Johannesburg – South Africa’s hospitality industry plunged by R15.4-billion in 2020, data from Statistics South Africa show.
The agency’s tourist accommodation survey laid bare the destruction caused by Covid-19 on the sector.
The data show that income from accommodation dropped to R9.8-billion last year compared to R25.2-billion in 2019.
The trend continued in the new year, with income registered at just R631-million in January compared to R2.1-billion last year January.
“Income from accommodation decreased by 71.2% year on year in January 2021, the result of a 58.1% decrease in the number of stay unit nights sold and a 31.2% decrease in the average income per stay unit night sold,” said statistician-general Risenga Maluleke.
“In January 2021, all accommodation types recorded large negative year-on-year growth in income from accommodation. The largest year-on-year decreases in income from accommodation were reported by hotels (-77.3% and contributing -50.5 percentage points); and ‘other’ accommodation (-61.5% and contributing -18.3 percentage points).”
The normally profitable festive period of November to January also recorded a steep decline in tourists spending. Between November 2019 and January 2020, the sector registered R6.9-billion in accommodation income, but could only cash in R2.6-billion in the period from last November to January this year.
With more than 16-million international visitors annually in the recent years prior to the pandemic, the tourism sector is larger than the agriculture, forestry and fishing industry.
The sector is one of the biggest casualties of the Covid-19 pandemic and the lockdowns, resulting in hundreds of company closures.
Just this week, Vineyard Hotel’s sister hotel, the Townhouse Hotel announced that it will close its doors.
“After 50 years, we have made the difficult decision to close our Townhouse hotel on 31 March 2021. We thank our loyal and committed Townhouse team who have played such an integral part in the moments and memories we have of the Petousis family story in the city centre,” a statement from the hotel read.
To the many valued guests we have been privileged to host, we look forward to welcoming you again to our other hotels, The Vineyard in Newlands and Oude Werf in Stellenbosch. We will continue to strive every day to make your time with us memorable.
PWC’s Public and Private Growth Initiative Report 2019 shows that tourism has the greatest potential to stimulate inclusive economic growth and employment.
Minister of Tourism Mmamoloko Kubayi-Ngubane this month expressed concerns on the impact a possible third wave of Covid-19 infections may have on the embattled industry.
In the print edition of this article, it was said that the Vineyard Hotel would be closing down. This was a mistake and it is actually the Townhouse Hotel that will be closing down.
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