STA Travel closes down due to coronavirus
STA Travel has closed down, citing the coronavirus pandemic and international travel restrictions caused by the subsequent lockdown.
The group grew out of a student travel business and specialised in trips for young people, including gap years and volunteer projects.
In a message posted on the group’s website, STA Travel said that would make arrangements with customers who have already paid for bookings.
“To our valued customers, due to the recent announcement that STA Travel South Africa has ceased trading, unfortunately our travel experts are unable to assist you at this time,” the group said.
“Please be assured that if you had a previous booking with us, or hold a live booking, you will receive further communication in the coming days. We are sorry for the inconvenience and the limited information available to you at this time.”
The closure will have an impact on both the group’s South African operations as well as its international business, with STA Travel operating more than 50 shops in the UK, the BBC reports.
Close to 500 jobs are thought to be at risk as a result of the firm’s shuttering in the UK alone.
Months away from reopening
The international tourism industry has been one of the hardest hit by the coronavirus pandemic, with travel agents and airlines facing prolonged pressure.
The Bureau of Economic Research (BER) at the University of Stellenbosch says international travel will be vital for the revitalisation of South Africa’s economy.
Given that the recent resurgence of Covid-19 cases in Europe is largely blamed on international travel and social gatherings for leisure purposes, the group said this may still be some months away.
“Crucially, South Africa’s current regulations on the wearing of masks and continued social distancing are much stricter than in most European regions. This could prove an important factor in preventing such a scenario in South Africa,” it said.
The BER said that the opening of borders was vital for the local economy, highlighting tourism data published by Statistics South Africa last week which showed that industry came to a near standstill amid the Covid-19 induced lockdown measures.
“The move to Level 2 which allows for more normal trading conditions, including leisure-related interprovincial travel, should support the recovery in the industry. Unfortunately, given the enormous hit to income most businesses were faced with in the past five months, many have permanently closed their doors.
“The extent of the permanent damage will only become clear in months to come,” it said.
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