Business
With borders closed, South Africa pins hopes on cash-strapped local tourists
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
Business
Rajesh Mehta of Ooredoo to speak on hospitality efficiency at Hotelier Maldives GM Forum 2024
Rajesh Mehta, Chief Business Officer at Ooredoo Maldives, is set to deliver a presentation at the Hotelier Maldives GM Forum 2024, scheduled to take place on September 19 at CROSSROADS Maldives.
His presentation, titled ‘Managed Solutions: The Future of Hospitality Efficiency,’ will address the role of managed solutions in enhancing operational efficiency within the hospitality industry.
“As the digital partner of the GM Forum 2024, we are excited to share our insights on how managed services are transforming the hospitality industry. In today’s evolving luxury landscape, technology is at the heart of delivering personalised, seamless, and memorable guest experiences. I look forward to discussing how Ooredoo Maldives is empowering hotels and resorts with innovative ICT solutions that drive efficiency and enhance service delivery, setting new standards in luxury travel,” said Rajesh Mehta, Chief Business Officer at Ooredoo Maldives.
Ali Naafiz, Editor of Hotelier Maldives, commented on Mehta’s participation: “Rajesh Mehta’s presentation this year as well will provide valuable insights into how managed solutions can contribute to the efficiency and sustainability of the hospitality sector. The GM Forum continues to be a platform for such important discussions that impact the future of the industry.”
This year’s GM Forum, now in its eighth edition, will focus on ‘The Evolving Luxury Landscape’ in the Maldives. Industry leaders will discuss the future of luxury travel, including the new luxury traveller’s psyche, digital marketing, and sustainable practices. Topics will cover private islands, underwater experiences, and the opportunities and challenges faced by hoteliers in the country. The forum will feature diverse panels and interactive sessions, emphasising personalised guest experiences and local cultural integration. It aims to foster active participation and share innovative case studies from the luxury travel industry.
Sponsors and partners of GM Forum 2024 include:
- Ooredoo Maldives: Digital Partner (Title Sponsor)
- Bestbuy Maldives (BBM): Silver Sponsor
- Dhivehi Insurance: Silver Sponsor
- Fuel Supplies Maldives: Silver Sponsor
- Maldives Airports Company Limited (MACL): Silver Sponsor
- Manta Air: Aviation Partner
- Male’ Aerated Water Company: Beverage Partner
- Atmosphere Wellness: Wellness Partner
- Souvenir Marine: Transport Partner
- Printlab: Printing Partner
- CROSSROADS Maldives: Venue Partner
- Lights Out: Coverage Partner
- Associate Sponsors: Alia Investments, Villa Hakatha, GAGE, Wyntronix, Uniforms Unlimited and Spa Ceylon Maldives
John Bevan, CEO of dnata Travel Group, will be the keynote speaker at the event.
Etienne Ng, Regional Director for Southeast Asia at Weixin Pay; Malik Mohamed, Director of Business Intelligence at Pulse Hotels & Resorts; Mohamed Jailam, CEO and Managing Director of technology company Javaabu and Co-Founder of DhivehiGPT; and, Mohamed Mihad, Chief Commercial Officer at Maldives Airport Company Limited (MACL) will also be featured speakers.
Mohamed Mihad, Chief Commercial Officer at Maldives Airport Company Limited (MACL), will deliver a presentation at the Hotelier Maldives GM Forum 2024. The GM Forum, the largest gathering of hospitality professionals in Maldives, will take place on September 19 at CROSSROADS Maldives.
Mihad’s presentation, titled ‘Velana International Airport (VIA) and Tourism Development,’ will focus on the role of the airport in supporting and enhancing tourism in the Maldives. The presentation is expected to cover key aspects of airport operations, infrastructure developments, and future plans that are pivotal to the growth of the tourism sector in the country.
Ali Naafiz, Editor of Hotelier Maldives, commented on the inclusion of Mihad in the forum, stating, “Mihad’s presentation will be highly relevant given the central role that Velana International Airport plays in the Maldivian tourism industry. We look forward to the valuable insights he will share with the participants.”
This year’s GM Forum, now in its eighth edition, will focus on ‘The Evolving Luxury Landscape’ in the Maldives. Industry leaders will discuss the future of luxury travel, including the new luxury traveller’s psyche, digital marketing, and sustainable practices. Topics will cover private islands, underwater experiences, and the opportunities and challenges faced by hoteliers in the country. The forum will feature diverse panels and interactive sessions, emphasising personalised guest experiences and local cultural integration. It aims to foster active participation and share innovative case studies from the luxury travel industry.
