Property360 National Digital Magazine - 10 December 2021

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LOCALS CAN HELP RESCUE HOLIDAY ACCOMMODATION PAGE 3

PICTURE: MICHAEL BLOCK/PEXELS

PROPERTY

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Domestic tourists will hopefully save the country’s tourism industry these summer holidays. PICTURE: PAM ABREY/PIXABAY

Local travel industry is devastated

Now domestic tourists are riding to the rescue – as long as inter-provincial travel bans are not introduced

BY BONNY FOURIE bronwyn.fourie@inl.co.za

I

MMEDIATE, dramatically destructive and devastating.

This is how Federated Hospitality Association of South Africa (Fedhasa) national chairperson Rosemary Anderson described the impact of the latest international travel restrictions on South Africa.

And she said this was so “not least because of their potential long-term impact on our tourism industry”.

South Africa’s tourism accommodation sector faces not only a bleak summer holiday season but an unknown 2022.

“For travel to happen, certainty is required and if this is the reaction that travellers can expect when variants are discovered, whether here or elsewhere, it will dissuade them from any long-term travel plans.”

Long-term strategy Those establishments that have managed to survive the past 20 months are resilient and agile, but Anderson expects next year to be another tough year.

“We have, however, emerged as a stronger industry and are far more collaborative than we have been in the past.”

On a positive note, she adds the industry is working more closely with the tourism ministry to eliminate barriers that hamper growth and to tap into opportunities like remote work visas for this lucrative market.

“Together with the minister,

Lindiwe Sisulu, we plan to market South Africa as it has never been marketed before. We have learnt much over the past 20 months which will hopefully help us navigate the stormy waters ahead and, at the same time, set our aims and ambitions higher than they have been before.”

Is it naive to expect travel restrictions to be lifted soon?

When South Africa was removed from Britain’s initial red list, the pent-up demand resulted in immediate bookings. Now Fedhasa says it is hopeful that “if science prevails and the bans are lifted”, the appetite will “remain in time for us to save what is left of our peak season”.

Although some countries are already removing outright travel bans and instituting other, more effective, restrictions to limit the spread of Covid and the Omicron variant, Anderson says each country ultimately uses different criteria to make this decision.

“We saw when the Beta variant was first discovered, South Africa was added to the red list at the beginning of 2021 and only removed in October.”

As the country’s scientists say they will only be able to establish the extent to which vaccines are effective against the Omicron variant and its real impact on hospitalisations and deaths towards the middle of this month, it is hoped that governments that have instituted

travel bans, such as the UK – South Africa’s key source market – “will be led by science and not politics when changing their restrictions to match”.

Will it be too late?

This is hard to say, says Anderson.

“On the one hand, there was incredible pent-up demand and the removal of South Africa from the red list had the effect of a tap being opened in full for inbound travel, not just from UK, but other key source markets.

“On the other hand, once bitten, twice shy. The immediate and indiscriminate way in which the restrictions were imposed overnight has created a great deal of uncertainty and done incredible harm to destination South Africa’s reputation.”

Property investor Grant Smee worries that even if the restrictions are dropped soon, it may be too little, too late.

“It’s impossible to know for sure, but with massive numbers like R1 billion in losses being reported, it is unlikely that travel being re-opened in the next few weeks will be enough to rescue providers but it may help to stem the bleeding.”

Anderson says South Africa’s tourism operators and property owners are, however, grateful that its domestic tourism is robust.

“We would further ask the government to use all other measures at its disposal to prevent a lockdown of inter-provincial

travel as this would be even more devastating for the sector.”

Short-term survival plan In addition – and for the sake of the upcoming holiday season – tourism property owners and South Africans should lobby the government to embark on a massive vaccination drive and encourage consistent implementation of nonpharmaceutical interventions as well as health and hygiene Covid-19 protocols.

“Added to this is to let the government know that our tourism and hospitality sector simply will not survive more lockdowns or more restrictive laws than those we currently have,” Anderson says.

Tourism and hospitality staff must be encouraged to get their #jab4tourism “so that we can keep our doors open and save the livelihoods that still remain in our beleaguered sector”.

South Africans to the rescue?

The focus for tourism property owners must definitely be on the local market, Smee says.

“Offer discounts or incentives to those living within the same province to attract a new market of nearby customers who may not have considered a ‘staycation’.

“While it is an incredibly difficult ask to expect accommodation providers to slash their rates after a brutal two years of lost revenue, discounted

stays might be the best chance of attracting domestic travellers who are also cash-strapped as a result of the pandemic.”

