Hard-hit industries considered in Covid-19 Ters fund extension

While final details of the extension are subject to discussions at the National Economic Development and Labour Council, the Unemployment Insurance Fund (UIF) says the intention is to provide support for sectors that have not been fully operational since the beginning of the lockdown.

The tourism industry is among those severely affected by the Covid-19 pandemic and the various measures to minimise the spread of the virus.

These have included travel restrictions and the closure of beaches in hot spot areas, including King Cetshwayo district, during the festive season.

The impact has been evident in the City of uMhlathuze where tourism establishments recorded an average drop of 60% in occupancy as a direct result of the pandemic.

Business owner and former chairperson of the uMhlathuze Community Tourism Organisation (uCTO), Vanessa le Roux said although they remain optimistic for a positive shift in the coming months, it has been an extremely tough year for local businesses.

“It has been really tough and we are not coping. Smaller establishments such as guesthouses and bed and breakfast businesses have been the most affected,” said Le Roux.

Meanwhile, the numerous bans on alcohol since the start of lockdown have also dealt a heavy blow for businesses in the city.

Mandlazini tavern owner Gideon Lembede said the closure of his business had put a strain on his income stream and called for government to provide financial support to keep his establishment afloat.

The UIF has paid close to R60-billion since March last year in an effort to cushion the impact of the pandemic on businesses.

UIF spokesperson, Makhosonke Buthelezi said the fund will announce the opening of the system for an extended period once work to configure its systems is complete, and guidelines will be shared to assist users with the application process.

“The fund will continue to process and pay valid, as well as complete outstanding Covid-19 Ters benefit claims that are already in the system,” he said.

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