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Rwanda’s national carrier Rwandair resumed commercial flights over the weekend at the same time as the country reopened her airspaces but what is the monetary cost for reopening of the airlines? CNBC Africa’s Makeda Mahadeo caught up with the CEO, Yvonne Makolo for more.

Rwandair CEO Yvonne Makolo on lessons learned from the COVID-19 crisis

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National carrier RwandAir will be resuming commercial passenger flights on the first of August as the Kigali International Airport opens its doors to travellers once again.

RwandAir CEO on what the resumption of commercial flights means

#VodacomDurbanJuly: What the launch of the Durban Virtual July Experience means for tourism

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After months of lock-down, Rwanda Convention Bureau announced that the country will reopen meetings and conferences, as it tries to revive the tourism and hospitality sector. Janet Karemera, Deputy CEO of the Rwanda Convention Bureau joins CNBC Africa for more.

Rwanda reopens meetings & conferences to revive COVID-19 hit hospitality sector

Pandemic costs Africa travel, tourism almost $55 billion &#8211; Reuters



DAKAR (Reuters) &#8211; African countries have lost almost $55 billion in travel and tourism revenues in three months due to the coronavirus pandemic, the African Union (AU) commissioner for infrastructure and energy said on Thursday.



Amani Abou-Zeid told a news conference the economic impact of lockdowns and border closures to curb the spread of the virus would be severe, with the continent’s air industry hit particularly hard.



She said tourism and travel represented almost 10% of the gross domestic product of Africa.



“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.



“The blow is very hard, between the economic losses and the job losses,” Abou-Zeid said. African airlines have seen a 95% drop in revenues, or about $8 billion, along with other losses such as the deterioration of assets, she said.



“Some airlines in the continent will not make it post-COVID-19,” she said, adding the blow came at a time when some airlines were in the early stages of development, while others, such as South African Airways, were in difficulties even before the pandemic.



Abou-Zeid said more resistant carriers such as Ethiopian Airlines were using the opportunity to acquire smaller struggling companies, but the outbreak had put a halt to the AU’s plan for a single African air transport market.



Prosper Zo’o Minto’o, regional director for the International Civil Aviation Organization, told the news conference that African airlines would need an estimated $20 billion to resume operations.



Ivory Coast’s national airline Air Cote d’Ivoire, which restarted domestic flights on Friday, said it had received 14 billion CFA francs ($24 million) from the government to keep it afloat.

tourism-1845203_1280

Pandemic costs Africa travel, tourism almost $55 billion

TUNIS (Reuters) &#8211; Tunisia reopened its land, sea and air borders for the first time in more than three months on Saturday after it announced it had brought the coronavirus outbreak under control.



Some operations restarted at Tunis-Carthage airport, with flights to Rome, Geneva and Paris scheduled to depart.



The government ended all restrictions on movement and businesses after Prime Minister Elyes Fakhfakh said on June 14 that Tunisia had won the battle against the spread of the virus.



However, the pandemic has severely impacted the tourism sector, which contributes nearly 10% of gross domestic product and is a key source of foreign currency.



Tourism revenue in the first five months of 2020 have declined by about 50% compared with the same period in 2019 as hotels and resorts have been left empty as a result of lockdowns and border closures.



Latest figures show that Tunisia has had 1,064 confirmed cases of coronavirus, with 50 deaths.



The North African country’s economy is expected to shrink as much as 7% this year due to the impact of the pandemic, the worst recession in nearly 60 years, investment minister Slim Azzabi has said.



Unemployment will increase by 275,000, according a government study in partnership with the United Nations, he added.

tunisiajpeg

Tunisia’s borders opened to soothe Covid-19 impact on toursim

By Jee-A Van Der Linde – Economist



Finance ministers of East Africa are expected to table their respective budgets in coming days for the new financial year that begins on July 1. The reading of East African budgets is normally a joint exercise.



The new budgets come at a pivotal time, as the unexpected Covid-19 pandemic has placed pressure on government finances in 2020.



Authorities have little choice but to provide fiscal support where they can. However, there will be challenges and the governments will need to closely monitor developments to avoid the budget deficits from spiralling out of control.