Some accommodation providers are already seeing local tourists coming to their aid, with Larika Botha, principal of RealNet Pristine in Jeffrey’s Bay, saying that holiday flats and houses in the town are “fully booked from December 15 well into January”.

“South African holidaymakers are more than making up for the lack of international visitors.”

She says those who could not enjoy beach holidays last year, thanks to Covid, are determined do so this year.

“And while some are reluctant to pay more than 50% of the usual deposit in case the president announces local travel restrictions or beach closures, most landlords are understanding and still taking these reservations.”

The main concern now among South Africans, says Susan Coetzee of RealNet Rainmaker in Mossel Bay, is uncertainty over the government’s plans to try to contain the spread of the Omicron variant.

“Our biggest worry is that the government will decide to stop inter-provincial travel or to close beaches again.”

The petrol price is also a “bit of a deterrent” for those who plan to drive from Gauteng and other inland provinces, she adds.

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vivian.warby@inl.co.za

FIND US HERE: @property360.co.za

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Travel bans knock R1bn off tourism revenue

Letter from the editor I HATE the fact that we are ending the year on a bleak note with this story on the devastation to the holiday property industry caused by international travel bans.

This year hasn’t been gentle on us, and the property industry has taken a few knocks. Since March last year, life has changed for many of us. The way we stepped into that month is not where we find ourselves today.

Many of us have been traumatised, shaken and disturbed by the pandemic and subsequent events.

Some have lost loved ones, jobs, salaries, homes – even their health.

Yet, no matter how dark times have become, I’ve always enjoyed my chats with those in the property industry – those men and women who fly the silver-lining flag, always finding something good to rave about.

Yet the world has changed.

It has demanded of us to be braver than we thought we would ever need to be and it has cracked open our hearts in extending kindnesses to strangers and also accepting help when we might have been too proud to in the past.

No matter what is lined up for us in the times to come, let’s remember how far we have come, what we have survived, and let that engender hope in us, knowing that no matter what comes our way, we will handle it.

Thank you for your wonderful and dedicated support this year, without which we would not be here.

Cheers until 2022!

D E C E M B E R

Accommodation establishments in and around the country’s game reserves will be among the hardest hit by the international travel restrictions this summer season.

PICTURE: PIXABAY

Mass cancellations leave accommodation establishments empty over the holiday season

BY BONNY FOURIE bronwyn.fourie@inl.co.za

I

T TOOK just two days for South Africa’s tourism and hospitality sector to lose more than R1 billion in travel bookings following the discovery of the Omicron Covid-19 variant and the subsequent implementation of international travel restrictions.

Owners of hotels, bed-and-breakfast establishments, Airbnb properties and even campsites now face a bleak summer, with most of their revenue wiped out, and support for more than 200 000 annual jobs gone.

These establishments had already been through a dreadful two years while the pandemic kept guests away, and just at the beginning of the holiday season they hoped would start some sort of revival, the country was hit with more international travel bans.

“We had high hopes of recovering some of the business that had been lost over the past 20 months,” says Rosemary Anderson, national chairperson of the Federated Hospitality Association of SA (Fedhasa).

“Accommodation establishments across the country were reporting high occupancies, with a good balance between domestic and international travellers over the festive season, and were starting to employ more staff to service the increase in demand for accommodation.”

But within just 48 hours of the UK red-listing South Africa, and other travel restrictions following the detection of the Omicron variant, the country’s tourism and hospitality sector lost over R1bn in bookings for December to March.

“A snap survey conducted among just over 600 members of Fedhasa and the Southern Africa Tourism Services Association, representing hospitality and the international inbound tourism private sector, respectively, revealed that if the travel bans remained in place, based on the cancellations to date, respondents would lose 78% of their previously expected business levels for the period December to March.

“This would support in order of 205 000 jobs annually.”

While tourism establishments across the country will all have been affected for the upcoming holidays, she says those with traditionally large international-source market bases, such as the Western Cape and safari areas such as Kruger National Park and Limpopo, would be particularly hard hit.

Grant Smee, property entrepreneur, investor, and managing director of Only Realty Group, says tourism accommodation providers had been counting on the return of overseas tourists to generate “desperately needed” income over the season.

“Areas like Cape Town had already started to see an influx of travellers from midNovember, particularly from Europe, and the outlook had been strong.

“Domestic bookings had also been strong, with many families keen to make up for the lost holiday of the previous year.”

While the impact of the rise in Covid cases on domestic travel is still unclear, the fourth wave predicted for this month is sure to see some locals choosing to play it safe and cancel their travel plans.

