GONDWANA COLLECTION: Gondwana Sees Light at the End of Dark Tunnel

With most industries now looking beyond the Covid pandemic and planning for return to normal operations, if they are not already there, tourism continues to suffer with traveller numbers down, hotel occupancy not where it was, and even travel restrictions still in place across various economies.

In Namibia, where tourism makes up a major percentage of GDP, supporting communities and livelihoods around the country, the impact is felt severely. In 2020, the industry lost around N$3.2 billion. Between September and December, the Namibian tourism industry would normally expect around 40,000 arrivals from international markets, but in 2020 that number was less than 6500.

The numbers were bleak through 2021, and the consequences dire. Many in the industry closed doors, and more lost incomes – a disaster in rural regions where jobs without tourism simply do not exist.

In December 2018, Enterprise Africa heard from Gys Joubert, Managing Director of Gondwana Collection, a Namibian hospitality business with sites around the country. At the time, the company was busy with expansion, investing in new properties, building new sites in prominent positions, driving growth in associated sectors, and doing all of this with a very Namibian heritage. It was an exciting period and should have led to the company thriving through the end of the decade and into the 2020s. But when news of a new infectious disease sweeping the world surfaced, investment slowed and projects had to be halted.

The response to the crisis was universal, and WHO advice on lockdowns and isolation was vehemently criticised by Joubert who wrote an open letter to UN Secretary General Antonio Guterres asking why, after months of harsh challenges, the guidance was not updated to allow for realistic recovery.

“It is not Covid-19, no, it is our decisions regarding how to deal with it. Billions lost from the economy; thousands of livelihoods lost. Tens of thousands of people pushed back into poverty. The small tax base that have to pay for our government, destroyed,” he wrote, asking for a swift strategy reformation.

Before, in July 2020, he penned a different note attempting to answer the question of ‘how’s it going?’. “There is almost no income – 95% of turnover has been lost. When will it return, will it return? I do not know. Costs are sliced to the bone, but we are holding on to 1102 employees. The default-mode is stress, sleepless nights and exhaustion from the immense responsibility weighing us down. The antidote to exhaustion however is not rest, it is wholeheartedness. It is to face this reality with grace, dignity, wisdom, and bravery. We promised ourselves in this crisis to absolutely maintain our pursuit of the meaningful and the true.”

The stark reality was improved slightly by October 2021 as small numbers began travelling again. Gondwana’s hotels, campsites, car hire business, and all related offerings breathed a sigh of relief – perhaps this was the turning point?

Sadly not, after breaking even for the first time in 20 months, the company and country was crushed as major global economies halted travel once more, in a fresh attempt to curb the virus spread, this time the Omicron variant.

Joubert openly and publicly criticised decisions to ban travel to Namibia, this time taking aim at UK Health Secretary, Sajid Javid. “Today, I walked into the office to deal with the bloodbath of cancellations, refunds and tears. My fellow Gondwana brothers and sisters will ask silent questions like, will we still have a job by Christmas?” he wrote in November 2021.

FALSE PREDICTIONS

Gondwana was founded in 1996 and was designed around the Namibian experience, taking visitors off the beaten track and surrounding them in Namibian culture while embracing true wilderness and nature. Pre-pandemic, the company employed more than 1100 people and indirectly impacted many more, literally supporting entire rural communities and growing into a driving force for positivity in the country.

Enterprise Africa speaks to Joubert at the start of 2022 to understand if a turnaround is possible, if all is lost, and if any of the positivity discussed in 2018 remains.

“It feels as though it wasn’t even just a different time but a different planet,” he begins.

Displaying the very human element behind this fantastic brand, Joubert states that not a single employee was retrenched, and the company has backed its creativity and drive for success as it has had to adapt at every turn to survive its biggest challenge in 25 years. 

“In one sense, it feels like so much has changed, and yet so much has not changed. Our ambition has not changed and, if anything, increased. The motivation and purpose has completely changed. The essence and substance behind everything we do has risen to a completely new level, both on a personal and professional level.

“Many people predicted that we wouldn’t make it, but we did not focus on the outside. We focussed only on each other, our purpose, and our brand. We can’t say we are out of the woods, but there is so much for us to be grateful for.

“The context around us not retrenching is important,” he adds. “It is not ego-driven, it’s all about who we employ and what we are. Our employment is rural-focussed – we are in the wide open, far-flung space of Namibia, in amongst villages. Through our communal land investment, we are the biggest investor in tourism and communal land in Namibia. We understand our impact and our responsibility. Our impact is real. It’s not employees alone, it’s whole communities that depend on us. In this context, a conversation about retrenchment goes to a whole new level.”

He laments an unfortunate scenario that plays out all too often within boardrooms of stricken companies.

“It frustrates me so much personally when companies highlight their people as their biggest asset but then when times get tough, almost overnight, that asset flies from balance sheet to the income statement and people become the biggest expense. We said that is nonsense, and we back our people and culture in the good times and the bad.”

Gondwana pushed a response of inclusivity and teamwork. Pay cuts were administered across the board, with executives taking the brunt. Alternative income channels were sought, and the local travel market was targeted. Showing true ambition, the company pushed through completion of its new lodge at the Etosha National Park, the King Nehale, and decided to make the most of the situation by building the brand in Namibia’s north.

THE WORST TIMING

“Luckily, 15 years ago, we launched the Gondwana Card programme where Namibians can access significant discounts when they visit our lodges. That is a permanent thing and didn’t change because of the pandemic. When it hit the fan and everyone was dependent on local travel, we had that foundation built already. We are deeply grateful to the Namibian public who really supported us,” states Joubert.

