Tourism sector wants UIF TERS
SOS: SOME UNIONS ALSO WANT IT REINTRODUCED
Additional payouts can be funded by UIF’s investment portfolio of R11bn, Western Cape MEC says.
Tourism Business Council of South Africa (TBCSA) boss Tshifhiwa Tshivhengwa on Tuesday reiterated the organisation’s calls for the UIF’s Covid-19 Temporary Employer-Employee Relief Scheme (Ters) to be reinstated, saying the industry is on its knees and many more thousands of jobs are on the line.
“The government needs to urgently reinstate UIF Ters benefits for hard-hit workers and businesses in the tourism, hospitality and liquor industries, or we need the extended lockdown alert Level 3 restrictions to be reversed,” he told Moneyweb.
Similar calls have been made by other tourism bodies such as the SA Tourism Services Association, the Federated Hospitality Association and the Restaurant Association of SA.
Some unions and the Western Cape provincial government are also pushing for Ters to be reintroduced, particularly for the tourism and hospitality sector.
This follows the extension of Level 3 restrictions until February 15 amid a second wave of Covid-19 infections in the country.
Bans on the sale of alcohol and the public visiting of beaches, rivers and dams, together with the 9pm curfew and restrictions on events, have dealt a new blow to the sector’s recovery.
Adding to the hospitality industry’s woes is the recent bout of Stage 2 load shedding.
“We maintain our position,” notes Tshivhengwa. “We have always said that as long as there is this type of lockdown, there should be some sort of assistance for affected workers.”
He says discussions about the possible reinstatement of Ters benefits have taken place between government, business and labour via Nedlac.
Highly impacted
However, there “appears to be no response yet” from government or the UIF.
“The tourism sector is being highly impacted by extended Level 3 restrictions, some of which don’t make sense right now, such as the ban on [visiting] beaches, rivers and dams.
“In the traditional December peak, when some beaches are packed, the ban may have been sensible,” he says.
Tshivhengwa says trade in the sector, especially for restaurants, is also being affected by the 9pm curfew as well as the alcohol ban.
In addition, the curfew has impacted airlines and the “night economy”.
“More restaurants are having to close their doors, because it simply is not profitable to keep them open right now. Hotels are also being affected, with establishments like the Hilton Durban temporarily closing, while others are yet to reopen. Something needs to be done, because people are losing their livelihoods,” says Tshivhengwa.”
David Maynier, Western Cape MEC of Finance and Economic Opportunities, also on Tuesday repeated calls for the Ters benefit scheme to be extended to affected tourism businesses “for the duration of time that the additional restrictions apply”.
“Additional payouts can be funded by the UIF’s total investment portfolio of R114 billion [as at 31 March 2020], which includes R60 billion in liquid assets and R54 billion in illiquid assets,” Maynier points out.
He says these funds could provide the lifeline that businesses and employees need to survive.