(6 minutes read)
· The report has focused on how sales and income of four sectors viz; motor trade industry, tourist accommodation, transport industry and food and beverage sectors have declined
· The only silver lining is the slight recovery during the month of June preceded by two worst months in April and May
The statistical surveys published by Statistics SA brought out in sharp focus devastation of economic activities and how people’s ability to earn a living has gone down during the lockdown. The report has focused on sales and income of four sectors viz; motor trade industry, tourist accommodation, transport industry and food and beverage sectors. The only silver lining is the slight recovery during the month of June preceded by two worst months in April and May.
Tourism and hospitality sector suffered the most during the lockdown days in terms of the number of bed nights sold by hotels, guest houses and caravan parks. In March 2020, this had declined nearly 40% compared to the same period a year ago, followed by near complete destruction in April and May, with bed nights sold declining by 97% against a year earlier, as occupancy rates fell to less than 2%.
Total income in the tourism accommodation fell f from normal levels of around R2.2 billion per month to less than R55 million in April and R74 million in May. Small businesses in the sector were hit most with some enterprises reporting nil income.
In the motor industry sales fell by 49% , nearly R82 billion lower, during the three months – April to June, compared to the same quarter in the previous year, which translates to a loss of R1 billion every trading day. In April, the turnover fell by 84% compared with April 2019, declining from R54 billion to less than R9 billion. In the resale segment of the car, the drop was over 90%. The employment loss in the sector was staggering.
Stats SA says in the food and beverage sector total sales declined by nearly 96% in April and May at current prices. Adjusted against inflation, the loss would be more during the period.
Income from freight transportation came down by 26.8% in the second quarter of 2020 compared with the second quarter of 2019 due to a fall in the tonnage of freight hauled.. The number of passenger journeys decreased by nearly 66% in the past quarter compared with a year ago period. The surveyed enterprises under transportation included railway transport of passengers and freight and other scheduled passenger land transport (such as urban, suburban and inter-city buses), as well as metered taxis, rental of cars with drivers and freight transport by road. Freight transport volumes dropped by nearly 40%.
Stats SA is scheduled to bring some more reports shortly, which most probably will have to reveal the same grim story about the economic pick -up.