“I think accommodation providers in Cape Town, Durban, the Garden Route and game reserves in Mpumalanga and Limpopo will be most affected by the travel restrictions, as these are the areas most popular with international tourists.

“In terms of sectors, luxury accommodation providers will be hard hit as often these prices are geared towards foreigners with strong currencies and most locals cannot afford them.

“Big hotel chains will also take a significant knock, as they have an oversupply of rooms available, many of which have stood empty throughout the pandemic.”

Echoing this, FNB property economist John Loos says that, prior to the latest travel restrictions, hotels were in dire straits, and he believes next year will be “more of the same”.

“Unfortunately, they will have to live without a significant portion of foreign tourists and a large portion of business travel

won’t come back either.”

Analysing hotel occupancy data from StatsSA, he says September saw only 26.7% of hotel space booked. And while this was better than figures from the height of the pandemic and lockdowns in September last year, which saw rates at only 15.2%, it was far off the 2019 September occupancies of 54.1%.

Loos says May is seasonally the weakest month of the year for tourism, and that figures pick up after that, so September is a “reasonably good month” for tourism establishments. This means the September data was a good indication of the struggles hotels are facing this year.

“These low figures are due to a combination of factors like losing business travel, the restriction on foreigners and the fact that locals are financially pressured. Not everyone is taking holidays like normal.”

Guest houses and lodgings have performed even worse than hotels over the past three years, with their occupancy figures being: l September 2019: 32%, l September 2020: 7.2%, l September 2021: 19.1%.

However, their occupancy rates, he says, have been “declining noticeably since 2013”.

“As the economy stagnated, their occupancy rates declined. This accommodation type was under more pressure pre-lockdown than hotels.”

What is interesting though, Loos notes, is that campsites have been the strongest performers, and this could be because they are more affordable and, from a virus point of view, perhaps deemed safer.

Occupancy rates for camp sites have been: l September 2019: 37.6%, l September 2020: 21.1%, l September 2021: 33.3%.

Loos says overall tourism accommodation income for B&Bs, guest houses, caravans and hotels was 56.9% higher than last year – obviously as heavier restrictions were in place last year – but that this income was 58.3% lower than in September 2019.

DISCLAIMER: The publisher and editor of this magazine give no warranties, guarantees or assurances and make no representations regarding any goods or services advertised within this edition. Copyright ANA Publishing. All rights reserved. No portion of this publication may be reproduced in any form without prior written consent from ANA Publishing. The publishers are not responsible for any unsolicited material.

Publisher Vasantha Angamuthu vasantha@africannewsagency.com Executive Editor Property and Environment Vivian Warby vivian.warby@inl.co.za Features Writer Bonny Fourie bronwyn.fourie@inl.co.za Design Kim Stone kim.stone@inl.co.za

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O T H E R

P R O P E R T Y

N E W S

Get security up to scratch before you go on holiday

Homeowners should try resolving disputes with their neighbours directly before involving the police or courts. PICTURE: PIXABAY

BE NICE TO YOUR NEIGHBOURS YOU MIGHT be able to choose your home, but you cannot select your neighbours.

“Dealing with neighbour disputes can therefore be an unfortunate by-product of homeownership,” says Adrian Goslett, regional director and chief executive of Re/Max of Southern Africa.

“These tend to increase over the festive season when many take their annual leave and spend more

hours at home.

“The reassuring thing is there are laws to protect the interests of homeowners who are living within their rights.”

He says local police can follow up on complaints around boundary wall offences or noise complaints. If these interventions do not help, homeowners can bring the issue to their nearest court.

However, before involving the police or resorting to

extreme measures, Goslett recommends homeowners first try to resolve the issue directly with their neighbours.

“Taking these issues up with the authorities can be an uncomfortable process when you live next to the person you’re calling the cops on.

“It is always advisable to attempt to resolve these issues between the responsible parties before getting others involved.”

Make sure your outside lights are working before you go away. PICTURE: SIXTIES PHOTOGRAPHY/UNSPLASH

H

OME security systems perform a vital function in keeping your family and possessions safe, especially during the holidays, says Charnel Hattingh, head of marketing and communications at Fidelity ADT. Assess your security system and get problems dealt with by a professional technician at least three weeks before you go away.

“Your security system is only as effective as its weakest component. If you have invested in a home security system, you must make sure it is always functioning properly.”

Hattingh shares six tips for pre-holiday security system testing:

• Put your alarm panel on test with your security company.

• Check your perimeter for vulnerabilities, such as broken electric fencing, foliage, worn locks on gates or sensors not working on doors and windows.

• Check all outside lights.

