Just as the ban in international travel is lifted, the North Coast’s most prestigious hotel, the Fairmont Zimbali Hotel, is filing for business rescue.

The decision had been forced on the hotel’s board by the extended national lockdown caused by Covid-19, a spokesperson said.

The ban on foreign travel is set to re-open on October 1.

The move to file for business rescue was one aimed at safeguarding the interests of all its stakeholders, according to general manager Wayne Krambeck.

“We have been in support of our president and the government’s reasons for implementing the initial lockdown period however, the extraordinary circumstances of a prolonged lockdown – the longest in the world to date with limited support from government – has eroded our revenue base.

“The losses which will be incurred in a gradual return to normality with ongoing uncertainty, and the possible threat of further restrictions, is just not commercially viable.”

He said the hotel had faced an unprecedented situation following exponential growth, with record turnover from November 2019 to March 2020.

The hotel opened in the run-up to the 2010 World Cup, a joint venture with Zimbali estate developers Tongaat-Hulett and funded by the Kuwait-based IFA Hotels and Resorts.

Recognised as one of the largest foreign investments on the North Coast, the Fairmont Zimbali Resort has been a popular local holiday option for South Africans as well as international holidaymakers and business people.

Pierre Berrange has been appointed the business rescue practitioner.