“Our latest flagship development, the King Nehale at Etosha – which was 80% complete when Covid hit – was opened in June 2020. We decided not to sit and wait, and it was just about the worst timing you could ever design. We argue that the timing couldn’t haven been better. It is more than just a new lodge next to Etosha National Park, it is a big investment on land that we do not own – it is a partnership with the local community. It is also our first venture into the far north in terms of cultural tourism. That is one of the last frontiers for Namibia tourism and offers an authentic experience of rich Oshiwambo culture. That also gave us access to that market and the local people there have really supported us.”

With local tourism providing glimmers, Gondwana clung to the hope that there would be light at the end of a very long and dark tunnel. Recently, travel restrictions from most European countries were lifted, and Gondwana’s bread and butter (Germany, the Netherlands, the UK, France and Belgium) began travelling internationally again. From January to December 2021, tourism in Namibia picked up by almost 40% compared to 2020 and Gitta Paetzold, CEO of the Hospitality Association of Namibia, said recently that by mid-2022 there is an expectation that tourists will flow again.

Thankfully, there is more of a sense of optimism within Gondwana and wider tourism industry. While the wonderful culture, present withing the business for years, helped make even the smallest of wins feel amazing, the past two years have been difficult and Joubert is excited to get back to what the company is famed for.

“In international travel, there was a nice increase in November. When something is taken away from you and you then get the opportunity to tap back into that, you quickly realise how grateful you are. We’ve had a lot of interaction with international tourists and agents who came to a tourist board function at a lodge outside of Windhoek, and to sit with them and talk about the opportunities here gave us real relief.

“It’s wonderful to see the pick up and it is wonderful to see how the people enjoy it. When people use phrases on social media such as ‘life changing’, that is a tremendous positive.

“We remain dependent on our traditional markets, especially the German speaking market in Europe, but we have had tremendous pick up from eastern European countries and Russia. New markets are discovering Namibia and that is wonderful for the future.”

TRADING THROUGH

Looking forward, Gondwana has developed a plan that will see it continue to innovate in 2022, placing its culture at the heart. For Joubert, retaining staff and continuing to trade during the hardest of times was an investment in the future, an investment which he is sure will pay off.  

“Ultimately, the sustainability of Gondwana will always be our number one priority and we will always support this family and this culture. We really did bend over backwards to protect each person’s livelihoods.

“I believe it was an investment and slowly but surely, we are starting to see benefits. Our culture and team ethos has never been stronger because we were able to carry the company and the company carried us. I really think it was an investment in the long-term sustainability of this company and we have a lot to be proud of.

“We dug into a hole to survive over the past two years, but we are confident. We believe we can trade out of it, and we have a conservative budget for next year which is profitable. It is time that we get back onto the horse and really challenge ourselves when it comes to finances.”

Plans for a new development at Victoria Falls we halted but this is another project which is being revived. A modern, user-friendly car rental operation is in place and is something that the company is excited about. Gondwana continues to explore alternative opportunities including management agreements where the company can manage property on behalf of separate owners but under the Gondwana brand. As the company’s curio shop offerings were reduced to nothing, Gondwana took the decision to move the concept online, selling Namibian wares to customers worldwide under the brand Narrative Namibia.

“Our car rental is something that we continue to invest in while most others have continued to de-fleet. We increased our fleet and we are working on plans to be aggressive with that in the future because the market has shifted. If you go back 10 years, the market was built around group travel and, even before Covid, there was a shift and people don’t want to travel in big buses. They want to come here and drive in what is a very safe self-drive country – Lonely Planet voted Namibia as the number one self-drive destination in the world. It gives you freedom and we have vast open spaces where you can feel alone, and the world is longing for that. The silence and the ability to self-cater is very attractive,” says Joubert.

Work in the community has also helped to build the brand over the past two years. Not a company willing to flout corporate social responsibility, Gondwana has been at the tourism industry’s forefront for many years and it stepped up to bring real impact when it was sorely needed through its Care Trust initiative.

“Given the situation, we couldn’t afford to contribute to the Care Trust – the formal vehicle for our corporate social investment,” details Joubert. “The Namibian corporate world alongside the Namibian public wowed us with tremendous contributions and donations. Even though we are in tourism and arguably one of the hardest hit companies, we continued with the work of the Care Trust and increased it. We started the Meal for Two project – a feeding programme where for each dinner we sell at Gondwana we would provide a meal for someone less fortunate. That ratio went out the window and we provided way more meals than we sold because of these amazing donations.

“Our 25-year culture has seen us doing things around sustainability and ESG on the ground long before they became buzzwords,” he adds.

This constant, significant, and tailored approach to business in Namibia is further testimony of Gondwana’s commitment to its culture and to its heritage. While easy to paint a story of a broken company with more challenges than opportunities, Joubert prefers to offer a picture of a business which is strongly placed for future growth, and one which now has a stronger culture than almost all of its rivals. 

“Going forward, we are looking beyond tourism. We have a brand that is foundational in everything that we do and we are proud of it, but it has so much to offer to our country and beyond. We know what we are good at and what we are not, but we are always on the lookout for opportunities that fit with our ethos and our values.”

And, on the back of the biggest setback in a lifetime, Joubert hints at major developments in the future. Not one to shy away from taking the big steps, there are plans in place to write a new chapter in this Namibian fairy-tale.

“We do still have plans to look at an IPO. Times are uncertain now, but we are considering this for the second half of 2023, although nothing has been confirmed. This will help us make the story even more inclusive of the Namibian public – a truly Namibian-born, Namibian-owned, Namibian-based success story that is not limited to Namibia,” he smiles.