In a bid to bolster fiscal responsibility and reduce government spending, the South African Treasury has amongst other cost-cutting, implemented restrictions on government travel, conferences, and catering, which is causing significant apprehension within the hospitality industry.
“The tourism and hospitality industry relies heavily on government-related travel, bookings, and events, playing a pivotal role in sustaining the local hospitality sector. This announcement could jeopardise tourism just as we were recovering from a series of unprecedented challenges, including the COVID-19 pandemic.”
He advocates for a more consultative approach with industry bodies to plan for and assess the long-term consequences of these restrictions and to offer a timeframe within which to adjust. “Collaboration, innovation, and flexibility will be crucial in sustaining the industry and safeguarding jobs and economic growth. ”
“A reduction in government-related travel could lead to a freeze on new appointments, reduced working hours, and the postponement of upskilling programs. This, in turn, would have a detrimental effect on the livelihoods of many and could exacerbate unemployment rates,” warns Campbell.
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