• If someone is going to be staying in the house while you are away, ensure your remote and fixed panic buttons are working.

• Ensure cameras are in the right positions and are recording as they should.

• Inform your security provider if you are unsure about anything or feel your security could be compromised.

Boost infrastructure projects to aid sector, government urged

The roll-out of infrastructure projects will help improve business conditions for civil contractors. PICTURE: DIMPHO SAMETSI/PIXABAY

C

ONFIDENCE among civil contractors has dropped at the close of this year, with 85% dissatisfied with prevailing business conditions.

This is despite improvement in key indicators such as activity and profitability in Q4, according to the latest FNB/BER Civil Confidence Index.

And senior FNB economist Siphamandla Mkhwanazi says it is difficult to pinpoint the reasons behind this “persistently weak level of confidence”.

“One possible qualification is, although the growth in activity is somewhat better this quarter, compared to a few years ago, the total value of construction activity is still much lower.”

But, looking ahead, he says there are signs that activity could improve, albeit only slightly.

“Respondents noted that there is indeed an improvement in tender activity. However, tender awards are lagging significantly, and the validity of tenders is increasingly being extended. This means that, while there is interest, not all projects will be realised, or at best, be commissioned in good time.”

Mkhwanazi says accelerating the roll-out of infrastructure projects by the state and further progress on structural and regulatory reform to boost private sector infrastructure spend would “go a long way to alleviate the woes in this sector”.

JOHANNESBURG NAMED AFRICA’S MOST RESILIENT CITY Johannesburg was the more adaptable city during the pandemic. PICTURE: MISIO/PIXABAY

JOHANNESBURG has been Africa’s most resilient and adaptable city throughout the pandemic, a report has revealed.

The Kearney Annual Global Cities report offers key insights on how Covid-19 and the resulting pandemic containment measures have impacted the level of global engagement of 156 cities around the world.

Prashaen Reddy, a partner at global management consulting

firm Kearney, says of the 13 African cities included in the study, Joburg remained the highest, in 55th place. Cairo climbed five points placing it at 59th and retaining its second place ranking within Africa.

The news wasn’t so good for Cape Town – it ranked 77th last year but has now dropped four places and ranks at 81st.

The report highlights five strategic steps that are imperative

for cities leaders to consider.

These include: • Win in the competition for global talent.

• Embrace the rapidly growing digital economy.

• Ensure economic resilience by balancing global and local resources.

• Adapt in the face of climate change.

• Invest in individual and community well-being.

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PICTURE: DIDS/PEXELS

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LAST FEW FROM THE DEVELOPER

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S e cu re y o u r Pi e c e o f Parad ise RETIRE ON THE KZN SOUTH COAST

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Phase 4B is open for sale. These units have exceptional 160 degree sea views over the village of Widenham. Retire to the tranquil South Coast of KwaZulu Natal.

Let Hibiscus Retirement Villages be your destination of choice for your retirement.

More than 50 years of experience in caring for retired people.

Call Caylin or Jenette on 066 306 0669 or 066 306 0612 to view www.hibiscusrv.co.za • widenhamsales@gmail.com • www.widenhamretirementvillage.co.za

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60 Years of experience offering value for money Retirement Lifestyle Villages Widenham Retirement Village, the newest addition to the Hibiscus Retirement Village group, is set on 100 hectares of plush coastal forest in the quaint community of Widenham.

The village will consist of 600 cottages.

The amenities currently planned are two beautiful bowling greens, a community centre, a swimming pool, tennis court, a chapel, hall, a comprehensive frail care centre, coffee shop and gym.

Phase 1,2,3 and 46 units in phase 4 of the development are complete and occupied.

We have 300 units sold and 271 units occupied.

We have 468 residents creating a new life within the village, learning new activities and making new friends.

There is no waiting list for Widenham Retirement Village. Phase 4B is open for selling and the first 46 units are occupied and 75 units have been sold. Don’t delay phone Caylin or Jenette and book your piece of paradise for the rest of your life.

Hibiscus Retirement Villages has been in existence for 60 Years, we have a tried and tested track record and a strong balance sheet. The Society has 4 retirement villages, 1147 living units and over 1600 residents.

