New alcohol ban having a ‘devastating effect’ on SA’s wine & hospitality industry

The South African hospitality industry has been hit hard by the COVID-19 pandemic and the subsequent restrictions imposed by the government, with core sales being banned and resulting in less profits and job losses. The impact on the industry has been so severe that it has left businesses financially compromised, with many facing closure and job cuts. Rosemary Anderson, National Chair for the Federated Hospitality Association of South Africa, and Mike Ratcliffe, Chair of Stellenbosch Wine Routes and Visit Stellenbosch, shed light on the devastating effects these restrictions have had on the industry. Rosemary highlighted the challenges faced by the industry, including restrictions on alcohol sales, curfews, and limitations on trading hours and venues such as beaches. She emphasized that every hospitality business in South Africa has been financially compromised and struggling to survive. Mike painted a grim picture of the wine and tourism industry in Stellenbosch, with restaurants closing and job losses mounting. He pointed out the negative impact of the ban on wine exports and the upcoming grape harvest season, which will further exacerbate the situation with surplus inventory and limited storage space. Both speakers emphasized the urgent need for dialogue between the industry and the government to find practical solutions to support businesses and prevent further job losses. Despite efforts to engage with the government, the industry has faced challenges in getting their voices heard and their concerns addressed. The lack of financial support, including delays in business interruption insurance payouts, has added to the industry's woes. With job cuts increasing and businesses struggling to survive, the industry is facing a dire situation that requires immediate attention and support to prevent long-term damage. The industry is united in its call for the government to reconsider the restrictions and engage in meaningful dialogue to find sustainable solutions for the sector's survival.