{"id":407233,"date":"2020-06-12T18:00:20","date_gmt":"2020-06-12T16:00:20","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=407233"},"modified":"2020-06-12T14:42:40","modified_gmt":"2020-06-12T12:42:40","slug":"pay-cuts-retrenchments-and-closures-how-hotels-lodges-and-bbs-have-been-hit-by-the-coronavirus-lockdown","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/407233\/pay-cuts-retrenchments-and-closures-how-hotels-lodges-and-bbs-have-been-hit-by-the-coronavirus-lockdown\/","title":{"rendered":"Pay cuts, retrenchments and closures &#8211; how hotels, lodges and B&#038;Bs have been hit by the coronavirus lockdown"},"content":{"rendered":"<p>A new survey of South Africa&#8217;s accommodation business sector shows how various hotels, lodges and B&amp;Bs are struggling under the continued coronavirus lockdown, which has kept the travel and tourism industry shut down for almost three months.<\/p>\n<p>The survey, conducted by accommodation booking portal LekkeSlaap.co.za, polled 7,262 businesses across all provinces in South Africa, on all aspects relating to their operations and the Covid-19 outbreak and government reponse.<\/p>\n<p>This includes how the outbreak and lockdown has impacted their businesses, payment of salaries, retention of staff, as well as their views on the prospects of the industry going forward.<\/p>\n<p>Overall, LekkeSlaap found that while the vast majority of businesses were negatively impacted by the outbreak and lockdown, they were largely able to keep staff on book &#8211; with reduced pay &#8211; and they remain hopeful that the industry will be able to be salvaged by the end of the year.<\/p>\n<p>Despite the optimism, the Covid-19 pandemic has profoundly impacted the South African travel accommodation industry, leaving uncertainty, financial difficulty and, in many cases, economic devastation in its wake, LekkeSlaap said.<\/p>\n<p>&#8220;Results show that a 56.5% majority of businesses have been largely impacted and that the next few months will be a struggle. 27.6% indicated a high likelihood that their business will not survive &#8211; of which 3.9% said that their business definitely would not survive the pandemic,&#8221; it said.<\/p>\n<p>Limpopo (37.5%), North West (37.8%), Mpumalanga (33.5%) and the Northern Cape (34.2%) reported a particularly high chance of business failure.<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/06\/Not-surviving.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-407251\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/06\/Not-surviving.png\" alt=\"\" width=\"799\" height=\"529\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/06\/Not-surviving.png 799w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/06\/Not-surviving-300x199.png 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/06\/Not-surviving-768x508.png 768w\" sizes=\"auto, (max-width: 799px) 100vw, 799px\" \/><\/a><\/p>\n<p>&#8220;With Limpopo and Mpumalanga widely regarded to be the provinces with the most locally and internationally sought-after game viewing opportunities, these potential business failures could have a dramatic long-term impact on South Africa\u2019s tourism economy, with noteworthy short-term economic difficulty already being be visible in these results,&#8221; the group said.<\/p>\n<p>Comparatively 82.6% of respondents reported that their businesses were stable before Covid-19, of which 49.8% indicated steady revenues compared to the previous year and 32.8% indicated that their businesses were thriving.<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/06\/Business-Situation.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-407253\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/06\/Business-Situation.png\" alt=\"\" width=\"771\" height=\"513\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/06\/Business-Situation.png 771w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/06\/Business-Situation-300x200.png 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/06\/Business-Situation-768x511.png 768w\" sizes=\"auto, (max-width: 771px) 100vw, 771px\" \/><\/a><\/p>\n<p><strong>Pay cuts<\/strong><\/p>\n<p>Given the dramatic effect Covid-19 has had on revenues, owners were also asked whether they\u2019ve had to implement any salary reductions or retrenchments as a direct result of the pandemic.<\/p>\n<p>78.1% of travel accommodation businesses report instituting some form of temporary salary reductions as a direct result of Covid-19, of which 24.7% reported significant temporary salary reductions and 31.8% reported their entire workforce on temporary zero pay.<\/p>\n<p>Only 21.9% of respondents reported that their workforce has been unaffected by the pandemic.<\/p>\n<p>The results further show that at 77.6%, hotel representatives reported the highest number of significant salary reductions and at 70.1%, lodge representatives\u2019 reports come in at a close second.<\/p>\n<p>With self-catering representatives reporting the lowest number of businesses implementing significant salary reductions (54.6%), this data shows that the majority of travel accommodation businesses nationwide has had to significantly reduce payroll costs.<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/06\/Pay-cuts.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-407249\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/06\/Pay-cuts.png\" alt=\"\" width=\"776\" height=\"500\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/06\/Pay-cuts.png 776w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/06\/Pay-cuts-300x193.png 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/06\/Pay-cuts-768x495.png 768w\" sizes=\"auto, (max-width: 776px) 100vw, 776px\" \/><\/a><\/p>\n<p><strong>Retrenchments<\/strong><\/p>\n<p>In contrast with 56.5% of respondents that have implemented significant temporary salary reductions, 62% of respondents said that they have not permanently retrenched any staff as a direct result of Covid-19.<\/p>\n<p>Despite permanent retrenchments being indicated in minority, 20.7% of businesses say they have had to permanently retrench some staff as a direct result of Covid-19, while 9.3% have had to make significant retrenchments and 8% have entirely retrenched their workforce.<\/p>\n<p>KwaZulu-Natal respondents reported the largest number of significant retrenchments at 24.3%, demonstrating a significantly high overall number on provincial level, with the far less densely populated Northern Cape reporting 17.9% significant retrenchments.<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/06\/Retrenchments.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-407247\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/06\/Retrenchments.png\" alt=\"\" width=\"821\" height=\"453\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/06\/Retrenchments.png 821w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/06\/Retrenchments-300x166.png 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/06\/Retrenchments-768x424.png 768w\" sizes=\"auto, (max-width: 821px) 100vw, 821px\" \/><\/a><\/p>\n<hr \/>\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/business\/403173\/layoffs-pay-cuts-and-shutdowns-as-major-south-african-hotels-count-r1-7-billion-in-losses\/\" rel=\"bookmark\">Layoffs, pay cuts and shutdowns as major South African hotels count R1.7 billion in losses<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A new survey of South Africa&#8217;s accommodation business sector shows how various hotels, lodges and B&#038;Bs are struggling under the continued coronavirus lockdown, which has kept the travel and tourism industry shut down for almost three months.<\/p>\n","protected":false},"author":10,"featured_media":249623,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[26,15015],"class_list":["post-407233","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-headline","tag-lekkeslaap"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/407233","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=407233"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/407233\/revisions"}],"predecessor-version":[{"id":407377,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/407233\/revisions\/407377"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/249623"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=407233"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=407233"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=407233"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}