WTTC warns South African economy could see losses of ZAR 181 million

According to research conducted by the World Travel & Tourism Council (WTTC), the South African economy could face massive losses of more than ZAR 181 million every week it’s on the UK’s ‘red list’ for travel.

The comprehensive study conducted by WTTC, reveals the staggering consequences the UK ‘red list’ represents to the South African Travel & Tourism sector, and the nation’s economy, which have both been devastated by the COVID-19 pandemic.

All UK travellers, regardless of their vaccine status, travelling to countries on the ‘red list’, which includes South Africa, are required to cover the expensive cost of a 10-day hotel quarantine upon returning to the UK, plus the fees for COVID-19 tests.

The approach taken by other European countries such as Germany, France and Switzerland, where quarantine is no longer required for fully vaccinated citizens travelling to South Africa, can still slow the spread of COVID-19 while enabling mobility and providing a boost to the economy.

Based on 2019 UK visitor numbers and spending, the global tourism body’s research shows these restrictions, which are deterring Brits from travelling to South Africa, could represent losses of over ZAR 790 million every month, equating to more than ZAR 26 million every single day.

Virginia Messina, Senior Vice President, said: “The impact the UK’s traffic light system imposes on ‘red list’ countries is not only damaging the Travel & Tourism sector, but also economies around the world. Our data shows that every day South Africa remains on the UK’s ‘red list’, the country faces losing millions of dollars, effectively delaying the global socio-economic recovery.

“Our data shows how vital the Travel & Tourism sector is to rebooting the country’s economy.

“As a result of the pandemic bringing Travel & Tourism almost to a halt, hundreds of thousands of jobs have been lost across South Africa, pushing more people into poverty, which shows how crucial it is to restart safe international travel and reduce mobility restrictions.

“WTTC is calling on governments around the world to accelerate the rollout of vaccines as a catalyst to restart international travel and rescue the struggling global Travel & Tourism sector.

“Furthermore, we are also encouraging governments of ‘red list’ countries to work closely with their UK counterparts to ensure the very latest data is shared, so the country can be moved from the economically damaging red list, to the amber list as soon as possible.”

In the UK, more than half of all adults have been fully vaccinated, which significantly reduces the risk of any citizens travelling abroad. Whilst the vaccine rollout has picked up pace, the figure is considerably lower in South Africa.

It is therefore critical for the South African government to continue ramping up the vaccination programme to restart international travel, and enable the economic recovery as a result.

According to WTTC’s annual Economic Impact Report (EIR), in 2019 South Africa was among the most popular destinations for UK travellers, accounting for 7% of international visitor spending, representing ZAR 9.4 billion.

WTTC’s report also shows the punishing impact the pandemic has had over the country’s employment, with over 470,000 jobs lost due the lack of international travel.

The EIR also reveals the terrible effect COVID-19 had on South Africa’s economy, with the Travel & Tourism sector’s contribution to the national economy falling from ZAR 363 billion (6.9%) in 2019, to just ZAR 182 billion (3.7%) in 2020.

International visitor spending also plummeted by 66%, from more than ZAR 134 billion in 2019, to a mere ZAR 46 billion in 2020.