Sponsors and partners of GM Forum 2024 include:
- Ooredoo Maldives: Digital Partner (Title Sponsor)
- Bestbuy Maldives (BBM): Silver Sponsor
- Dhivehi Insurance: Silver Sponsor
- Fuel Supplies Maldives: Silver Sponsor
- Maldives Airports Company Limited (MACL): Silver Sponsor
- Manta Air: Aviation Partner
- Male’ Aerated Water Company: Beverage Partner
- Atmosphere Wellness: Wellness Partner
- Souvenir Marine: Transport Partner
- Printlab: Printing Partner
- CROSSROADS Maldives: Venue Partner
- Lights Out: Coverage Partner
- Associate Sponsors: Alia Investments, Villa Hakatha, GAGE, Wyntronix, Uniforms Unlimited and Spa Ceylon Maldives
With Mihad joining the lineup of speakers and presenters, the Hotelier Maldives GM Forum 2024 will offer attendees insights into the latest developments in digital payment technologies and their applications in the Maldivian hospitality sector.
John Bevan, CEO of dnata Travel Group, will be the keynote speaker at the event. Etienne Ng, Regional Director for Southeast Asia at Weixin Pay, Malik Mohamed, Director of Business Intelligence at Pulse Hotels & Resorts, and Mohamed Jailam, CEO and Managing Director of technology company Javaabu and Co-Founder of DhivehiGPT, will also be featured speakers. Hotelier Maldives will soon announce additional speakers, presenters, and panel discussions, further shaping the forum’s agenda.
Mohamed Jailam, CEO and Managing Director of technology company Javaabu and Co-Founder of DhivehiGPT, will deliver a presentation at the Hotelier Maldives GM Forum 2024. The GM Forum, the largest gathering of hospitality professionals in Maldives, will take place on September 19 at CROSSROADS Maldives.
Jailam’s presentation, titled ‘How Artificial Intelligence (AI) will Revolutionise Travel,’ will focus on the transformative potential of AI within the travel and hospitality sectors. As AI continues to shape industries worldwide, Jailam is expected to provide insights into how these changes will influence the future of travel, with a particular focus on the Maldives.
Ali Naafiz, Editor of Hotelier Maldives, commented on Jailam’s participation, stating, “The inclusion of AI in travel discussions is crucial as the industry moves forward. We are keen to hear Jailam’s perspective on how AI will impact and drive innovation in our sector.”
This year’s GM Forum, now in its eighth edition, will focus on ‘The Evolving Luxury Landscape’ in the Maldives. Industry leaders will discuss the future of luxury travel, including the new luxury traveller’s psyche, digital marketing, and sustainable practices. Topics will cover private islands, underwater experiences, and the opportunities and challenges faced by hoteliers in the country. The forum will feature diverse panels and interactive sessions, emphasising personalised guest experiences and local cultural integration. It aims to foster active participation and share innovative case studies from the luxury travel industry.
Sponsors and partners of GM Forum 2024 include:
- Ooredoo Maldives: Digital Partner (Title Sponsor)
- Bestbuy Maldives (BBM): Silver Sponsor
- Dhivehi Insurance: Silver Sponsor
- Fuel Supplies Maldives: Silver Sponsor
- Maldives Airports Company Limited (MACL): Silver Sponsor
- Manta Air: Aviation Partner
- Male’ Aerated Water Company: Beverage Partner
- Atmosphere Wellness: Wellness Partner
- Souvenir Marine: Transport Partner
- Printlab: Printing Partner
- CROSSROADS Maldives: Venue Partner
- Lights Out: Coverage Partner
- Associate Sponsors: Alia Investments, Villa Hakatha, GAGE, Wyntronix, Uniforms Unlimited and Spa Ceylon Maldives
With Jailam joining the lineup of speakers and presenters, the Hotelier Maldives GM Forum 2024 will offer attendees insights into the latest developments in digital payment technologies and their applications in the Maldivian hospitality sector.
John Bevan, CEO of dnata Travel Group, will be the keynote speaker at the event. Etienne Ng, Regional Director for Southeast Asia at Weixin Pay, and Malik Mohamed, Director of Business Intelligence at Pulse Hotels & Resorts, will also be featured speakers. Hotelier Maldives will soon announce additional speakers, presenters, and panel discussions, further shaping the forum’s agenda.
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