Wednesday 6 May 2020

Tourism on hold due to COVID-19

Dear Readers,

There is no doubt that the Covid-19 outbreak means that tourism is in a holding pattern...for now. That holding pattern will likely mean precipitous unemployment or reduced employment for about 80-90,000 people by the end of June 2020.  There could be 400-500 hospitality, travel and tourism enterprises in various parts of the value chain - direct or indirect participants in the sector - that go bankrupt, merge or are mothballed.  By the end of August or September, that number may top 700.  By December, that number can level off at 1000 enterprises, formal and informal, direct and indirect, that provide services to tourists on some level, that will no longer exist in Namibia.  I am being conservative with my thumb-suck estimates.  I use no science, just observation and my informed opinion.

This is no one's fault.  This is the downside of a totally unforeseen global pandemic.  Just as no one is at fault for an earthquake, tsunami or volcano eruption, no one is to blame for COVID-19.

Regardless of what steps are taken in Namibia (the country was already drowning in a deep economic recession) global world travel from Europe and North America will not restart in 2020.  We will be lucky if bookings begin trickling in for peak season (approx June - October for overseas travellers) 2021.  People, right now, are in too much shock and financial worry to accept this reality. They are screaming for immediate relief that actually, won't much matter until the world opens up again.

"And, this too shall pass." is the mantra I hold on to.  We can only do what we can.  Then, we must have a good cry, wipe our eyes and begin Plan B, C, D all the way to Z.  It may mean we leave a business or job we spent our hearts and savings to build and start something else in another sector completely.

It is time for damage control and cold decision-making.  The Namibian government has allocated (but not yet disbursed) N$400 million to assist tourism enterprises that are facing closure due to the pandemic.  That low amount cannot save the sector as a whole.  How these pennies are allocated is the problem that is likely delaying implementation.

Those Namibian tourism, travel and hospitality sector enterprises that are paid up-to-date on their Tourism Board bed levies, Paye and Social Security fees,  Income Taxes,  Affirmative Action reports, and are fully owned by Namibian citizens, should be in the pool for receiving the limited bailout funds available.

A certain percentage of the money must be held aside for wholly Namibian black or majority Namibian women-owned small businesses.  Communal conservatives with viable businesses must be in the pool for consideration for the funds.

After borders are re-opened, I implore that anyone still with the disposable income to travel, consider a week-long trip to Namibia.  The country is absolutely BEAUTIFUL...the wildlife viewing is outstanding.  The people, while not always smiling and may be slow on the customer service side, are, for the most part, good people just trying to feed their families. After the borders re-open will be a GREAT time to get value-for-money airline tickets and discounted booking prices.  Plan ahead and come to this wonderful African country.  Help revive our industry!