“We have 24 million African families whose livelihood is linked to travel and tourism,” Abou-Zeid said, adding the downturn had come in a year when Africa was expected to see an increase in travel and air transport.
Kenya has recorded a loss of $752 million since the outbreak of COVID-19, as disclosed by the Minister of Tourism, Najib Balala.
Tourism is one of the leading sectors in Kenya’s economy that caters to revenue generation, last year the domain generated $1.54 billion, which had been expected to grow 1% in 2020.
Most of the revenue losses are traceable to bookings cancellation for the peak season months of July-October.
South Africa’s tourism sector has reportedly lost an estimated R68bn in revenue, due to the pandemic. The decline in revenue comes with job losses.
Abou-Zeid emphasized that the pandemic recession is extensively felt between economic losses and job losses, as African airlines have seen a 95% drop in revenue, or about $8 billion, along with other losses such as the deterioration of assets.
“Some airlines in the continent will not make it post COVID-19,” she said, adding the turbulence came at a time when some airlines were in the formative stages of development, while others, such as South African Airways, were already in a difficult place before the pandemic.
The official air carrier of the country, South African Airways is seeking $1.2 billion to cushion debt repayment and commence operations after lifting off COVID-19 restrictions.
Likewise, Ivory Coast’s national airline, Air Côte d’Ivoire, which resumed domestic flights last Friday, received $24 million from the government to keep it afloat.
It is projected that consumer spending on tourism, hospitality, and recreation in Africa, is set to reach about $261.77 billion in 2030, which is $137.87 billion more than in 2015.
SOURCE: Ventures Africa