Government finances will take a hit across the region. We believe that this will for the most part be driven by the collapse in fiscal revenue due to the marked deterioration in the economic outlook.



The region’s largest economy, Kenya, has provided fiscal support through tax relief, which will further weigh on the revenue side.



In general, on the expenditure side we expect to see a lot of reprioritisation away from sectors that have seen activity halted due to the Covid-19 pandemic. This could include a reduction in direct spending in the tourism sector and construction.



These resources will likely be redirected towards containment efforts – particularly health care – and social support.



Regardless, East African fiscal finances will look a lot worse during the next fiscal year than what was expected a few months ago. Fiscal deficits will be wider than previously anticipated and public debt will increase at a faster rate.



We have seen multilaterals stepping up support, which could reduce the longer-term fiscal impact of the Covid-19 crisis, but commitments to date will undoubtedly have to be supplemented to ensure that the Covid-19 pandemic does not have a long-term fiscal legacy.



Furthermore, most East African nations have been able to assess the impact of the virus and incorporate this new reality into their budgets.



This is a lot more efficient than having to adjust a budget midway through a fiscal year.



Rwanda, the region’s fastest-growing economy in 2019, is to delay publishing its budget for the new financial year. The break from tradition comes down to the Rwandan Cabinet not yet having approved the finance minister’s budget proposal.



The government expects to spend RWfr3.245trn during the fiscal year 2020/21 – RWfr228.7bn more than the revised budget estimates.



Although we do not expect government to curb non-essential expenditure during this time, stimulus measures to fight against the fallout of the virus are unavoidable.



Rwanda’s fiscal deficit is expected to widen this year, in step with its regional peers. Moreover, public debt levels have risen over the years and 2020 will be no exception.



Given the extraordinary circumstances, forecast adjustments are likely.



Room to deploy fiscal policy to combat Covid-19 is limited.



It seems investors globally have made peace with the fact that many countries will have to increase borrowing to combat the pandemic, and if containment efforts show positive results, these countries should not struggle to find capital to fund the recovery.



The East African region is fighting an economic battle on two fronts.



Covid-19 is disrupting supply chains, curtailing economic activity at large and devastating regional tourism.



Meanwhile, the unprecedented locust infestation is wreaking havoc in the region’s agricultural sector – an industry generally spared from the Covid-19-induced economic slump.



The World Bank announced the commencement of an emergency programme to help countries in Africa fight the ongoing locust infestation.



The Bank noted that the first East African countries to be financed under the initial phase of the programme are Djibouti, Ethiopia, Kenya, and Uganda, with a total financing package of $160m.



Despite this support, the unprecedent nature of both the Covid-19 pandemic and the locust infestation will derail the region’s economic growth trajectory.



We expect Africa’s fastest-growing region to record a 1.8% GDP contraction this year.



For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>

Op Ed: East African finance ministers to present budgets for new fiscal year

By Shani Smit &#8211; Economist



Travel bans and containment measures around the world are having a devastating effect on the tourism sector in Mauritius, which was already experiencing sluggish growth in 2019. According to Statistics Mauritius, the total number of tourists visiting the island’s shores declined by 1.1% in 2019, while gross tourism earnings fell by 1.5% to Rs63.1bn.



The tourism industry as a whole is an essential component of the Mauritian economy and is estimated to have accounted for 18.8% of GDP and 19.1% of total employment in 2019.



In the first four months of 2020, tourism arrivals dropped by 33.9% y-o-y. Meanwhile, tourism earnings, which are not updated as regularly as tourist arrivals, are estimated to have fallen by 3.8% y-o-y in the first two months of 2020.



The United Nation’s World Tourism Organisation (UNWTO) estimates that global travel could fall by 60% &#8211; 80% in 2020, which would suggest a drop of between 850 million and 1.1 billion in international tourists, the loss of $910bn &#8211; $1.2trn in export receipts from tourism, and as many as 120 million direct jobs in the tourism sector being at risk.



