12 minute read
17 Jul 2021
10:00 am
South African tourism is struggling to see light at the end of the tunnel. Image: iStock
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Whilst local citizens are trying to see light at the end of the tunnel amidst the current pandemic and the unrest that is hampering their spirits, the South African tourism industry is on its knees and desperately needs government to believe in the sector as a crucial part of the economy.
Speaking to the media on Tuesday, 13 July 2021, the CEO of the Tourism Business Council of South Africa (TBCSA), Tshifhiwa Tshivhengwa said that the unrest could not have come at a worse time. The TBCSA champions and engages with government on behalf of the South African tourism industry.
According to Tshivhengwa, the TBCSA has been in continuous conversation with government regarding UIF and TERS. “If you are going to penalise the sector, you’ll have to allow TERS to continue,” is his argument, echoed by the industry.
He says that the UIF system has been tightened due to the occurrence of fraud, which evidently comes with new challenges. Even though UIF is not government money, government is assisting with it, but UIF should not count as relief as that is what TERS is for. Still, the UIF and TERS negotiations are not straight-forward and come with a lot of red tape, which makes the process challenging.
The recent return to Lockdown Level 4 has had a devastating effect on both the tourism and MICE industries.
According to Tshifhiwa Tshivhengwa, R5.3 billion was secured through negotiations with government, but due to the return to Lockdown Level 4 and its extension the TBCSA needs to re-enter the negotiations to include the additional days of the industry not being fully operational. “Our job now is to find the money,” he says.
People are concerned that R5.3 billion won’t be enough, especially if vaccinations are not rolled out soon enough and there is a fourth wave of Covid-19. The industry wants to support discussions in parliament, but Tshivhengwa says cabinet has the final say and that the industry is not always consulted.
“Sometimes they call you and tell you what is going to happen. Informing me is not consulting me.”
Tshifhiwa Tshivhengwa reminds the industry that anyone involved in the value chain of travel and tourism qualifies for TERS. If you are paying your employees more than what TERS will pay, your employees won’t qualify, though.
“If you paid less, TERS might come and bridge the gap.” Tshivhengwa could not confirm for how long TERS will be secured, even though COSATU requested for it to be secured until November 2021 and for government to prepare budgets for the possible fourth wave.
In addition to TERS, the president has said that licences and business permits will be extended until December 2022. The TBCSA has also been conversing with government and the banking sector to see how they can help the tourism sector with loan repayments.
Small businesses have been struggling to apply for the government loan scheme while a mere R20 billion has been distributed to businesses. Tshivhengwa says that the system has been designed in such a way that it doesn’t allow small businesses to access it fairly.
The fund is also closing soon and they are looking at how to make the fund more liberal for smaller businesses. Still, Tshivhengwa highlights the fact that it is merely a loan, which might suffocate small businesses in the long run as the debts build up. “We need some level of grant funding that will kickstart and sustain,” he says. “Our recovery is not a switch.”
Tshivhengwa says that we must remember that South Africa will always be competing with the rest of the world when it comes to tourism and events.
This is why the TBCSA has been lobbying for tourism to fall under phase two of the Covid-19 vaccination roll-out. As a country we would like to bring in a vaccinated traveller and have him feel safe.
The TBCSA said that they would pay for frontline tourism workers’ vaccinations, but this proposal had not been accepted by parliament. As South Africans aged 35 and older now qualify to register to get vaccinated, the tourism industry will merely encourage their workers to get vaccinated as soon as possible.
READ: SA records 17,489 new cases as registration for over-35s start
The TBCSA is looking at workplace vaccinations for the tourism industry, with certain tourism destinations possibly acting as vaccination stations for tourism workers in the area. “Let’s get our people to get the jab,” says Tshivhengwa. This will eventually also aid as marketing tool for the industry.
Apart from the fact that there is a gap between the private and public sectors when it comes to South African tourism, there are many other concerns for the industry too. Still, the gap comes with the challenge of not having a risk matrix to know how to respond to something like the Coronavirus pandemic or the current uprising. “We need to give the department teeth, but we need to do it through policy,” says Tshivhengwa.
The current riots could also not have come at a worst time and makes the TBCSA’s job more challenging. In addition to the Covid-19 challenge, “now you are also arguing against violence and security,” says Tshivhengwa, convinced that people who might have considered travelling to South Africa, won’t do it now. “We need to deal with this. We need to fix this, and we are going to put money into it,” he says.
David Frost, CEO of SATSA commented on the current situation in South Africa by saying: “It is axiomatic that the widespread levels of unrest and looting will have a severe impact on inbound tourism to SA. We are just beginning to see green-shoots emerge from various source markets that are able to travel to SA and this is a death knell to our forward bookings.”
