Cape Town - The South African tourism and hospitality sector is facing collapse because insurance companies refuse to pay them for losses related to the Covid-19 lockdown, even though they’re insured against “business interruption”.
The tourism and hospitality sector sustains over 740000 direct and 1.5million indirect jobs, and contributes 8.6% to GDP. It is also the lifeblood for many micro and small enterprises, creating mass employment opportunities across the country. The sector has been out of business since March, when the national lockdown started.
Cief executive of the Federated Hospitality Association of Southern Africa Lee Zama said the rejection by insurers of Covid-19-related business interruption insurance claims of the hospitality industry will directly contribute to further job losses in the sector, worst hit by the pandemic.