TOURISM establishments in the City of uMhlathuze recorded an average drop of 60% in occupancy as a direct result of the Covid-19 pandemic.
Accommodation establishments such as guesthouses and bed and breakfast businesses were among the hardest hit by a poor visitor turnout owing to the restrictions to curb the spread of the coronavirus.
Business owner and former chairperson of the uMhlathuze Community Tourism Organisation, Vanessa le Roux, said although they remain optimistic for a positive shift in the coming months, it has been an extremely tough year for local businesses.
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‘Our average occupancy rate is around 70%. With Richards Bay being a corporate area, we rely heavily on midweek bookings.
‘We have companies such as Richards Bay Minerals, Mondi, South32 and many other corporates who bring in clients.
‘There are contractors and other workers who come in for the annual maintenance shutdowns, which represents the bulk of our business.
‘However, during the hard lockdown last year, no one was travelling. There were few essential service workers, but not enough to fill beds. We lost most of our corporate business during this period.
‘When travelling was reopened, many corporates planned their journeys for January, but then the Level 3 lockdown was announced in December and they had to postpone their travelling until February and March,’ said Le Roux.
‘It takes time for industry to restart their operations, which means that we might only begin to see things picking up later this month. This has also had a huge impact on job losses due to us having to retrench staff or put them on short time.’
She said the closure of beaches also had a severe impact on holiday season figures.
‘During the Easter period last year we lost all our bookings as everybody cancelled.
‘When restrictions were eased towards the end of the year, December holidaymakers arrived, but as soon as Richards Bay closed the beaches after we were declared a hot spot, people already here left and requested refunds.
‘It has been really tough and we are not coping. Smaller establishments such as guesthouses and bed and breakfast businesses have been the most affected.
‘Tourism in South Africa generates approximately R140-billion to our Gross Domestic Product (GDP). The losses will affect our economy badly,’ said Le Roux.
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