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
Waste Management Corporation (WAMCO) Marks a Significant Step Towards Transforming Urban Waste Management
Waste Management Corporation (WAMCO) marked a significant step towards plastic waste management with the adoption of dedicated vehicles handed over to boost this transformation of urban waste management supported by The Coca-Cola Foundation (TCCF) and the United Nations Development Programme (UNDP) in the Maldives.
In March 2024, UNDP Maldives officially handed over a fleet of six vehicles to WAMCO, which included two electric vehicles (EVs), as part of an initiative aimed at enhancing waste management across the Greater Male’ Area (GMA). This acquisition, facilitated through the financial support of TCCF paves the way for a crucial advancement in bolstering PET collection efforts and tackling the challenge of plastic waste in the Maldives.
“This initiative marks a significant step towards boosting recycling rates and combating environmental pollution in the Maldives,” stated Pek Chuan Gan, Deputy Resident Representative of UNDP Maldives speaking at the handover ceremony. “Integrating electric vehicles into WAMCO’s fleet and improving PET recycling processes not only lowers carbon emissions but also pioneers renewable energy use in waste management. It’s a vital move for steering the Maldives towards a sustainable and renewable-powered future.”
The provision of electric vehicles marks a continuation of UNDP Maldives’ support to the Government’s vision to introduce renewable energy in key sectors such as waste management that significantly contribute to the country’s renewable energy transition ambition. By embracing clean energy solutions, such as electric vehicles in waste management practices, the Maldives can further reduce its carbon footprint and move closer to achieving its renewable energy goals.
“Utilizing eco-friendly vehicles is a pivotal change for WAMCO, signifying a major leap towards modernizing waste management in the Maldives,” remarked Mujthaba Jaleel, Managing Director, from WAMCO. “This collaboration highlights the shared commitment to environmental stewardship and the potential for such partnerships to catalyse meaningful progress in sustainability and about the positive impact these vehicles will have on our operations and the environment.”
Representatives from UNDP Maldives, WAMCO, and The Coca-Cola Foundation’s unified efforts towards a sustainable future. Photo courtesy: CIAO Advertising.
“Our commitment goes beyond just recycling; it’s about fostering a culture of sustainability,” remarked Saadia Madsbjerg, President, Coca‑Cola Foundation and VP Community Affairs. “By enhancing waste management in the Maldives, we aspire to set a benchmark for environmental stewardship.”
For The Coca-Cola Foundation, together with the stakeholders, the aim is to propel Maldives towards a future where plastic circularity is not just envisioned but actively pursued. By channelling resources and expertise into the heart of waste management, TCCF has made a sizeable contribution in enhancing and attracting investment to this crucial sector in the Maldives. This initiative is a testament to TCCF’s commitment to fostering sustainable practices and promoting the reuse and recycling of plastics, thereby reducing environmental impact, and paving the way for a circular economy.
The fleet handover event held on March 18, 2024, served as a celebration of collaboration in waste management. Representatives from UNDP Maldives, WAMCO, The Coca-Cola Foundation, government officials, and stakeholders came together to mark this significant step and reinforced their collective dedication to building a more sustainable future for the Maldives.
Coca-Cola is thrilled to unveil its official partnership with UEFA EURO 2024TM, launching an engaging promotional campaign designed to give football enthusiasts across the Maldives the extraordinary opportunity to experience the Finals live in Berlin, Germany.
This season, Coca-Cola reintroduces its iconic football-themed packaging, igniting excitement on store shelves. To join the promotion, customers need to simply open the promotional pack, find the six-digit code under the Cap (for PET bottles) or Tab (for Cans) and enter the giveaway by sending the code to 2626, with chances of winning increasing every time they send a code! Available in a variety of sizes, these packs ensure that every fan has a chance to participate.
During the promotion, six (06) couples will win a trip to experience the UEFA EURO 2024TM Final Match in Berlin, Germany with great Coca-Cola hospitality — an integral part of Coca-Cola’s initiative to deepen its connection with football fans and infuse the season with refreshing excitement. Consumers will also have a chance to win a Smartphone which is to be won every other day and branded Premia daily making it a power-packed promo.
The promotional campaign will span from May 1st to June 15th, 2024. Throughout this period, lucky draws will be conducted every other day and broadcast live on ICE TV, with the first Live Draw starting on the 11th of May 2024.
Kaushali Kusumapala, Country Director – Coca-Cola Maldives and Sri Lanka, is enthusiastic about the new partnership, stating, ” This partnership with UEFA EURO 2024TM, marks a milestone in our commitment to sports and entertainment. We’re excited to offer fans unique opportunities that showcase our dedication to enriching their experience of the tournament, one refreshing sip at a time.”.
As the tournament draws nearer, Coca-Cola will announce further exciting activities under its UEFA EURO 2024TM campaign. Fans are invited to stay engaged and participate in the ongoing promotions to enhance their chances of witnessing the zenith of European football live.
Grab a Coke, gather with friends and family, watch the UEFA EURO 2024TM matches live, and stand the chance of winning many fabulous prizes! Stay tuned to the official Coca-Cola Maldives Facebook and Instagram pages for the latest UEFA EURO 2024TM updates and promotions.
Coca-Cola has been a partner of every UEFA European Football Championship since 1988, and for more than three decades, Coca-Cola has played an essential role in the competition by uniting people and providing fans with unforgettable and innovative experiences.
The Maldives Association of Tourism Industry (MATI) held its 34th Annual General Meeting at Kurumba Maldives today, with a total of 100 members in attendance.
The day’s events began with a welcome address from the Chairman of MATI, Mr. Mohamed Umar, who also presided over the session. The agenda included an address from the Secretary General, Mr. Ahmed Nazeer, the review and approval of the minutes of the 33rd AGM, the review and adoption of the Annual Report and Financial Reports for 2023, the approval of the 2024 budget, the appointment of auditors for 2024, the welcoming of new members and election of executive board members to the two vacant positions (by-election).
In the member discussion session, the following topics were covered: the Government’s aim to reach net-zero emissions by 2023 and renewable energy generation in the Tourism Industry, new terminal of Velana International Airport and developments, employment challenges, the Industrial Relations Act and trade unions, environmental conservation and the significance of creating and executing efficient management plans for protected areas like the South Ari Marine Protected Area (SAMPA).
Following the official proceedings, the Minister of Tourism Hon. Ibrahim Faisal and the Minister of Economic Development and Trade Hon. Mohamed Saeed joined the forum. The Ministers provided remarks and engaged in a Member Q&A session. This session provided members with the chance to directly engage with the Ministers and delve into crucial industry topics. The queries focused on the Economic Outlook, forthcoming development plans and immediate challenges and issues affecting the Tourism Industry.
A video presentation was also showcased that delved into the extensive work undertaken by MATI in 2023. The video also touched upon the Tourism Industry’s performance over the past 5 years, as well as the current and projected human resource capacity of the sector.
In his closing remarks, the Secretary General highlighted the importance of collaborative efforts in addressing industry challenges and called for greater unison amongst industry stakeholders, ending with an acknowledgement of the promising start to the year in terms of arrivals.
Executive Board Members elected to the 2 vacant positions (by-election):
- Ibrahim Shareef, CEO and Managing Director of Maldives Airports Company Limited
- Renato De Olivera, General Manager of The Ritz-Carlton Maldives, Fari Islands and representative of Marriott International
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