Tourism was hard hit before social distancing and lockdown was announced. Recovery will be tough.
The tourism and peripheral sectors such as aviation had already experienced a major loss of income ahead of the measures introduced by governments because of the decline in global and local travel. These sectors are drivers of revenue to other businesses such as the transport sector.
“A lockdown of this magnitude in terms of the period, inevitably signals retrenchments forthcoming. One needs to also consider the possible costs that may hit the sector as a result of disinfectants that may now be a new normal post the lockdown. The sector will need to rework how it does business and formulate a solid recovery plan,” says Pat Semenya, head of ACCA South Africa.
Other sectors, including mining, eventing, non-food retail and construction (and just about any non-essential business) have only begun to experience widespread losses since the start of distancing measures, but it remains clear that their losses will be widespread and significant.