Mass retrenchment looms, says tourism council
The industry loses R748 million every day and an estimated 600 000 jobs are on the line if the sector remains closed, said TBCSA.
MASS retrenchment is looming as the tourism and travel industry has lost more than R68 billion since lockdown started over 100 days ago.
This according to the Tourism Business Council of South Africa (TBCSA), which is urging government reopen domestic interprovincial leisure travel.
The knock-on effect has impacted roughly 49 000 SMMEs, said TBCSA.
“If government does not open interprovincial leisure travel this week, mass retrenchments will start within the sector. This will be further propelled by the UIF TERS benefit coming to an end and insurance companies refusing to pay legitimate claims. Interprovincial travel will bring hope to the industry and mitigate mass retrenchments,” said Tshifhiwa Tshivhengwa, CEO of TBCSA.
The industry loses R748 million every day and an estimated 600 000 jobs are on the line if the sector remains closed, said TBCSA.
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“We developed protocols to mitigate the spread of Covid-19 across the entire tourism value chain and these have been accepted. The next steps that are taken by the tourism industry should reflect this and our readiness to reopen the industry. Interprovincial leisure travellers, similar to business travellers, have a significant contribution to make to the country’s tourism, and we should therefore be allowed to receive them,” said Tshivhengwa.
According to TBCSA, tourism protocols are comprehensive and sufficient to mitigate the spread of the virus and should serve as a guide to ensure that safety and hygiene practices are put in place and practiced in all tourism related businesses and functions.
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TBCSA also highlighted that the end of June marked the last month that the Unemployment Insurance Fund (UIF) will pay workers their Covid-19 TERS relief benefits.
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