fails to account for the substantial contributions of transportation, logistics, and other services, as well as tourism activities in rural areas and it overlooks the industry's significant impact on conservancy development.
The report estimates that the local tourism industry has a direct socio-economic contribution to the Namibian economy and society of N$7.7 billion (3.7% of nominal GDP).
This is based on the operations of 63 companies that participated in the study.
"We estimate that the direct impact represents about half the economic activity of the industry."
Flow of revenue
Sales revenue from these 63 companies alone totalled N$2.6 billion (1.3% of nominal GDP) in 2022.
The companies reviewed employed 3 483 workers, with 99% of the workers being Namibians and 87% being hired on a permanent contract.
The total wage bill was N$292.6 million, which generated a personal income tax of N$54 million.
And an additional 41 796 jobs are directly or indirectly created or supported.
This accounts for about 3.8% of the country’s labour force and 5.7% of all employed Namibians.
Significant numbers
The total taxes paid by the companies amount to N$269.8 million, which constitutes only 0.5% of the government's total tax revenue. However, it represents a significant 45.3% of the total budget allocation to the tourism ministry for the 2022/2023 financial year.
Moreover, this sum more than adequately covers the approximate annual budget allocation of N$3 million for the Namibian Tourism Board (NTB).
"In nominal terms, the taxes paid in 2022 also exceed the largest budget allocation to the NTB ever recorded, which was N$50 million in the financial year 2014/2015."
The report confirmed that the 63 companies reviewed can foot the annual bill for the NTB’s operational expenses.
Moreover, tourism levies paid to government totalled N$9.2 million in 2022, and levies paid to the Namibia Training Authority amounted to N$2.7 million in 2022.
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