Prior to the pandemic, the government’s vision was to attain 1.6 million tourists by the end of 2020, to increase tourism earnings to the tune of Rs71bn and create 12,208 (compared to 41,792 jobs in 2017) additional direct jobs in the tourism sector.



Tourists visiting Mauritius are primarily European, accounting for about 60% of all tourists. European tourists are mainly French, British, and German, but the government has undertaken numerous initiatives to diversify its tourism market, with a particular focus on Asia, Oceania, and America.



While many countries have started to ease their lockdown measures, potential tourists will be anchored down by travel restrictions, tighter budgets, and health-related fears.



While the tourism sector has been the hardest hit, other economic sectors such as the textile, transportation, and manufacturing sectors are also facing the brunt of the economic slowdown.



As a result, unemployment figures have started to soar. According to the minister of finance, Mauritius could see unemployment increase by 150% to a total of 100,000 active non-employed workers; that is, 17.5% of the active population.



This would represent an increase of around 60,000 of unemployed persons across Mauritius, he said.



As part of the government’s fiscal support measures amid Covid-19, a wage support scheme and self-employed assistance scheme have been implemented.



The purpose of the two schemes is to cushion the socio-economic impact of Covid-19 by providing financial support to employees who have become unemployed on a temporary basis, as well as those who are employed in informal sectors or self-employed.



On April 17, the government extended the schemes until the end of April, allocating an additional Rs4.5bn in spending. Meanwhile, temporary amendments have been made to the Workers’ Rights Act and the Employment Relations Act under the Covid-19 Bill to protect the rights of workers and support businesses.



For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>

Op-Ed: Tourism sector in Mauritius devastated by COVID-19

Tourism during COVID-19: An industry shift

Kickstarting SA&#8217;s tourism businesses 



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One in 22 working South Africans is employed in the tourism sector. It directly contributes 2.9% to the country’s gross domestic product. In 2017 tourists&nbsp;spent just over half a million rand&nbsp;every minute&nbsp;or R277&nbsp;billion for the entire year in South Africa, according to Stats SA. All this has changed with COVID-19 and lockdown. The industry has been brought to a virtual standstill. But as the country has entered phase 4 of lockdown what measures and funding are in place to help kick-start the tourism industry? Is it enough? Find out on this riveting #BusinessTomorrow Zoom virtual panel discussion.



Date: 12th May 2020



Time: 2pm CAT 



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Speakers Sisa Ntshona, CEO of South African Tourism Don Scott, Owner of Tanda Tula



Tshifhiwa Tshivhengwa, CEO of Tourism Business Council of South Africa



David Frost, CEO, SATSA TOPICS COVERED



<ul><li>Funding options for B&amp;Bs, small, medium and large businesses operating in the tourism sector during times of lockdown and COVID-19</li><li>How to access the funding</li><li>Is it enough?</li><li>What measures are in place to help tourism businesses survive?</li><li>Rebuilding your tourism business for tomorrow</li></ul>

The 4 most under-reported stories on the COVID-19 pandemic

COVID-19: How to kick-start SA’s small, medium & large tourism businesses

By Chris Bishop.



Like most hard pressed entrepreneurs in Africa, Don Scott had to cut costs and batten down the hatches in the face of the COVID-19 lockdown – like very few, he also had to worry about wild animal invasions and encroaching bush.



Scott, an engineer by trade, runs the Tanda Tula lodge, in Timbavati near the Kruger Park, in northern South Africa. Right now it is operating on a skeleton staff as most of his 62 workers are taking leave; they were paid for April, but took a 15 per cent cut. For those left, their full time job is trimming back the fast growing bush and stopping the wild animals, that live in it, from taking over the resort.



“If you let a game lodge go you will never find it again!” laughs Scott. As speak on the telephone a pride of lions has just walked across his manicured lawn- six males and four lionesses, he says, before continuing with his story.



“What the few of us left have got to do is cut back the trees and make sure there is enough human activity around the camp. If there is then usually the animals stay on the periphery.”



