It should come as no surprise that the Covid-19 pandemic and subsequent lockdown restrictions have had a devastating impact on the South Africa tourism sector. Recent data from the tourism industry for December show just how much of an impact those restrictions had, especially in the Western Cape.
According to the latest tourism data provided by the Western Cape Government, almost all the top attractions in the province saw a 60% drop in visitors over the peak tourism season.
‘This data confirms the unfortunate state of the tourism and hospitality industry in the Western Cape, and considering the evidence that the Western Cape has passed its peak, and the demand on its health services is slowly stabilising,’ said provincial minister of Finance and Economic Opportunities David Maynier.
Maynier then went on to say that because the Western Cape has seemingly passed its peak, the Government should consider relaxing the Alert Level 3 restrictions that are negatively impacting the economy.
International travel
International arrivals were much lower than initially anticipated for the traditional peak season.
Official Airports Company of South Africa (ACSA) passenger data shows that passenger recovery at the international terminal of the Cape Town International Airport in December 2020 was a mere 19% of December 2019 volumes. Aircraft were operating at only 51% of their passenger load factors (compared to 72% in December 2019).
These figures partially explain why the hotel industry, which is highly dependent on international travellers, has still not recovered.
STR (2021), who provide market data on the hotel industry, reports hotel occupancy levels in the Western Cape were at 32.7% in December 2020, compared to 68.1% in December 2019. In Cape Town, 5-star hotel occupancy levels were at 29% in December 2020, 4-star hotel accommodation at 34% and 3-star hotel occupancy at 31% occupancy. Similar results were reported for the Garden Route and the Cape Winelands.
Domestic Travel
In terms of domestic travel, vehicle counts nationally indicate that there was a reduction in the number of overland domestic travellers during the season. Traffic volumes have decreased by up to 27% on South Africa’s major highways.
The same trend was seen in airports. The domestic terminal at Cape Town International Airport saw only 51% of the volume of travellers compared with December 2019. On a more positive note, aircraft had average passenger load factors of 72% which reiterates the importance of domestic travel in the current climate.
The impact on guesthouses and coastal towns
With the announcement of hotspots and beach closures in December, coastal towns saw immediate cancellations from domestic markets.
A survey by NightsBridge, conducted after the announcement of the Garden Route as a hotspot, found that one-third of guesthouses on the Garden Route indicated at least 50% of festive season cancellations. The same study reported that 12.7% of bookings in the Western Cape were cancelled.
These reports not only show the precarious situation of the tourism and hospitality industry, but also the impact of the restrictions on the economy in the Western Cape.
‘Any hope of a recovery over the festive season has been lost, however, the summer season is not yet over, and we still have an opportunity to ensure the survival of businesses and jobs in the Western Cape if we can urgently relax the restrictions, specifically for the curfew to start at 23:00, the beaches to open and an easing of the alcohol ban,’ said Maynier.
Maynier then went on to say that he will personally write to the National Minister of Tourism, Mmamoloko Kubayi-Ngubane, to call for the immediate easing of restriction in respect of the curfew, the closure of beaches, the onsite consumption of liquor in restaurants and similar establishments, as well as allowing the tasting and selling of liquor at wineries and wine farms.
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