It found that the total income for the tourist accommodation industry decreased by 98 percent in May 2020 compared with May 2019. Picture: SofieZborilova/Pixabay
It found that the total income for the tourist accommodation industry decreased by 98 percent in May 2020 compared with May 2019. Picture: SofieZborilova/Pixabay

Shocking lockdown impact on accommodation sector, Stats SA figures show

By Travel Reporter Time of article published Jul 22, 2020

Share this article:

A new Statistic South Africa release reveals the impact of Covid-19 on accommodation establishments in the country.

The release explained that the coronavirus pandemic and lockdown regulations since March 27, 2020, have had an extensive impact on economic activity.

It found that the total income for the tourist accommodation industry decreased by 98 percent in May 2020 compared with May 2019.

Income from accommodation decreased by 98.5 percent year-on-year in May 2020, the result of a 98 percent decrease in the number of stay unit nights sold and a 24.2 percent decrease in the average income per stay unit night sold.

Statistics SA also revealed that in May 2020, all accommodation types recorded large negative year-on-year growth in income from

accommodation. The main contributors to the 98.5 percent year-on-year decrease in income from accommodation were hotels (-98.2 percent); and “other"”accommodation (-98.8 percent).

Income from accommodation decreased by 77 percent from March to May 2020 compared with March to May 2019. The main contributors to this decrease were hotels (-77.1 percent); and “other"”accommodation (-76.4 percent).

The South African accommodation sector has taken a hit since lockdown, especially with leisure tourism not permitted.

The Tourism Business Council of South Africa (TBCSA) revealed last month that more than R68-billion in tourism spend has been lost since South Africa’s national lockdown.

According to Stats SA’s Tourism Satellite Account, in 2018, total tourism spend in South Africa was R273.2-billion, while domestic tourism accounted for 56 percent of total spend and 44 percent was international inbound travel. This translates roughly to R22.7-billion per month and R748-million per day in tourism expenditure that has been lost. Tourism in South Africa supports 1.5 million jobs and contributes 8.6 percent to the GDP.

Chief Director: Communications for the Department of Tourism Blessing Manale told IOL Travel last month that there have not been any new announcements on leisure accommodation.

"We can confirm that accommodation for leisure purposes is not permitted under level 3. The only accommodation remains permissible under level 3 for among others essential, self-isolation, business travel, personal circumstances ( funeral attendance), conferences and business meeting, which will operate under strict measures.

"The opening of leisure travel within a province has not automatically opened up all accommodation facilities for all purposes. Such an announcement would have been explicitly made in the level 3 regulations which currently refers to general " leisure travel" within the province, " he said.

See the full Statistics SA release here.

Share this article: