CAPE TOWN (The Southern African Times) – Raino Bolz quickly diversified when his tourism business in South Africa’s winelands crashed to a halt in March because of the coronavirus pandemic. He sold a minibus — useless without tourists to ferry around — and bought a herd of pregnant cows.
He will have to wait for the cows to have calves and for the calves to be old enough to sell before he can make money from them. That probably won’t be until early next year, but it is his insurance policy.
Bolz hopes to see a return of some tourists in November, the start of South Africa’s tourism season. If foreign visitors — 80 percent of his income — don’t arrive for end-of-year vacations, he’ll need the profit from his cattle to stay afloat.
Africa will lose from $53 billion to $120 billion in contributions to its gross domestic product in 2020 because of the crash in tourism, the World Travel and Tourism Council estimates. Kenya expects at least a 60 percent drop in tourism revenue this year. South Africa a 75 percent drop. In South Africa, 1.2 million tourism-related jobs are already affected, according to its Tourism Business Council.
“Devastation,” council CEO Tshifhiwa Tshivhengwa said.
South Africa’s borders, including virtually all international flights, have been closed for nearly six months and there are no signs of them reopening. COVID-19 restrictions have shuttered what was once the lucrative centerpiece of African tourism, the safari.
For nearly 40 years, Desert and Delta has sold luxury safaris in the wildlife-rich Okavango Delta in northern Botswana and their clients have always been a particular kind of tourist. From North America or Western Europe, wealthy, retired and almost always over 60 years old, said James Wilson, Desert and Delta’s marketing director. His fear is that those retirees will be the last to come back.
Jillian Blackbeard sees a silver lining. She is the CEO of a regional tourism association that represents safari operators in Botswana, Namibia, Zambia and Zimbabwe.
It will take southern Africa’s safari tourism three years to recover, Blackbeard said. But the virus could also kick-start a long overdue change. She said they have relied too much on that specific kind of client, white, elderly, North American or European. She is pressing for the whole region to use the moment to diversify. To attract their own African tourists, who have been ignored. To look to Asia and its multi-generational travelers.
“For a long, long time, the African-American diaspora has never traveled to southern Africa,” she said. “It wasn’t that they didn’t want to come. It was because when you see a brochure it was always these white elderly people. COVID has allowed us to reach into that and say, ‘OK, how do we make our industry more resilient by diversifying our market?’”
No one is untouched. Sun International, a major player with a portfolio of casinos, resorts and high-end hotels in South Africa and several other African countries, has so far kept its 8,500 employees, although on reduced salaries. It can’t last. Sun International is now “having to consider quite severe restructures,” said Graham Wood, chief operating officer for hospitality.
One of Sun International’s landmark properties, the five-star Table Bay Hotel on the Cape Town waterfront, has been closed for half the year.
Wood does expect a bounce in domestic tourism at the end of the year from South Africans who aren’t going overseas. And domestic tourism got a boost last month when South Africa eased restrictions to allow interstate leisure travel. But the international tourist season this year is “not going to materialize,” Wood said.