MAKE WIDENHAM YOUR RETIREMENT VILLAGE OF CHOICE

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PRIME PROPERTY WITH OCEAN VIEW FRONTAGE IN RAMSGATE! STYLISH MODERN DWELLING WITH FLATLET, LAGOON ACCESS & HIGH QUALITY LOOSE ASSETS

Deceased Estate: AJ Bosch as share holder of owner

AUCTION: 29 DECEMBER 2021, 11:00 AUCTION AT: 2021 IMPI ROAD, RAMSGATE, KWAZULU NATAL

WEB21/0287

Extent: ± 2470 m² Improvements: (Double storey, 450m²) Ÿ Entrance hall Ÿ Open plan kitchen with lounge/ dining room, bar, & scullery Ÿ 4 bedrooms, all en suite bathrooms Ÿ Double garage Ÿ Swimming pool Ÿ Veranda with built-in braai Ÿ Entertainment area Ÿ Established garden with lagoon access.

Flatlet: (100m²) Ÿ Entrance hall, lounge, kitchen, bedroom, en suite & parking area LOOSE ASSETS OFFERED SEPARATELY & JOINTLY AS 1 LOT Beds, dishwasher, various fridge/freezers, lamps, bedside tables, fan, tumble-dryers, washing machines, chest freezers, ornaments, wall unit, dining table & chairs, bar chairs, couch, crockery, kitchenware, ladders, TV, gym equipment, Concept 2 rowing machine, tools and more.

AUCTIONEER’S NOTE: A beautiful mansion with an excellent location, beautiful finishes and stunning ocean view frontage!

Loose assets, full purchase price, commission plus Vat. Property 10% deposit & commission plus Vat. Bidders to register & supply proof of identity and residence. Regulations to Consumer Protection Act: www.vansauctions.co.za Rules of Auction to be viewed at 36 Gemsbok Street, Koedoespoort Industrial, Pretoria.

Tel 086 111 8267 / 082 220 1312 | Auctioneer: Paul Holdt

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WIDENHAM RETIREMENT VILLAGE South Coast, KZN Office 066 306 0669 / 066 306 0612 Email: widenhamsales@gmail.com www.hibiscusrv.co.za

KINGSFORD ESTATE Westville, KZN Office: 087 012 5670 Email: info@kingsford.co.za www.kingsford.co.za

DOGON GROUP PROPERTIES Atlantic Seaboard Office 021 433 2580 Email: thekings@dogongroup.com www.dogongroup.com

NOBLE RESORTS Cape Town 010 612 6060 sales@nobleresorts.co.za

KLOOF RETIREMENT VILLAGES Upper Highway - KZN Contact: 073 2100 577 Email: lhan@telkomsa.net www.kloofretirementvillages.co.za

DOGON GROUP RENTALS Sea Point Office 021 433 2580 Email: enquiries@dogongroup.com www.dogongroup.com

RHONDA RAAD PROPERTIES Cape Town Office 082 448 7795 Email: rrpsales@mweb.co.za www.rhondaraadproperties.co.za

THE WOODLAND Umhlanga Office 081 281 3960 Email: info@woodland.co.za www.woodland.co.za

DOGON GROUP PROPERTIES Southern Suburbs, Claremont Office 021 671 0258

BALWIN PROPERTIES Ballito Office 084 788 1020 Email: michelle@balwin.co.za www.balwin.co.za

SHELLEY RESIDENTIAL KZN Office 082 412 4463 Email: hello@shelley.co.za www.shelley.co.za

RAWSON PROPERTY GROUP Cape Town Office 021 658 7100

debbie.reabow@rawsonproperties.com

www.rawson.co.za

southernsuburbs@dogongroup.com

www.dogongroup.com

TOP ADDRESS IN HYDE PARK, JOHANNESBURG!!

STYLISH AND SPACIOUS RESIDENCE WITH SWIMMING POOL ,TENNIS COURT & MORE ONLINE LIQUIDATION AUCTION

DOGON GROUP PROPERTIES Western Seaboard Office: 021 556 5600 or 021 433 2580 Email: enquiries@dogongroup.com www.dogongroup.com

In liquidation: Sandton Property Developments 2001 (Pty) Ltd. Master’s ref: G1160/2020 PETER MASKELL AUCTIONEERS VAN’S AUCTIONEERS

KZN Gauteng ONLINE BIDDING: 12:00, 10-11 086 AUGUST Office: 033 397 1190 Office 111 82672021 BID AND REGISTER: www.vansauctions.co.za Email: info@maskell.co.za www.bidlive.maskell.co.za www.vansauctions.co.za

AUCTION OF: 81, THIRD ROAD, HYDE PARK, JOHANNESBURG

www.property360.co.za Extent: ± 3000 m² Improvements: Ÿ Entrance hall, lounge, dining room with sun room & family room Ÿ 4 bedrooms Ÿ 3 bathrooms (2 en suite) Ÿ Separate toilet Ÿ 2 TV rooms, kitchen & scullery

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