Namibia’s private tourism sector has raised alarm over a recent move by the Namibia Competition Commission (NaCC) to scrutinise the country’s long-standing joint-venture (JV) tourism model, warning that the intervention could destabilise a system widely credited with uplifting rural communities and protecting natural resources.
In a letter addressed to the Commission, Gitta Paetzold, CEO of the Hospitality Association of Namibia (HAN), called for clarity on the policy basis guiding the investigation into a JV tourism operation in Namibia’s northwest.
It was announced last week that the NaCC board has launched an investigation against tourism company Ultimate Safaris (Pvt) Ltd and three conservancies in the Khorixas area of the Kunene region for anti-competition activities.
Paetzold expressed “serious concern” over what she described as an unprecedented move to question a model that has, for nearly three decades, formed the backbone of Namibia’s community-based tourism success.
Developed by the government through the tourism ministry, the JV model was designed to enable rural communities—particularly in remote conservancies—to actively participate in and benefit from tourism, she said.
At the heart of the model is a partnership between conservancies and private-sector investors, formalised through long-term agreements. These arrangements typically follow a “build, operate and transfer” (BOT) approach, where investors fully finance and manage tourism facilities for periods ranging from 15 to 30 years before eventual transfer to the community.
According to Paetzold, this structure has proven highly effective. Private partners bring capital, market access and management expertise, while conservancies contribute land, local labour and natural resource stewardship.
She said that the result has been a network of more than 50 joint-venture lodges and campsites across Namibia, generating income, employment and conservation outcomes in equal measure.
The model’s success is closely tied to Namibia’s progressive policy framework, particularly the amendment of the Nature Conservation Act of 1975 in 1996, which restored rights over wildlife and tourism to local communities through conservancies.
Paetzold said that this legislative shift laid the foundation for communal-conservancy tourism—now regarded as a hallmark of Namibia’s global tourism offering.
Central to the current dispute is the issue of exclusivity. HAN argues that exclusive rights granted to private investors within conservancies are not only justified but essential. These provisions, it said, secure high-risk investments in remote areas, ensure long-term financial viability, and limit environmental impact in ecologically sensitive regions.
“Without exclusivity, the incentive for private-sector investment in these areas simply diminishes,” Paetzold warned, adding that such agreements also guarantee steady income streams, training opportunities and job creation for local communities.
The Namibian Association of Community-Based Tourism Support Organisations (NACSO) has previously highlighted the JV model as a critical lifeline for rural populations, particularly in arid and economically marginal regions where alternative income opportunities are scarce.
Paetzold cautioned that the NaCC’s intervention risks undermining investor confidence in a system that has been carefully built over decades.
HAN further questioned why similar exclusivity arrangements in national parks have not come under scrutiny, suggesting that the current investigation may be inconsistent and potentially damaging.
Industry stakeholders fear the timing could not be worse. Namibia is already grappling with declining tourism numbers, with early 2026 accommodation statistics pointing to a slowdown in visitor arrivals. Additional uncertainty, they argue, could accelerate this downward trend.
“The joint-venture tourism model is not just a business framework—it is a proven mechanism for conservation, rural development and economic inclusion,” Paetzold said. “Any disruption to it threatens the livelihoods of thousands of Namibians who depend on tourism.”
As tensions rise, the private sector is calling on the NaCC to weigh the broader implications of its investigation carefully. At stake, they argue, is not only a globally recognised tourism model, but also the delicate balance between conservation, community empowerment and sustainable economic growth that Namibia has worked hard to achieve.
