{"id":618955,"date":"2022-08-23T09:15:03","date_gmt":"2022-08-23T07:15:03","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=618955"},"modified":"2022-08-23T09:15:03","modified_gmt":"2022-08-23T07:15:03","slug":"the-businesses-hardest-hit-by-liquidations-in-south-africa-right-now-2","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/618955\/the-businesses-hardest-hit-by-liquidations-in-south-africa-right-now-2\/","title":{"rendered":"The businesses hardest hit by liquidations in South Africa right now"},"content":{"rendered":"

The total number of liquidations remained flat between July 2021 and July 2022, new data from Stats South Africa (Stats SA) shows.<\/p>\n

However, the number of liquidations increased by 2% in the three months ended July 2022 compared with the three months ended July 2021.<\/p>\n

A decrease of 5.5% was recorded in the first seven months of 2022 compared with the first seven months of 2021, the stats body said.<\/p>\n

\"\"<\/a><\/p>\n

South Africa recorded 165 liquidations in July 2022, largely focused on the financing, insurance, real estate and business services segment. The trade, catering and accommodation segment saw the second largest number of liquidations, followed by community, social and personal services.<\/p>\n

Between January and July 2022, there were 1,098 liquidations recorded following the same general pattern, except for the construction segment, which outnumbered the community et al segment.<\/p>\n

About 320 business liquidations were part of unclassified industries, making up 29% of the total.<\/p>\n

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Stats SA’s latest liquidation data shows that businesses in the accommodation sector are still under pressure, but the trend is looking more favourable as the number of liquidations in the industry is declining.<\/p>\n

The group published tourism and accommodation statistics for June 2022 earlier in the week (22 August) showing a major shift from the same time last year.<\/p>\n

Measured in nominal terms (current prices), total income for the tourist accommodation industry increased by 50.1% in June 2022 compared with June 2021. Income from accommodation increased by 67.1% year-on-year in June 2022, the result of a 43.1% increase in the number of stay unit nights sold and a 16.7% increase in the average income per stay unit night sold.<\/p>\n

The largest contribution to these gains came from hotels, which have seen income more than double year-on-year through to June.<\/p>\n

While prospects for the sector is on the up, occupancy levels are still not where they were pre-Covid-19, showing that more work lies ahead.<\/p>\n

\"\"<\/a><\/p>\n

FNB property strategist John Loos previously said that economic headwinds hitting the wider economy may prevent real hotel income levels from reaching 2019 levels during the course of this year.<\/p>\n

These headwinds include the sharp rise in fuel prices, making tourism-related transport far more expensive. While fuel prices are expected to come down in September, they are much higher than a year ago.<\/p>\n

“This, along with signs of a weakening global and domestic economy, which has implications for aspirant tourists\u2019 disposable incomes, could constrain the pace of further recovery in the hotel property sector,” Loos said.<\/p>\n

These recent economic headwinds are on top of a number of other factors that may continue to constrain the industry, slowing its full recovery. This includes things like businesses embracing remote working and steering further away from physical travel.<\/p>\n

“We have long argued for a while that business travel not only battles from similar financial constraints following the 2020 recession impact on businesses, but the Business Sector has also successfully \u2018zoomified\u2019 much of its interaction during forced lockdowns.<\/p>\n

“This modern communication likely pushes it partially away from less efficient physical travel. A portion of that costly physical business travel may therefore never return. Many hotels may have to be less dependent on domestic business travel on a more permanent basis,” he said.<\/p>\n

\n

Read: Cisco finds new home at Waterfall as it adapts to new hybrid working model<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

South African businesses are still feeling the effects of the Covid-19 pandemic and lockdown, as industries slowly get back to ‘normal’ and try to adapt to a new way of working.<\/p>\n","protected":false},"author":10,"featured_media":618981,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[26],"class_list":["post-618955","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/618955","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=618955"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/618955\/revisions"}],"predecessor-version":[{"id":619001,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/618955\/revisions\/619001"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/618981"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=618955"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=618955"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=618955"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}