NTB swings to N$32m surplus, clears bank debt

Staff Writer

The Namibia Tourism Board (NTB) recorded a significant financial turnaround in the year ended 31 March 2024, moving from a deficit of N$5 million in the previous financial year to a surplus of N$31.98 million.

The turnaround saw the board’s retained earnings increase from N$5.52 million in 2023 to N$37.5 million in 2024, while cash and cash equivalents rose to N$42.09 million.

According to the financial statements, NTB’s total revenue more than doubled during the year, increasing from N$35.94 million in 2023 to N$82.49 million in 2024.

Tourism levy income was a major contributor to the increase, rising from N$25.76 million to N$44.24 million. The levies are statutory payments made by registered tourism establishments.

The board also recognised N$28.24 million in other income following the prescription of balances in its levy suspense account.

The financial statements state that deposits remaining uncleared beyond the statutory limits were written off in accordance with the board’s accounting policies, resulting in the amount being recognised as income.

A further N$586 979 was recognised following the settlement of a long-running legal dispute between the NTB and the commissioner of the Namibia Revenue Agency (NamRA).

The ministry of finance settled the outstanding amount and accrued interest, while the NTB recognised the recovery of taxed legal costs.

The improved cash position also allowed the board to settle its outstanding bank debt.

NTB generated N$22.59 million in net cash from operating activities and used N$7.38 million to fully repay its secured bank loan with First National Bank of Namibia.

The loan, which had current and non-current liabilities totalling N$7.38 million in the previous financial year, had been secured by a mortgage bond over Erf 8716 in Windhoek.

Following the repayment, the board had no outstanding bank borrowings, while the mortgage security over the property was released.

The financial position was a sharp improvement from the 2023 financial year, when NTB reported a deficit of N$5.01 million and retained earnings of N$5.52 million.

The board approved the 2024 annual financial statements on 21 August 2024.

The Auditor-General, Junias Etuna Kandjeke, subsequently issued an unqualified audit opinion on the financial statements.

The Auditor-General stated that the financial statements fairly presented, in all material respects, the financial position of the NTB and complied with International Financial Reporting Standards.