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South African tourism paid dearly due to Covid-19

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·        The latest data from South Africa revealed the massive decline in the tourism market due to the coronavirus lockdowns and consequential effects

·        Total income from the tourists at current prices in the
hospitality sector decreased by 71.8% in September 2020 compared with September 2019 according to the   Statistics

·        In October open hotels in the Free State had 56% occupancy, those in Limpopo 42%; in North West 48%; in the Eastern Cape 34%; in Gauteng 25%; in KZN 42%; in the Western Cape 21% and in Mpumalanga 34%.

The latest data from South Africa revealed the massive decline in the tourism market due to the coronavirus lockdowns and consequential effects.

Total income from the tourists at current prices in the   hospitality sector decreased by 71.8% in September 2020 compared with September 2019 according to the   Statistics SA. Decline in income from accommodation triggered the downward spiral. It declined by 72.9% on year-on-year basis in September 2020. Fewer accommodation nights were sold (down 65.3%) during the period under discussion so also the average income per person.

The largest decline was reported by hotels (-78.6%) on an year-on –year basis, followed by  guest-houses and guest-farms (-73.5%). Income from accommodation came down by 81.8% in the third quarter of 2020 compared with the third quarter of 2019. Income from accommodation has gone up by 56.7% month-on-month in September 2020 and by 98.6% month-on-month in August. The recent pick up in the income from tourism sector has been cheered by the industry although the figures are very low compared to  an year ago period.

In October open hotels in the Free State had 56% occupancy, those in Limpopo 42%; in North West 48%; in the Eastern Cape 34%; in Gauteng 25%; in KZN 42% in the Western Cape 21% and in Mpumalanga 34%. The data, therefore, shows that the provinces closer to Gauteng are doing the best.

The indications are that domestic market is picking up. Travelers
drive to  Drakensberg and along the coast, wanting to get away from city centres. In October,  open hotels in Durban’s city centre had 37% occupancy. The big loser was Cape Town, where open hotels in the city centre had only 18% occupancy. In Sandton open 4-star hotels had only 28% occupancy compared to 30% occupancy levels at 5-star hotels across the whole of Gauteng. In October due to lack of demand from business travel and almost nil international tourists, the data was disappointing, which also led to industry wide job losses.

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