Rosemary Anderson, National Chair of FEDHASA says: “South Africa currently has major challenges in trying to attract international travel back to South Africa, with our country being out of sync with our main tourism markets with regards to the vaccine roll-out and now this carnage will make it even more difficult to attract international tourism back to South Africa.”
She adds that: “This is just a lose-lose situation and as FEDHASA we urge Government to urgently stop this hemorrhaging damage to our brand SA reputation.”
The UK, US and EU countries are all critical to South Africa’s inbound tourism and the industry needs the various ambassadors to lead the charge and make sure that people are able to travel to South Africa.
According to Sue Garrett, General Manager of Supply, Pricing and Marketing at the Flight Centre Group, international travel to countries that are welcoming South Africans is possible, but it remains complex.
Remaining informed of the various destinations’ regulations and entry requirements (which are subject to change at short notice) is important and since mid-December 2020, many countries have prevented entry to passengers travelling from South Africa due to the new Covid-19 variant detected globally. South Africa is red listed by most countries, though so even though international travel is possible, it is rather complex.
Garrett says that many airlines have suspended their routes from South Africa and are operating on new, reduced schedules because of regulatory requirements.
This seems to be picking up, though. She also says that since Zanzibar and the Maldives have opened their borders and South Africa’s borders opened (before Lockdown Level 4), “we have seen that there is pent up demand for travel, especially to relaxing beach and island destinations. Indian Ocean Islands have always been a best seller in our market and it’s positive that Mauritius will be opening to South Africans soon as well.”
The Flight Centre Group says it is highly positive that South Africa’s vaccination programme has commenced. Garrett says that the world if travel is opening up again for South Africans over 60, with cruise lines allowing vaccinated passengers onboard and the Seychelles opening up to vaccinated travellers. Some countries allow vaccinated travellers and passengers while others still exclude travellers from red list countries like South Africa.
According to General Manager of Corporate Traveller, Oz Desai, there is general optimism globally about the return of business travel as per a recent report from the Global Business Travel Association.
Employees are once again willing to travel thanks to the vaccine roll-out and vaccine passports. “South Africa’s vaccine roll-out was slow to start, but we are now gaining positive momentum with those aged between 35 and 49 years now also set to be vaccinated,” says Desai.
He also says that the vaccine is vital in the recovery of business travel and in getting our top South African executives back on the road. “Vaccine passports will ease travel restrictions, and could even allow travellers to skip the unproductive quarantine requirements in many countries.”
According to Oz Desai, both the Flight Centre Travel Group and Corporate Traveller have had to innovate to support their travellers. “We have embraced new regulations, and requirements to move people safely. Strong brands are built on trust. The provide security and peace of mind.
I believe the industry at large has done this in trying times which has helped with job retention.” He says that as far as job creation is concerned, the catalyst will be large-scale successful vaccination programmes. “The more people get vaccinated, the quicker the industry will recover and create additional jobs.”
Sue Garrett says travellers who want to travel internationally should consult the experts as this is not the time for DIY travel. She also suggests that travellers keep themselves informed on the latest regulations and this can be done through the FCTG travel hub.
Travellers should also keep things flexible and expect the unexpected. Garrett says during these unpredictable times, it is worth it to pay a little extra for flexible tickets and packages and travelling with insurance is non-negotiable.
Oz Desai says that Covid-19 testing is now part of an overseas trip and that Corporate Traveller expects it to stay that way for the foreseeable future. He says that testing happens at regular intervals (before departure, day 1, day 7, day 10…) and that different destinations have different requirements. The good news is that more and more countries are relaxing restrictions for fully vaccinated travellers. In some countries like the UK though, quarantine is non-negotiable.
Desai says that even though it can seem daunting to have to quarantine in a foreign country for ten days, it doesn’t have to be. He suggests knowing what to expect ahead of time and joining an online social media community might help.
“These communities are full of helpful tips reviews and resources, as well as a place for sharing creative tips and meeting new people going through the same experience.” He also says that quarantine can actually be utilised productively to catch up on office work, Zoom calls and admin.
Desai says that today’s traveller wants reassurance and peace of mind now more than ever before. They want to be sure that their travel management company will have their backs should anything happen. Travellers want to know that they will have access to care, funding for care and on-demand assistance from professionals who can connect them with qualified medical professionals wherever they are travelling.
Travel companies need to have more flexible policies for their travellers. “It’s no longer about finding the cheapest fares, but rather the most flexible fares.”
The tourism industry has certainly had to face a lot of challenges and still is. But, amidst the pandemic and the current violence in the country, some experts still have hope.
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