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With borders closed, South Africa pins hopes on cash-strapped local tourists

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CAPE TOWN (Reuters) – Lisa Krohn’s Ashanti Lodge in Cape Town – normally abuzz with backpackers from around the world – today sits largely empty, a sign of how the pandemic has crushed South Africa’s tourist industry.

“This place is like a morgue,” she said, contemplating the Victorian-era building’s deserted foyer.

Following a five-month lockdown, South Africa is easing domestic travel restrictions, allowing hotels to reopen. With international borders still closed, the government is pinning its hopes on domestic tourism, echoing a strategy being tried from Vietnam to New Zealand with mixed results.

South Africa remains among the countries hardest hit by the pandemic however. And with recession-battered consumers watching their pocketbooks, many in the sector foresee an uphill battle.

“When your tourism industry is all geared toward international tourism, domestic tourism will not compensate,” said Olivier Ponti, vice-president at ForwardKeys, which studies global travel trends. “It’s just impossible.”

Abundant wildlife, stunning scenery and renowned vineyards have made South Africa one of the world’s big long-haul travel destinations, establishing tourism as a pillar of the economy.

Last year, it welcomed over 10 million international visitors. SA Tourism, the sector’s marketing agency, was targeting 8.7% year-on-year growth in inbound arrivals in 2020 with total tourist spending projected to reach 273 billion rand ($16 billion).

But COVID-19 brought the sector to a screeching halt as governments closed borders and imposed lockdowns.

“It isn’t just a reduction in income, it’s been zero income,” said Lisa Goosen, CEO of Tintswalo, which operates high-end lodges and boutique hotels.

Of tourism businesses responding to a government survey, 64% were unable to service their debts in May and 67% could not meet fixed costs. Many businesses have laid off staff or slashed wages. Others have gone bust.

SA Tourism says nearly 440,000 tourism jobs are at risk this year. The sector is expected to lose 75% of projected revenues and 80 billion rand in foreign receipts.

A lost season?

With South Africans now permitted to travel between provinces for the first time since March, tourist-focused businesses are pivoting to domestic customers to stay afloat.

To keep the lights on, Krohn’s Ashanti Lodge had begun renting rooms long-term to locals needing cheap accommodation. Now, hotels and guesthouses like hers are rushing to put together “city break” offers.

Tintswalo has slashed prices 50% for “staycation” deals at properties like its five-star hotels in Cape Town and luxury safari lodges previously frequented by Americans and Europeans.

Restaurants on the city’s waterfront are recalling furloughed staff. Game reserves are preparing campsites.

Authorities says travel by South Africans will be key to relaunching the sector, starting with outings close to home then broader domestic tourism.

“Strong domestic demand will be critical to performance in the second half of 2020,” SA Tourism wrote in a recently published recovery plan.

In an early indication of pent-up demand, ForwardKeys analysts saw a 60% surge in domestic flight searches as the government loosened travel restrictions.

But those volumes are still down 80% from the same period last year, and current economic woes will likely dampen any domestic travel rebound.

When the pandemic struck, South Africa was already in recession. The economy is projected to shrink by 7.2% this year, and lockdown layoffs have added to a pre-COVID jobless rate of 30%.

“We are going to have a lot more unemployed people, which means there is going to be a lot less disposable income,” said Enver Duminy, CEO of Cape Town Tourism.

Local tourism was already slipping. Domestic trips dropped nearly 14% year-on-year in 2018. And domestic tourists spend much less than foreign visitors.

“Domestic travelers only are not sustainable to tourism,” said Tshifhiwa Tshivhengwa, CEO of Tourism Business Council South Africa. “We need international markets.”

When international visitors will return is anyone’s guess. Now is when they would normally book for the November-to-March high season. But it’s unclear when South Africa’s borders will reopen, and few expect a significant rebound in long-haul leisure travel when they do.

As waves crashed onto the rocks below Chapman’s Peak drive, Goosen said she’s just glad to finally reopen Tintswalo’s hotel there to guests, wherever they’re from.

“I think that the season is lost. But at least we will keep our staff employed.”

Reporting and photo: Reuters

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Feydhoo Hall opens at dusitD2 Feydhoo Maldives as new event space

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Dusit International, one of Thailand’s leading hotel and property development companies, has announced the opening of Feydhoo Hall, a landmark event venue at dusitD2 Feydhoo Maldives, redefining the possibilities for meetings, celebrations, and destination events in the Maldives.

Designed to bring scale, flexibility, and creativity to island gatherings, Feydhoo Hall represents a bold step forward in positioning the Maldives as a dynamic destination for conferences, weddings, and large-scale social occasions.

Feydhoo Hall offers a versatile event complex designed to accommodate a wide range of gatherings, from corporate meetings and conferences to weddings and social celebrations.

