FEDHASA urges Government to reintroduce TERS for the devastated sector

Reviewing the statistics that have just been released by Statistics South Africa – where the total number of liquidations in the hospitality sector increased by 37,5% in the first five months of 2021 compared with the first five months of 2020 – FEDHASA, urges Government to reintroduce TERS for the devastated sector. 

For all intents and purposes Hospitality has been closed down since 28 June – for the industry to attempt to trade under these new restrictions is financially not viable.  It is morally wrong to close a sector without providing some form of compensation to help the sector survive.”

“The hospitality and tourism sectors are also feeling that they are paying the price for Government not adequately preparing and boosting the health care facilities for the pandemic – which they have had 15 months to do as well as the inadequate vaccine roll out which is slower than many of our African neighbours and way behind our international key tourism destinations,” Rosemary Anderson, FEDHASA National Chairperson.

“A UN report which has just been released has indicated that South Africa will feel the negative economic impact of major decline in international tourism – more so than most of all other countries mainly due to our vaccination programme being far behind our key tourism markets.  Tourists will want to go to destinations with high rates of vaccinated people.  At the rate of vaccination roll out – South Africa is not going to be able to reverse this position for a worrying length of time,” adds Anderson.

Key findings: Statistics of Liquidations and insolvencies May 2021 (http://www.statssa.gov.za/?page_id=1856&PPN=P0043&SCH=72828)

The total number of liquidations increased by 37,5% in the first five months of 2021 compared with the first five months of 2020.

The full report can be downloaded at http://www.statssa.gov.za/publications/P0043/P0043May2021.pdf

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