Restructuring recommended

Expected losses could put NWR in the red

17 February 2021 | Tourism

Windhoek • [email protected]

At the end of last year, the independent analyst Rainer Ritter prepared a report as part of an investigation by the Ministry of Public Enterprises, in which he examined the profitability of Namibia Wildlife Resorts (NWR).
According to the report, NWR made a profit of N$22.45 million for the first time in 2019. The reason for this is the increase in the profitability of the accommodation in Okaukuejo, Halali, Namutoni, Sesriem, Sossus Dune and Hobas, as well as the savings of N$20.1 million in the costs incurred by the head office.
“Nevertheless, one can say with certainty that the costs for the headquarters are around 35% too high in comparison to the size of the company,” Ritter says.

Track record
The current board of directors and the management team have proven that NWR could be in the black, “but 2019 was also an extraordinary year from a tourism perspective. Tourism will not be back on the same level anytime soon,” Ritter said. “On 31 October 2019, equity totalled N$482 million, but the balance sheet will be significantly weakened by the expected loss of N$154 million at the end of October 2020.”
The expected loss of N$123 million at the end of October 2021 could, according to the report, put NWR in a very serious financial position, making restructuring inevitable.
According to documents, the NWR’s Classic Resorts contribute 67.8% to sales and approximately 74.2% to the company's profits, with Okaukuejo being NWR's most profitable accommodation, followed by Halali.
“The profits come from the facilities at Etosha, where NWR’s monopoly helps, as no private operator has access to the park.”
Gross Barmen and Hardap, on the other hand, are loss makers and are more likely to be used by the local population than by overseas tourists.
Of the NWR campsites, Sesriem, Olifantsrus and Hobas make the most profit. Sesriem, Sossusvlei and Etosha are the preferred travel destinations for tourists.
The coastal rest camps and campsites (Torra Bay, Mile 72, Jakkalsputz, Mile 108, Mile 14 and Terrace Bay) can be combined as one business unit, according to the report, with a loss of N$1.8 million. “Such a situation is unsustainable, especially the financial situation of Terrace Bay,” Ritter said. The establishment of a separate management company for the operation of the campsites along the coast with majority shareholders from the private sector is recommended.
According to Ritter, a cost-cutting strategy with clear goals must be implemented. He suggests that the Hardap and Gross Barmen NWR properties be offered individually to the private sector as a joint venture.
“NWR should consider offering Duwisib for sale, perhaps to the Gondwana Collection, as the company has a good track record and is much better at marketing historical sites than NWR.”

Similar News

 

Trusted Travel System kicks in on Saturday

6 days ago - 14 January 2022 | Tourism

The Trusted Travel System for the coordination and verification of Covid-19 results in countries that are part of the African Union (AU) applies in Namibia...

Namibië se paspoortranglys klim met sewe plekke

6 days ago - 14 January 2022 | Tourism

Windhoek • [email protected] Namibiese paspoort staan nou op 66 in die jongste Henley-paspoortindeks; sewe plekke beter as verlede jaar se 73ste posisie.Die Henley-paspoortindeks is ’n...

Tourism's silver lining all but gone

1 week ago - 13 January 2022 | Tourism

Windhoek • [email protected] you thought 2020 – the year that Covid-19 hit the world – was bad, 2021 was much worse, says Gitta Paetzold, chief...

Rebirth planned for tourism sector

1 month - 24 November 2021 | Tourism

Swakopmund • [email protected] 18 months after the corona crisis brought the tourism industry to its knees, government is in the process of developing a Tourism...

Three lucky Namleisure winners

2 months ago - 05 November 2021 | Tourism

Namibia Wildlife Resorts (NWR) ran a social media giveaway competition during the second half of October on all its social media pages. Participants had to...

Influencer programme generates great interest

2 months ago - 27 October 2021 | Tourism

Namibia Wildlife Resorts (NWR) collaborated with ten social media influencers on its first-ever social media influencer programme, to create awareness of its resorts to a...

Internal discord in the tourism sector

3 months ago - 08 October 2021 | Tourism

Swakopmund • [email protected] Namibia Travel and Tourism Forum (NTTF) and its founder Nrupesh Soni have been making headlines for months - and not always for...

Reaching for the stars

3 months ago - 07 October 2021 | Tourism

Between 24 August and 21 September 2021, the Universities of Namibia and Oxford jointly offered a free online “Introduction to Astronomy And Astrotourism” (AAA) course...

Planning a holiday? Shark Island is ready for you!

3 months ago - 27 September 2021 | Tourism

Namibia Wildlife Resorts (NWR) Limited, which initially planned to renovate its Shark Island campsite in the 2019/2020 financial year, had to postpone its plans due...

Travel local

4 months ago - 12 September 2021 | Tourism

Domestic tourism offers the main chance for driving recovery to the tourism industry, after the noticeable decline in the number of tourists in the year...

Latest News

Vyf damme kry water

12 hours ago | Environment

Elvira HattinghTeen gistermiddag om 14:50 het die Hardapdam nog sowat 289,3 m³ water per sekonde ingekry, terwyl nog drie ander nasionale damme sedert Maandag ‘n...

Am Weinberg joins Gondwana Collection

14 hours ago | Business

Come 1 February and the Am Weinberg Hotel will join the Gondwana portfolio in a management capacity. According to CEO Gys Joubert of Gondwana Collection...

Cycle lanes progressing well

1 day - 19 January 2022 | Infrastructure

The City of Windhoek in collaboration with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ Namibia) continue working towards sustainable mobility in the city.Together, the parties...

Good news for Stadio students

1 day - 19 January 2022 | Education

Stadio announced that the Minister of Justice, on recommendation from the Board for Legal Education, has pursuant to Section 5 of the Legal Practitioners Act,...

Here’s looking at 100 days

1 day - 19 January 2022 | Business

Agribank’s new chief executive Dr Raphael Karuaihe revealed his first 100-day plan at the helm of the bank.He made the announcement during his first staff...

Otjomuise flooding: CoW reacts

1 day - 19 January 2022 | Disasters

Windhoek • [email protected] houses on either side of a river running parallel to Istanbul Street in Otjomuise flooded on Sunday afternoon, with many residents involved...

A closer look at Green...

2 days ago - 19 January 2022 | Events

Prof Anicia Peters hosts a public talk on Namibia and Green Energy at the Scientific Society on Thursday, 27 January.The Namibia Green Hydrogen Research Institute...

Klein Mariana ’n baanbreker

2 days ago - 18 January 2022 | Education

Windhoek • [email protected] was sedert 2016 nog altyd deel van die Grobler-gesin se reis. Dit was toe dat hul dogter Mariana gediagnoseer is met die...

Flash floods have residents in...

2 days ago - 18 January 2022 | Local News

Windhoek • [email protected] river that runs parallel to Instanbul Street in Otjomuise flooded numerous shacks on both sides at around 15:00 on Sunday. Storm water...

Load More