Competition commission faces heat in tourism probe

The Namibian Competition Commission (NaCC) faces criticism over its investigation into conservancy tourism partnerships, amid calls to probe alleged anti-competitive conduct by Namibia Wildlife Resorts (NWR).

In a letter dated 28 April to NaCC chief executive Vitalis Ndalikokule, Namibian Chamber of Environment (NCE) chief executive Chris Brown calls on the commission to halt its investigation into Ultimate Safaris and three conservancies in the Kunene region.

Instead, Brown urges the commission to investigate what he describes as the anti-competitive nature of NWR’s dominance in national parks and the operation of the Sossusvlei shuttle service.

The dispute opens a wider national question: whether Namibia’s competition laws are being applied in a way that could undermine the communal conservancy tourism model that has for decades formed part of rural livelihoods and conservation financing.

The NaCC confirms it had received the letter.

“The initiation of the investigation is an exercise of that function,” the commission says, adding that the Competition Act empowers it to investigate possible restrictive business practices across all sectors of the economy.

The current investigation stems from a complaint lodged by indigenous mining prospector Timoteus Mashuna.

He alleges that the Doro !Nawas, Sorris Sorris, and Twyfelfontein conservancies and Ultimate Safaris were engaged in anti-competitive conduct through exclusive tourism arrangements.

On 18 December 2024, the NaCC issued a cautionary notice to the conservancies and Ultimate Safaris, instructing them to stop conduct it said could infringe the Competition Act.

Rather than immediately complying, the parties sought intervention from the Ministry of Environment and Tourism. After 12 months of engagement with the ministry, the NaCC said it had decided to proceed with a formal investigation.

Ndalikokule informed Ultimate Safaris managing director Tristan Cowley of that decision in a letter dated 12 March. A similar letter was also sent to Mashuna.

Brown says the commission’s approach reflects a failure to understand how Namibia’s tourism sector operates.

“Based on the information we have received, it is clear that the NaCC does not understand the tourism industry or appreciate the severe consequences of its stance on this matter,” he says.

He argues that joint-venture tourism arrangements are rooted in the Nature Conservation Amendment Act of 1996, which created communal conservancies and gave rural communities rights to benefit from wildlife-based tourism.

“By intervening in joint-venture agreements that are not anti-competitive, the NaCC is seeking to deny rural communities their hard-fought rights to use wildlife for their benefit in the same way that freehold farmers do,” Brown says.

The NaCC rejects suggestions that any sector falls outside its reach.

“The focus of the commission is inter alia on conduct which appears to potentially stifle competition. The commission exercises its mandate in an impartial manner, regardless of the structure, conduct or performance of the industry at hand,” it says.

The commission adds that the law allows industries to apply for exemptions where they believe specific arrangements should not fall under competition rules.

“None of the players in the tourism industry have ever sought an exemption, therefore, their conduct remains open to scrutiny by the commission,” the NaCC says.

Acting NWR managing director Epson Kasuto says he was unaware of NCE’s request and could not comment directly on it.

He says NWR operates under the Namibia Wildlife Resorts Establishment Act and is mandated to manage hospitality facilities inside Namibia’s national parks.

“Our operations are conducted transparently and in accordance with the Public Enterprises Governance Act.

We maintain that our practices are focused on fulfilling our mandate to the Namibian people and do not constitute anti-competitive behaviour,” Kasuto says.

He adds that NWR would cooperate fully with NaCC if approached.

Cowley says he would comment after consulting other stakeholders.

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