Lockdown causes ‘total devastation’ to tourism & hospitality
With the country gearing to ease lockdown restrictions even further, one industry getting left behind is the tourism and hospitality sector.
According to Statistics South Africa’s Tourism Satellite Account released in 2019, the sector directly employed 740 000 in 2018. The World Travel & Tourism Council report says in 2018 the sector contributed 2.8% of the country’s real GDP while its indirect contribution accounted for 8.2% of GDP.
When SA implemented a hard nationwide lockdown in March calling for strict physical distancing and limited economic activity the sector which involves, travel, accommodation, conference centres, restaurants, bars and other leisure activities, was brought to a standstill.
Much of the industry will remain so as the country moves to Level 3 in June in order to “maintain social distancing” said President Cyril Ramaphosa in a televised national briefing on Sunday.
‘Total devastation’
In April the International Finance Corporation together with the Department of Tourism and the Tourism Business Council of South Africa released the first of three surveys looking at the impact of Covid-19 on businesses in the sector.
Among 1 610 respondents, 99% of the firms said they had been negatively affected as 58% were unable to service their debts and 54% could not cover their fixed costs in March.
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