Hospitality association raises concern over scrutiny of JV tourism model

Staff Reporter EXCLUSIVITY in Namibia’s joint venture (JV) tourism model has come under scrutiny, with the Hospitality Association of Namibia (HAN) warning that any move to question this principle could undermine investment, conservation efforts, and community livelihoods in the sector. HAN Chief Executive Officer, Gitta Paetzhold, said exclusivity remains a key component of the model, particularly in securing long-term private sector investment in rural and often ecologically sensitive areas. HAN raised concern after Namibia’s Competition Commission opted to question and scrutinise the country’s JV tourism model — a government-designed initiative introduced about 30 years ago through the Ministry of Environment, Forestry and Tourism to enable communities in remote areas to participate in and benefit from tourism. “Given the 100% dependency on private-sector investment in joint venture project development, the Ministry understands the need for certain exclusivity clauses in agreements to secure long-term investment, ensure financial viability, and protect the fragile environment,” Paetzhold said. She explained that Namibia’s communal conservancy tourism model has become a unique selling point in an increasingly competitive global tourism sector, contributing to both conservation and community development. The model was enabled through the amendment of the Nature Conservation Act of 1975 in 1996, which granted communities rights over natural resource use through conservancies. Today, more than 50 joint venture lodges and campsites operate under this framework, benefiting both local communities and wildlife conservation. Paetzhold said the success of the model lies in the partnership between conservancies and private sector investors, often structured under the “build, operate and transfer” (BOT) approach. Under this system, private partners fully fund and operate tourism facilities for a period of 15 to 30 years, while communities provide land access, support conservation efforts, and benefit through employment, training, and revenue-sharing. She added that exclusivity protects investors’ capital in high-risk, remote locations and allows for long-term planning and sustainability. “Exclusive agreements enable long-term profit forecasting for both investors and community partners, while also limiting environmental impact in sensitive areas,” she said. Paetzhold further noted that these agreements typically include lease or royalty payments of between 5% and 10% of net income, guaranteed minimum payments to conservancies, as well as commitments to training, staff development, and environmental management. While Namibia continues to position itself as a leader in conservation despite being a developing economy, tourism remains a key pillar, supported by strong collaboration between government, communities, and the private sector. However, HAN cautioned that the Competition Commission’s intervention could destabilise this model, which it described as a lifeline for many rural communities. According to Paetzhold, reports by the Namibian Association of Community-Based Tourism Support Organisations (NACSO) show that the JV conservancy system plays a critical role in income generation, employment, and sustainable development in remote areas. “It is particularly disappointing to see this intervention, which risks undermining national efforts to create jobs at a time when Namibia urgently needs employment and economic opportunities,” she said. She also pointed out that similar exclusivity arrangements exist in national parks and have not been subject to the same level of scrutiny, raising concerns within the private tourism sector. Paetzhold concluded that any disruption to the JV model could have far-reaching consequences for investment confidence and the long-term sustainability of Namibia’s tourism industry. PICTURED: Hospitality Association of Namibia (HAN) Chief Executive Officer, Gitta Paetzhold. Photo: HAN The post Hospitality association raises concern over scrutiny of JV tourism model appeared first on Informanté .