KNYSNA BUSINESS NEWS - With businesses globally facing difficult times as a result of the Covid-19 pandemic, this is even more the case in Knysna, where businesses are more exposed and vulnerable than most towns as they are still recovering from the 2017 Fires that adversely affected the town’s economy.
According to Greater Knysna Business Chamber (GKBC) board member Evelyn Pepler, the effect of Covid-19 and the lockdown on Knysna businesses have been the final straw. “Ultimately, the support structures we thought we had secured for all eventualities did not endure.
"The reality is that Knysna businesses were even more exposed and vulnerable than most other towns. The June 2017 Fires severely affected our town's economy. It took roughly two years to rebuild and reopen businesses.
"Bigger establishments and operators such as Featherbed Co, Knysna Hollow and Blackwaters River Lodge were severely damaged. The fires had a significant knock-on effect on the entire Knysna tourism business community. It was like starting a business from scratch; it takes at least five years for a business to become established,” she said.
Pepler said the Covid-19 lockdown sideswiped business owners while the town was in recovery mode and building up for a desperately needed year-end. “Our businesses are struggling to hold on. We are only now at Level 3 and tourism businesses may only start operating at Level 2. Who knows when that will be? The coordination of opening businesses does not align with the opening of our borders and the eventual influx of our tourists on which we so heavily rely,” she said.
A survey conducted on about 500 business owners in Knysna, compiled by the GKBC, revealed a dire situation according to Pepler.
The survey showed that:
• Few businesses managed to receive the government's UIF/TERS three-month wage support for their staff.
• Few succeeded in securing funding for their businesses, while 41% indicated they had applied for funding assistance.
• Landlords were not accommodating with their rentals and payments.
• Despite president Cyril Ramaphosa's statement to the contrary, SARS is withholding refunds and has charged penalties.
• There was major confusion and disappointment regarding what is called "business interruption insurance", which so many people discovered would not be covering the loss of income due to business closure.
• Finance and banking institutions reacted too slowly to applications for "payment holidays" for bonds, vehicle finance and general debit orders.
• Despite evictions being illegal, many have been forced to vacate homes and businesses.
• Cellphone companies and Telkom did not offer any payment relief or accommodation whatsoever.
• About 6% of the businesses said they would have to close down and retrench all staff.
• Businesses appealed for a reduction in property rates and more support from the municipality.
• There were appeals for food aid, due to not qualifying or being a foreign national.
“The bulk of our responses came from tourism businesses, which are going to be the last to be allowed to open in Level 2, along with the beauty industry, hairdressers and spas. The global travel restrictions, closed borders and international travel bans will effectively mean that this industry will have to wait much longer for our tourists to get here. If these businesses cannot be saved, then neither will jobs – the reality is that local unemployment is going to climb to dangerous levels,” Pepler said.
She said many business owners are in dire straits, and that the business chamber rallied to create a fund that would offer food parcels to business owners who do not qualify for assistance from the other initiatives.
“Money from private donors and fundraising initiatives raised R85 000, allowing us to deliver 180 food parcels to over 100 businesses. This initiative will continue, however, since most businesses are back in operation, we plan to focus on the hospitality and tourism businesses, as well as the hairdressers and beauty industry that is still under lockdown,” she said.
According to Pepler, Tourism Business Council SA (TBCSA) and Southern African Tourism Services Association (Satsa) are lobbying to unlock inbound aviation and travel to South Africa.
“The message they are sending out is that South Africa is tourism-ready. GKBC has joined the George Business Chamber and various other organisations in support of their lobbying to get George airport reopened; general tourism ideas like establishing 'corona-resilient zones'; and advising tourism establishments to remove the risk to the consumer when it comes to restrictive conditions (ease up on terms and conditions and cancellations policies etc.) to make pre-booking/reservations more attractive as an effort to stimulate the flow of business into this industry – at least for the last quarter of 2020,” she said.
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