In an analysis for the mining sector for November 2020, the mining composite index declined 16.2% when compared to the preceding month, and 7.3% for November 2019, respectively. According to trade statistics for November 2020, released yesterday by the Namibia Statistics Agency (NSA), the reduction in the index is due to the production of all minerals that were down except for diamond that registered an increase in output.
Diamond production index for November 2020 posted 85.8 basis points increasing by 9.4% and 1.8% when compared to October 2020 and November 2019, respectively. The increase in production was mainly driven by marine operations.
In November 2020, the volume of diamonds produced stood at 126 917 carats whereas in October 2020 production stood at 116 001 carats while 124 646 carats were produced in November 2019.
The hotels and restaurants sector, which serves as a proxy to the tourism sector, and remains a priority sector under the fifth national development plan has been deteriorating since the Covid-19 pandemic started its effect early last year.
The contribution of hotels and restaurants to gross domestic product (GDP) in the second quarter of 2020 was 1.1% compared to 0.8% recorded in the preceding quarter whereas a 2.4% share to GDP was registered in the corresponding quarter of 2019.
“The index for room occupancy rate recorded 23.7 basis points in November 2020 downward by12% and 77% registered in the previous month and November 2019, respectively,” reads the report.
For beds occupancy rate, the index stood at 27 basis points during November 2020 downward by 13.6% recorded in the previous month, and 77.2% in November 2019.
When compared to October 2020, the report stated that the declines recorded for both room and bed occupancy rates were mainly attributed to the prevailing and strict measures around the world to curb the spread of the Covid-19.
Furthermore, regional and international arrivals recorded an index of 5.5 basis points in November 2020, down with 51.6% and 94.9% registered from the previous month and November 2019, respectively.
For departures, the regional and international for November 2020 recorded downward movements by 4.7 basis points and by 41.4% and 96.1% registered when compared to October 2020, and November 2019, respectively.
The explanation, the agency said, lies in the declines observed in both arrivals and departures mainly attributed to the travel restrictions across the world and the gradual re-opening of main points of entry into Namibia (air, land, and sea) that were put in place in response to the Covid-19 pandemic.