KZN tourism sector begging to get back to business

Durban – KwaZulu-Natal business leaders have pleaded with the government to allow tourism and hospitality businesses to restart, as most other sectors are raring to go back to work when the country moves to lockdown level 3 on Monday.

Durban Chamber of Commerce and Industry president Nigel Ward said yesterday that the chamber supported the government’s risk-adjusted approach to reopen the economy on level 3, but further devastation to the tourism sector could be avoided.

Ward said opening up the rest of the economy on level 3 would be good for business.

“We believe this level will start to stimulate economic activity, with the reopening of the liquor industry for off-site consumption and the full reopening of all manufacturing, mining, construction, financial services, professional and business services, information technology, communications, government services and media services - subject to strict health and safety protocols,” Ward said.

Ward said the lockdown had brought many businesses in the tourism and hospitality sector to a complete halt, translating into huge revenue losses during traditional busy periods, including Easter and Africa’s Travel Indaba.

“This has significantly threatened job security on a large scale and further risks business health, resulting in possible closures for businesses in the tourism and hospitality sector, and across its value and supply chain,” Ward said.

“We urge the government to consider prioritising the reopening of the tourism and hospitality sector - accommodation and restaurants - under level 2, to avoid further economic loss and severe socio-economic repercussions for that industry, such as additional job losses and business closures,” he said.

“The tourism and hospitality sector is capable of implementing health and safety protocols concerning Covid-19, and programmes can be set up to aid the industry - to upskill their respective businesses to compliant levels.”

Ward said the lockdown had also resulted in a significant economic cost to the construction sector, as many sites had to close and projects were put on hold.

“Some of these projects are key infrastructure and developmental projects that were initiated to stimulate and supplement our regional socio-economic growth and development. The delay will have long-term implications for our local, provincial and national economy,” Ward said.

“SMMEs, spaza shops and informal businesses have been worst affected, given that many are reliant on monthly income to sustain operations, with no access to additional capital to ride out the current outbreak. Given the inherent complexity of regional and global supply and value chains, an extended lockdown will impact our manufacturing, transport/logistics sectors and trade,” he said.

Pietermaritzburg Chamber of Business chief executive Melanie Veness called for tourism and hospitality businesses to be allowed to operate under level 3, saying they would be able to safely operate under Covid-19 health and safety protocols. Many personal care businesses and restaurants would not survive the extended lockdown.

“I think restaurants would be able to manage quite well if they were allowed to operate and tourism establishments would be able to manage. It's important, to all of us that we ensure each other’s survival,” she said.

Veness said it was “fantastic” that most businesses could go back to work and employers had been ready to open for some time, as they had kept pace with the Covid-19 health regulations since the start of the lockdown.

“They have just been waiting for the word that they can open up and start operating,” Veness said. She said due to the broken supply chain it would be a slow start up and recovery for many.

National Employers Association chief executive Gerhard Papenfus said he did not agree with the lockdown policy and the government “micro-managing the economy” through the recent Covid-19 regulations, but he welcomed the news that most businesses could reopen.

Papenfus said it would cost businesses a lot to reopen and they would have to deal with staff and unions who would expect full pay, even if initially there was insufficient work because of the broken supply chain.

He said this would put additional financial strain on businesses and the Covid-19 regulations would further complicate life for business owners, as unions would declare disputes over perceived non-compliances.

Economic Development, Tourism and Environmental Affairs MEC Nomusa Dube-Ncube said the department was grateful for the input it had received from the business sector, regarding moving to level 3.

“Over the past two weeks, we've been soliciting their views and they have made submissions. We are thankful for their contribution in helping to draft the KZN Economic Recovery Plan,” she said.

Dube-Ncube said she would outline the recovery plan during her KZN state of the economy budget speech on

Tuesday.

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