Scott watched the lights go out at his game lodge in a few crazy days in March. The travel ban was declared on March 15 and the resort emptied. On that Sunday, 22 of the camp’s 24 tents were occupied by tourists from the United States, France and the United Kingdom. By the following Friday, nearly all the tourists had fled to the airport. On that evening, two British holiday makers remained rattling around in the huge dining room at the lodge.



“We got all the staff together and sat down and had dinner with them so they didn’t feel lonely,” says Scott.



“But to be honest, I think we were all trying to keep each other’s spirits up.”



For now Scott spends his days hacking at the bush, watching out for lions and waiting for the travel restrictions and lockdown to subside. Until it does there won’t be a tourist in sight in Timbavati and lions will be the fleeting kings of the lawn, as well as the forest.



Don Scott will be taking part in the CNBC Africa virtual panel discussion Business Tomorrow at 14 00 CAT on Channel 410 on Tuesday May 12. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

don scott

How COVID-19 led to wild animal invasions in Africa.

By Tim Cocks, Shafiek Tassiem



JOHANNESBURG, May 6 (Reuters) &#8211; Most visitors wanting to see big game in Africa jet in from faraway places, so when the new <a href="https://www.cnbcafrica.com/videos/2020/05/05/covid-19-bites-into-sas-tax-revenue/">coronavirus</a> <a href="https://www.cnbcafrica.com/news/2020/05/05/covid-19-sa-based-airline-comair-enters-business-rescue/">grounded flights</a> and put the world into lockdown, the legendary African safari died.



But for South African company WildEarth — which brings virtual safaris to your living room via a camera that their guides drive around in an open top vehicle — it is boom time.



“We’ve seen a dramatic rise in our viewership of our live safaris,” founder Graham Wallington told Reuters. “A fivefold increase in the first two weeks in March.”



Wallington said they are currently attracting up to 3 million viewers a month, with an individual virtual safari hooking in as many as 200,000 at their most watched.



Twice a day, viewers can watch whatever animals the guides spot as they zoom around game reserves — they’ve filmed 200 spots across east and southern Africa since founding it in 2006. A 24-hour camera perched over a watering hole in South Africa’s Djuma Game Reserve also shows live images of whatever comes there to drink.



Highlights include a pack of jackals and African wild dogs fighting over a kudu carcass, a leopard cub jumping out of a tree, a mother cheetah playing with her kids and close encounters with elephants, hippos, lions, baboons and giraffes.



In all, the guides narrate the trials of the animals as they follow them around.



The footage is free to access. WildEarth makes revenue from selling premium video to broadcasters, from merchandise and a small amount of advertising, Wallington said, declining to give figures on turnover.



The main benefit for conservation efforts is that the videos are “making people fall in love with nature,” he said.



“They start seeing those animals as individual beings. That is the moment that the viewer empathises,” he said.



Whether it is commutes to work, long-haul business travel or sightseeing, the COVID-19 shutdown has a lot of people thinking about whether they need to always rush from place to place, or whether a virtual interaction would sometimes do just fine.



Wallington said the crisis had created “a real opportunity for people to generate money by creating virtual experiences.”



From an environmental point of view, it also cuts back on carbon emitted by flights, and could help popular spots, like East Africa’s Serengeti, recover from over-tourism.



“If our mission was just to bring more and more tourists, we would destroy the thing we want to save,” he said.



In the coming weeks, they plan to start paid-for private tours with currently out-of-work guides via a Zoom video call.



(Editing by Alexandra Hudson)



This article was first published on Reuters Africa <a href="https://af.reuters.com/article/southAfricaNews/idAFL8N2CM3LB">https://af.reuters.com/article/southAfricaNews/idAFL8N2CM3LB</a> and is republished with its permission.



For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>

COVID-19: Liven up your lockdown routine with SA’s ‘virtual safaris’

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Nigeria has rolled out a new visa policy, which President Muhammadu Buhari says will improve the business environment, attract foreign investment and boost tourism without compromising national security. James Sunday, the Deputy Comptroller of Immigration and Public Relations Officer of the Nigeria Immigration Service joins CNBC Africa to breakdown the features of the new policy.

