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South Africa’s hotel industry has been nearly decimated by the spread of the coronavirus pandemic and the resulting blockade, according to Lee-Anne Bac, director of tourism and travel for the BDO accounting group.
Before the pandemic, tourism represented more than 1.2 million jobs in South Africa and contributed more than 8% to economic activity.
But under closure regulations, tourist establishments fall under non-essential services, and the industry has been hit hard by travel restrictions, as well as consumer concerns about the need to maintain physical distance.
The blockade will be lowered to level 4 in early May, allowing some sectors to return to production under strict regulations. But tourism is classified as one of the industries with the highest risk of transmission and the restrictions will remain in restaurants and hotels, restaurants and conference and convention centers, regardless of the level of closure.
However, even before SA entered into closure, the hotel’s average occupancy had fallen below its usual rate for the time of year. In March 2020, it was only 37%, compared to 68% in March 2019.
“The first case of SA coronavirus was reported on March 5 and the blockade started on March 27. So basically SA should have had half a month of normal operations, but that doesn’t seem to have been the case,” says Bac.
“I imagine that the April hotel occupancy rate will be practically nil, as hotels cannot operate unless they offer ‘essential services’.”
Hotel occupancy rates in 2020 had been in line with normal trends in January at 57% and February at 68%, compared to the same months last year.
The end of the “normal”
“February was the last of the tourism industry as we know it, and the last time we would have seen something like ‘normal’ for a long time,” says Bac.
She anticipates that even once the closure restrictions are lifted, it would be a while before people start taking business trips, let alone leisure travel again. Business travelers generally make up the majority of the city’s downtown hotel occupancy.
“I think we will see employees react and refuse to take business trips for a while or the companies themselves will not allow business trips, as it could be a risk for the company,” says Bac.
If the blockade continues much longer, it foresees a real bloodbath in the tourism industry: the closure of establishments and the loss of jobs for employees.
“There will be a great depression around the world and each country will try to rebuild its own tourism industry. We will not see many South Africans traveling outside the country or foreigners coming here, apart from adventure travelers,” he says.
“Until our borders are opened and the airlines fly again and there is a vaccine, people will prefer to do things locally in areas that are not crowded but that allow them to leave their homes. Our national parks will be attractive in this way and could also There should be an opportunity for smaller cities to market themselves to city dwellers who shut themselves in during the shutdown. “
Operating during blocking
However, some members of the industry are optimistic. Not all hotels closed once the closure began. Some had to remain open to serve existing guests along with those from other establishments who were unable to travel home due to various reasons. One such hotel that remained open is the Radisson Blu Hotel Waterfront in Cape Town.
“Everyone who is here has volunteered to stay here throughout the closing period, and have done everything possible to ensure that guests are cared for during their stay,” says Nicol Carelse, hotel guest relations manager. “Overall, the mood is positive.”
Clinton Thom, general manager of the Radisson Blu Hotel Waterfront, says that every precaution has been taken to ensure that guests are protected from the risk posed by Covid-19.
“We have strictly implemented health and safety measures as recommended by the World Health Organization,” says Thom. “And although guests are free to walk around the hotel and treat it as their home, social distancing is practiced at all times.”
One guest, who has since returned home to Germany, noted that it was very difficult to say goodbye since everyone at the hotel, employees and guests, had met and joined as a family.
Changing standards
Some players have adapted quickly in an attempt to meet changing customer expectations. Marriott International, which owns South Africa’s Protea Hotels by Marriott, announced on Wednesday that it will launch a multi-platform in the coming months to raise its cleanliness standards and hospitality standards and behaviors to meet new health and safety challenges presented by the environment. current pandemic.
Improved technologies will include hospital-grade disinfectant electrostatic sprays to disinfect surfaces throughout the hotel. Additionally, the company is testing ultraviolet light technology to disinfect keys for guests and associated shared devices.
In rooms, the company has also added to its rigorous protocols, which require all surfaces to be thoroughly cleaned with hospital-grade disinfectants. Marriott will also place sanitizing wipes in each room for guests’ personal use.
At more than 3,200 Marriott hotels, guests can choose to use their phones to register, access their rooms, make special requests, and request room service that will be specially packaged and delivered directly to the door without contact.
Lingering fears
But despite efforts, concerns remain for the industry. Fin24 reported Wednesday that South Africa’s tourism industry will only be able to pay 5% of its staff by the end of May if the national blockade is extended, according to a draft discussion paper prepared by the presidential office. While some trade restrictions are gradually being lifted as of May 1, travel restrictions remain in place.
President Cyril Ramaphosa has announced plans to inject R500 billion into a package of social and economic support to cope with the impact of the pandemic and the blockade. In early April, it was announced that the Tourism Department had established a R200 million fund to help keep qualified tourism companies operational. Grants have been limited to R50,000 per business.
