2020
A Tough Year For Tourism T he year 2020, has been a very difficult year for the World, South Africa and the tourism sector due to COVID-19. Infection rates continue to rise at an alarming rate. Families lost their loved ones, individuals suffered from anxiety during the lockdown restrictions and most businesses had either closed or on the verge of total collapse. More than two million working South Africans lost their jobs and the economy shrunk by about 51% in the first quarter of the financial year due to lockdown restrictions. The tourism ecosystem was brought to a standstill, as there was no demand for the supply of tourism products. International and provincial borders were closed. MICE events went into a coma and mega events became less popular. Tourism businesses that used to be lively with tourist activity were empty.
Before COVIID-19, South’s Africa tourism sector predicted an increase of 8.7% in international arrivals and the revenue of both international and domestic was estimated to about R273 billion. However due to this pandemic, the sector lost billions in revenue. As at June 2020, the sector lost R68 billion in revenue and more than 600 000 tourism employees applied for relief from the Unemployed Insurance Fund. The latest positive outlook for tourism in 2020 was between January and February. The sector recorded a 2.3% increase in arrivals in January and 0.5 % increase in February as compared to the same period last year. The year 2020, was meant to focus on growing tourism’s contribution to the economy and achieve the 2030 targets as set by the President during the State of the Nation Address in February, which was to increase international arrivals
to 21 million. During the first months of lockdown, qualifying tourism businesses that were in distress received assistance through the Tourism Relief Fund. They were able to pay their overheads to keep afloat. Despite turbulent times, August month saw the reopening of some tourism activity. Minister Mmamoloko Kubayi-Ngubane made public a three-pronged Tourism Recovery plan. The focus of the recovery plan was to reignite demand, rejuvenate supply and strengthen enabling capacity for tourism products while investing in domestic tourism. Domestic tourism is the pillar of any tourism industry. Of the 28.2 million overnight trips recorded in 2018, 17.7 million were domestic trips and the domestic tourist spend amounted to R26.4 billion. On average, domestic trips lasted about three to four nights. Most of the trips were mainly for leisure, shopping and Visiting Family and Friends (VFR). Tourism’s biggest challenge in the recovery process is that revenue from key source markets will be affected because some of these key source markets form part of high-risk countries as named by the Department of Home Affairs. They include the UK, USA, and India amongst others. While tourism is known to rejuvenate the economy, it is also associated with spreading diseases and or viruses hence the sector suffers more during pandemics. Scientists have also indicated that the world has experienced major epidemics in the past but none of them had similar implications for the economy as COVID-19. With no vaccine in place, the containment of this pandemic
is of utmost priority as the world continue to face unprece dented health emergencies. Every country has to ensure that there is a balance between the health of its citizenry and economic recovery. While it has been tough, the sector has to soldier on. The tourism peak and festive season could not have time at the right time for an avid traveler to play their part in contributing towards economic recovery. Travelling enthusiasts will leave the comfort of their homes, venture out into nature, and explore our country’s beauty. Destination South Africa is amongst the most beautiful countries in the world. Her strength lies in her natural beauty, the diversity of her people, her rich history and culture and pleasant weather. While tip- toeing into nature and creating good memories that no amount can buy, one must always observe all health protocols related to COVID-19. Travelling is not just a mere form of recreation but an opportunity for self-expression and self-actualisation. It also revitalises one’s body and mind and heals the hearts and souls while restoring livelihoods, following periods of self-isolation and the loss of family members. This pandemic has given the tourism sector an opportunity to introspect and create a new normal. All roleplayers will have to ensure that the sector is able to instill confidence that South Africa is indeed safe and attractive.
December 2020
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