By: Justicia Shipena and Julia Heita
NWR is pressing ahead with its plans to cut salaries after suffering a heavy financial battering from the reduced hotel occupancy caused by Covid 19.
The parastatal said in a statement on Thursday said the salary cuts are part of a raft of cost cutting measures meant to breathe life into the struggling entity.
This comes after NWR, in line with the Labour Act, announced another reduction of remuneration and working hours for its employees last month.
Countless efforts have been made by the NWR to safeguard the wellbeing of its employees and its business.
The pay cuts are set to start this month for a period not exceeding three months.
In a media statement, NWR said those who criticised the salary cut, now understand the decision by NWR.
“The salary cuts are geared towards securing the livelihoods of more than 600 staff members,” said NWR spokesperson, Mufaro Nesongano.
In the statement, Nesongano lauded that a misunderstanding within media platforms were crafted saying it was an illegal act by NWR.
“It is important to note that the Labour Act makes provision for an organisation to enact a salary cut and reduce employee working hours accordingly for a period not longer than three months,” he explained.
Matthias Ngwangwama, managing director of NWR said the tourism sector was hit hard by Covid-19.
“Some other organisations were not so lucky and had to close down due to the pandemic,” said Ngwangwama.
According to the April to June 2021 Institute of Public Policy Research (IPPR) report on the tourism sector, tourism is an important industry in Namibia generating income and jobs for many people and earning the country foreign exchange, but the Covid pandemic has devastated the industry.
Statistics showed by the Bank of Namibia announced in February that the industry has lost N$3.2 billion and that 70% of businesses in the travel sector had recorded bookings below 10% of normal bookings.
The report said the encouraging news on vaccines boosted hopes for recovery, but challenges remain, with the sector expected to remain in survival mode.
Gita Paetzold, chief executive officer of the Hospitality Association of Namibia, said that the first two quarters of the year were traditionally the low season in tourism given the huge negative impact the pandemic on international travel.
Paetzold said the 19,5% occupancy achieved for Namibia provides reason for hope that the tourism revival initiative embarked on in September 2020 is showing some signs of success.
She added that the percentage from the entire Europe for the first quarter of 2021 stands at 17,8%, compared to over 42% in 2020 and 38% in 2019.
“With regards to the domestic tourism market, Namibians making use of local tourism accommodation facilities in 2019 and 2020 constituted always just under one-third, i.e. around 32% of the occupancy recorded, while this year, over 67% of all accommodation services enjoyed in the first quarter were by Namibians traveling and experiencing their own country,” she said.
Paetzold further said the Namibian tourism industry is on a long road to recovery, and the tourism sector is convinced, that with full political will, as urged by the UNWTO, commitment and cooperation, tourism revival can be achieved in the long run.
“We hope and trust that Namibia’s Tourism Revival Initiative Task Force, comprising leadership from the Ministry of Tourism, Health, Home Affairs and International Relations, as well as the NTB and NAC, will soon be able to reflect positively,” she said.