Nigeria seeks to attract foreign investment

Nigeria seeks to attract foreign investment, boost tourism with new Visa policy

NAIROBI (Reuters) &#8211; Kenya’s earnings from tourism rose 3.9% last year to 163.56 billion shillings ($1.61 billion), thanks to a slight increase in the number of visitors, its tourism minister said on Friday.



The East African nation, which relies on tourism as a major source of foreign exchange and jobs, had 2.05 million tourists last year, an increase of 1%, said Najib Balala.



An attack on a hotel and office complex in Nairobi last January, and a general slowdown in the global tourism business, were to blame for the low growth in arrival numbers, he said.



Along with agricultural exports and money sent home by Kenyans living abroad, tourism is one of the top foreign exchange earners.



Kenya has a variety of products, from beach holidays at the coast to Safaris in the Maasai Mara wildlife reserve, but it attracts fewer visitors than African competitors like South Africa due to frequent political upheavals and insurgent attacks.



Between 2012 and 2015, visitor numbers and tourism earnings fell after a spate of attacks claimed by Somalia’s al Qaeda-linked al Shabaab, which wants Nairobi to pull its troops out of Somalia.



A reduction in attacks in the years that followed allowed the sector to rebound.



($1 = 101.5000 Kenyan shillings)



Reporting by George Obulutsa; Editing by Duncan Miriri and Kim Coghill

Kenya’s tourism earnings up 3.9%

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Tourism is a crucial sector to Rwanda’s economy and the country has set out to double revenue from the sector to $800 million in the next four years. Frank Gisha Mugisha, Director of Rwanda Tourism Chamber joins CNBC Africa to explain the role of the private sector.

Rwanda targets $800mn in tourism revenue over next 4 years

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Tourism in Africa is grew 5.6 in 2018 compared to the global average of 3.9 and the broader African economy at the rate of 3.2 per cent, placing Africa as the second-fastest growing tourism region behind only Asia-Pacific. Simon Gros, Chief Development Officer at Travelport joins CNBC Africa on how technology can be leveraged to boost tourism on the continent.

Simon Gros: How technology can be leveraged to boost tourism on the continent

<figure class="wp-block-image is-resized"><img loading="lazy" decoding="async" src="https://www.cnbcafrica.com/wp-content/uploads/2019/09/PxHere_xenophobia1.jpg" alt="" class="wp-image-344954" width="692" height="518"/><figcaption>Image by PxHere</figcaption></figure>



By Unathi Sonwabile Henema 



The looting of shops and the shutdown of several central business districts in several South African cities has unleashed violence and the destruction of property. The normal functioning of several cities has been disturbed by these acts, as public transportation was disturbed and this had a negative impact on employee attendance, destroying value for the public and private sector. 



The attacks on foreign nationals and their property are associated with xenophobia and opportunistic acts of crime. These acts of crime and violence are nothing short of being home-grown terrorism, and a form of economic crime. These acts have gained international attention and this had a detrimental impact on the brand image of destination South Africa. The brand image of a country is important in attracting investment and promoting tourism consumption. 



<h2 class="wp-block-heading">Perception trumps reality</h2>



In a world where perception trumps reality, negative perception of a destination is detrimental for the visitor economy. The tourism industry is one industry that depends on a country’s brand image to achieve its growth and sustainability. South Africa is one of the most beautiful countries in the world and is a bucket list destination. Potential tourists to South Africa always details the immense beauty of our country, and further ask about safety within the same sentence. 



Personal safety and security for tourists in South Africa is a challenge, that impacts on the competitiveness of South Africa negatively. The World Economic Forum’s Travel and Tourism Competitiveness Report under Safety and Security places South Africa at number 120 out of 136 countries, which means that safety for tourists is not guaranteed. Safety and security is supposed to be a dividend that is enjoyed by citizens and also tourists, and this is the responsibility of the state. Unfortunately, crime is rampant in South Africa, and it seems as if the only those perpetrators of crime who enjoy the fruits of our democracy. 



