By: Dwight Links
The Hospitality Association of Namibia (HAN) is seeking clarity from the Namibian Competition Commission (NaCC) regarding an investigation into a specific joint-venture model employed in the northwestern part of the country.
Earlier this week, HAN CEO Gitta Paetzold indicated that the association, along with other partner private sector organisations, were worried about the basis of the investigation.
“Private sector organised tourism is deeply concerned about recent moves by the Namibian Competition Commission to question the country’s Joint-Venture Tourism model,” indicated Paetzold in a statement.
According to her, joint-ventures in the tourism sector are actually a preferred private sector- communal land custodian template that aims to contribute to the rural development areas of the country.
“HAN has noted with serious concern, that Namibia’s Competition Commission opted to question and scrutinise Namibia’s Joint Venture Tourism model, a unique Namibian initiative, designed by government through the Ministry of Environment, Forestry and Tourism some 30 years ago to encourage and enable communities in remote areas of the country to engage in and benefit from the tourism industry,” outlined Paetzold.
The Smoke
The NaCC responded to questions on what gave rise to the investigation and its legal basis.
Paulus Hangula, the director of Enforcement, Exemption & Cartel within the agency explained that this was based on a complaint lodged with them.
“The Commission in September 2024 received a complaint alleging restrictive agreements between one tourism operator and certain conservancies,” shared Hangula.
Hangula added that the timeline of communication between the NaCC and private sector parties stems from early 2025 to date.
“The Commission in January 2025, advised the concerned parties that the conduct has serious implications in that it is potentially anti-competitive and poses as a potential contravention of the Act [of 2003]. As such, the Commission advised the parties to, within 30 days, terminate the agreement and to confirm in writing that they have ceased with the conduct,” outlined Hangula’s response.
He added that the Ministry of Environment, Forestry & Tourism (MEFT) have been abreast of all developments on this matter.
“Several extensions were granted through MEFT, but as of today the Commission believes that the restrictive agreements by the parties still exist in the market,” stated Hangula.
This leads to the indication that not much on the matter has been publicised until HAN’s letter to the NaCC.
Legality
The Commission is mandated to promote and safeguard competition within Namibia. It is empowered, in terms of Section 16(1) of the Competition Act of 2003, to perform its functions and duties, including the investigation of alleged restrictive business practices in accordance with Chapter 3 of the Act.
Hangula indicated that the Commission may proactively investigate commercial arrangements in the economy to understand the competitive nature of a sector.
“Specifically, the Commission is empowered in terms of Section 33 of the Act, either on its own initiative or upon receipt of information or a complaint from any person, to start an investigation into any conduct or proposed conduct which is alleged to constitute or may constitute an infringement of Chapter 3 of the Act,” he explained, as the Commission resolved to initiate an investigation into the involved parties in March of this year.
The local tourism market is considered to be highly competitive, and HAN noted that this joint-venture model is providing gains in the country.
“Unique selling points are one of the key assets a destination holds to ensure a well-performing tourism industry,” added Paetzold.
“Communal-conservancy tourism is a dynamic and growing sector of the national tourism industry, helping to distinguish Namibia as a destination committed to conservation and community-development objectives,” said Paetzold.
She made this addition stating that communal-conservancy tourism was enabled by the government’s 1996 amendment of the Nature Conservation Act of 1975. This development returned rights over resource use to communities through the establishment of conservancies.