At its core is the 390 sqm Main Hall, capable of hosting:

  • Up to 300 guests in theatre-style setup
  • Up to 240 guests for dining and banquet-style events
  • Up to 200 guests for cocktail-style receptions
  • Up to 144 guests in cluster-round configuration

Enhancing the flexibility of the venue are additional dedicated spaces, including:

  • A 110 sqm Veranda Terrace, ideal for welcome receptions, breakout sessions, and pre-event gatherings, accommodating up to 100 guests for cocktail-style events.
  • A spacious 1,000 sqm Lawn Space, perfect for large-scale outdoor celebrations, destination weddings, and open-air events, accommodating up to 400 guests for cocktail receptions and up to 350 guests for dining setups.
  • The 55 sqm Ekugai Meeting Room, designed for smaller meetings and executive sessions, accommodating up to 30 guests in theatre or dining setup and 24 guests in cluster-round format.

Together, these integrated spaces create a seamless indoor-outdoor event experience, allowing planners to design dynamic and personalised event journeys.

True to the dusitD2 brand’s lifestyle-driven philosophy, Feydhoo Hall introduces a fresh approach to meetings and events — where productivity meets creativity in an inspiring island setting.

The venue offers flexible meeting formats designed to suit different event needs, including:

  • Half-Day Meeting Package (4 hours) — ideal for focused sessions, executive meetings, and creative workshops.
  • Full-Day Meeting Package (8 hours) — designed for immersive conferences, extended workshops, and large-scale corporate gatherings.

These thoughtfully structured packages provide planners with the flexibility to create impactful and seamless experiences, whether hosting intimate strategy sessions or dynamic full-day events.

Located just seven minutes by speedboat from Velana International Airport, dusitD2 Feydhoo Maldives combines accessibility with vibrant lifestyle energy, offering event planners and guests a rare balance between convenience and tropical escape.

With the introduction of Feydhoo Hall, the resort strengthens its position as a versatile destination — not only for leisure travellers but also for international conferences, creative retreats, luxury weddings, and large-scale social celebrations seeking something refreshingly different in the Maldives.

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BBM expands retail presence with new Hulhumalé outlet

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Bestbuy Maldives (BBM) opened a new wholesale store in Hulhumalé Phase 2 on Monday.

The outlet is located on the ground floor of Lot 20286, Nirolhu Magu, and is intended to improve access to BBM’s imported goods for residents of Hulhumalé Phase 2 and for businesses operating in the area.

According to the company, the opening forms part of its plan to expand services closer to customers in line with population growth in Hulhumalé.

With the opening of the new store, BBM’s full range of imported and distributed products will be available at the Hulhumalé Phase 2 location. These include consumer goods from international brands such as Lifebuoy, Vaseline and Unilever.

The store will also stock wholesale food products from brands including Daily, Cavin’s and Redman.

BBM has supplied goods to resorts, hotels and retail outlets across the Maldives for several years.

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Ataraxis Grand & Spa hosts integrated work-and-dive corporate retreat in Fuvahmulah

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Ataraxis Grand & Spa recently hosted a week-long, closed corporate offsite in Fuvahmulah for a US-based artificial intelligence company, highlighting the island’s growing suitability for integrated work-and-experience retreats. The retreat brought a group of 36 international professionals to the property, which was reserved exclusively for the programme.

Designed as a private company offsite, the stay combined structured daily work sessions with guided diving and beginner-friendly surf experiences, creating a balanced format that blended focused collaboration with physical reset.

A notable component of the programme was dive training and certification. During the retreat, 17 participants completed their Open Water certification, while a further six undertook the Advanced Open Water course, with training and dives scheduled alongside work sessions as part of the integrated itinerary.

Throughout the week, participants worked on-site using dedicated shared spaces supported by reliable high-speed internet, allowing meetings, informal collaboration and scheduled activities to take place within a single, uninterrupted environment. This setup enabled teams to move seamlessly between work periods and organised ocean activities without leaving the property.

Fuvahmulah’s natural and operational advantages formed a key part of the retreat’s appeal. As one of the Maldives’ largest inhabited islands, it offers immediate access to pelagic dive sites, internationally recognised shark diving and surf breaks suitable for instruction, alongside the infrastructure required to support extended group stays.

The offsite reflects a growing preference among technology and knowledge-sector teams for small-scale retreats that prioritise concentrated work environments and team cohesion over traditional conference formats. Such programmes typically involve longer stays and higher per-capita spend, aligning with sustainable, quality-driven tourism models.

The retreat also demonstrates how locally operated properties such as Ataraxis Grand & Spa are supporting this shift by delivering unified environments where accommodation, workspaces, connectivity and curated experiences operate as a single programme rather than separate services.

As organisations continue to explore alternative formats for strategy sessions, team resets and creative offsites, Ataraxis Grand & Spa’s experience positions Fuvahmulah as an increasingly viable destination for integrated corporate retreats.

Ataraxis Grand & Spa offers work-and-dive retreat programmes in Fuvahmulah that combine accommodation, dedicated workspaces, high-speed connectivity and organised diving and surfing.

Further information on retreat formats and dive-inclusive stays is available via the Ataraxis Grand & Spa website.

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