The tourism industry continues to take the strain as lockdown regulations remain in effect. The accommodation sector is especially under pressure with limited travelling allowed.
Although operations are allowed, Statistics SA shows that the total income for the accommodation industry decreased by 98% year-on-year in May 2020.
A Statistics South Africa survey shows that the impact of COVID-19 and lockdown regulations since March have had a great impact on economic activity in the tourism industry.
Hotels among hardest hit
The number of tourists visiting South Africa started dwindling in March due to travel ban restrictions.
Hotels, guest houses and B&Bs have been hit the hardest. Income from accommodation decreased by 77% in the three months ending May 2020, compared to the same period in 2019.
The total loss of revenue in the three months from March to May exceed R4.6 billion compared to the same period a year ago.
The hotel industry is estimated to contribute about 9% to the job market with about 1.5 million people employed in the industry.
How many of these jobs can be sustained under the current climate? The industry will likely remain under pressure as interprovincial travel remains prohibited under lockdown.