Estimated R674-million lost to Covid in Plett

PLETTENBERG BAY - The Plettenberg Bay hospitality industry - a major contributor to the area's economy - has bled more than R674-million and more than a thousand jobs in just three months as a result of Covid-19 restrictions, exacerbated by the closure of beaches over peak season.

Plett Tourism's Acting Chief Executive Patty Butterworth said statistics gathered by them indicate that this results from the cancellation of the popular student festival, Plett Rage, the closure of the area's beaches and the ban on alcohol sales in hotels and restaurants.

The losses started earlier in the year, however, with restrictions on travel which reduced airline incoming travel and accelerated accommodation cancellations. Before Covid-19 struck, the hospitality sector was the leading source of income for Plett, generating an average of R3,9billion annually.

"The South

African domestic market makes up approximately 90% of the sector's income during December, and the majority of businesses in Plett rely on that December trade to sustain them, as it contributes to an average of 50% of their annual profit," said Butterworth.

The beach ban was a "crippling blow". Bookings for the season had been higher than expected, but the negative impact was immediate with a 30% cancellation rate, and then an additional 40% when beach closures were extended.

Plett Tourism's quarterly survey, which included the peak summer season, showed that at least 1 096 jobs in the hospitality industry were affected over the course of three months.

Financially, the accommodation sector was hit hard with 97% of businesses surveyed reporting a loss.

According to Plett Tourism's survey results, the year-on-year loss in the accommodation industry in Plett was 50%, the restaurant sector more than

50% and the tour operator sector more than 70%.

The beach ban was a “crippling blow”.