<h2 class="wp-block-heading">Tourism has been a cinderella industry</h2>



Tourism is disproportionally important for the economy of South Africa, which is in a growth trap. Tourism since 1994, has been a cinderella industry, whose growth rate has always been higher than the GDP growth of the economy. Tourism has therefore rightfully been declared the new gold as it drives the economy of South Africa as gold did. The growth of tourism is associated with the growth in jobs, due to the labour-intensive nature of the tourism industry. Jobs growth is what South Africa needs, and the tourism industry creates the number of entry-level positions at the lowest cost. 



The industry is able to assimilate labour that is both skilled and unskilled and is well-placed to mitigate the structural challenges facing South Africa, which includes the skills mismatch. The vast majority of tourists that visit South Africa are from the African continent, representing more than 60 percent of international tourists. In the latest ‘Tourism &amp; Migration’ it&#8217;s revealed that in June 2019, there were 154 361 international tourists, compared to 578 783 tourists from the African continent. 



<h2 class="wp-block-heading">Africa at the epicentre of SA&#8217;s tourism industry</h2>



The top 10 leading African inbound markets are represented by Zimbabwe at number 1 and Tanzania at number 10. The report further identified &#8220;other’&#8221; top leading inbound markets, which includes Nigeria (1), Kenya (2), Ghana (3) and Uganda (4). The report, therefore, paints a picture that the African continent is therefore the epicentre of our tourism industry. The acts of violence and xenophobia, therefore, threaten the tourism industry. African tourists travel to South Africa more frequently for shopping, healthcare, education, and visiting friends and relatives. Furthermore, research indicates that they are already outspending international tourists. 



Acts of violence and crime against tourists were declared an economic crime by the joint sitting of the Portfolio Committee on Tourism and Police. This means that acts of violence and xenophobia are a form of economic crime because it threatens the ability of South Africa to attract tourists.



Unathi Sonwabile Henama is an academic sangoma teaching tourism at Tshwane University of Technology

tourism

Rwandair CEO Yvonne Makolo on lessons learned from the COVID-19 crisis

RwandAir CEO on what the resumption of commercial flights means

#VodacomDurbanJuly: What the launch of the Durban Virtual July Experience means for tourism

Rwanda reopens meetings & conferences to revive COVID-19 hit hospitality sector

Pandemic costs Africa travel, tourism almost $55 billion

Tunisia’s borders opened to soothe Covid-19 impact on toursim

Op Ed: East African finance ministers to present budgets for new fiscal year

Op-Ed: Tourism sector in Mauritius devastated by COVID-19

Tourism during COVID-19: An industry shift

COVID-19: How to kick-start SA’s small, medium & large tourism businesses

How COVID-19 led to wild animal invasions in Africa.

COVID-19: Liven up your lockdown routine with SA’s ‘virtual safaris’

Nigeria seeks to attract foreign investment, boost tourism with new Visa policy

Kenya’s tourism earnings up 3.9%

Rwanda targets $800mn in tourism revenue over next 4 years

Simon Gros: How technology can be leveraged to boost tourism on the continent

Op-Ed: A tourism outlook on the looting of shops and xenophobia

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tourism

Rwandair CEO Yvonne Makolo on lessons learned from the COVID-19 crisis

RwandAir CEO on what the resumption of commercial flights means

#VodacomDurbanJuly: What the launch of the Durban Virtual July Experience means for tourism

Rwanda reopens meetings & conferences to revive COVID-19 hit hospitality sector

Pandemic costs Africa travel, tourism almost $55 billion

Tunisia’s borders opened to soothe Covid-19 impact on toursim

Op Ed: East African finance ministers to present budgets for new fiscal year

Op-Ed: Tourism sector in Mauritius devastated by COVID-19

Tourism during COVID-19: An industry shift

COVID-19: How to kick-start SA’s small, medium & large tourism businesses

How COVID-19 led to wild animal invasions in Africa.

COVID-19: Liven up your lockdown routine with SA’s ‘virtual safaris’

Nigeria seeks to attract foreign investment, boost tourism with new Visa policy

Kenya’s tourism earnings up 3.9%

Rwanda targets $800mn in tourism revenue over next 4 years

Simon Gros: How technology can be leveraged to boost tourism on the continent

Op-Ed: A tourism outlook on the looting of shops and xenophobia

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