Tsogo Sun Hotels FY profits plunge, COVID-19 lock-downs weigh

Hospitality Group Tsogo Sun Hotels reported a 31 percent plunge in full-year headline earnings per share, with COVID-19 resulting in a significant drop in demand from international tourists in the fourth quarter due to global lockdowns. Marcel von Aulock, CEO of Tsogo Sun Hotels, highlighted the challenges faced by the industry during a recent interview on CNBC Africa. Von Aulock noted that even before the announcement of lockdown measures, the hospitality sector saw a sharp decline in pre-bookings from international tourists. As Europe began to shut down due to the pandemic, the demand for travel dropped significantly, impacting conferences, events, and airline utilization. This led to a wave of cancellations for bookings in the upcoming months, signaling a collapse in demand for the industry. Von Aulock explained that the tourism and hospitality industry has been one of the hardest hit by COVID-19, with restrictions on flying, conferences, and events further exacerbating the situation. The group has called on President Ramaphosa to expedite the reopening of the economy, emphasizing the critical need for revenues to sustain the industry's survival. Looking ahead, Von Aulock outlined a slow and phased recovery plan for Tsogo Sun Hotels. The company plans to reopen hotels gradually based on demand, starting with business travel as restrictions ease. Von Aulock anticipates a gradual return of domestic leisure travel once more relaxed regulations are in place, aiming to capitalize on the upcoming holiday season towards the end of the year. However, he noted that foreign visitors may be slow to return, particularly from European markets struggling to reopen their borders. The recovery of the convention business is expected to take longer as events are postponed, uncertain of when they can resume operations. Von Aulock emphasized the importance of managing cash flow to ensure profitable openings and mitigate financial risks as the industry navigates the road to recovery. When questioned about safety protocols for guests amidst the pandemic, Von Aulock reassured that Tsogo Sun Hotels has implemented comprehensive hygiene and safety measures in compliance with industry guidelines. Enhanced cleaning protocols, food handling procedures, and staff training have been put in place to prioritize guest and staff safety. Von Aulock highlighted the shift towards more visible cleanliness practices, emphasizing the importance of guests feeling safe and comfortable during their stay at Tsogo Sun Hotels. The group remains committed to maintaining high standards of hygiene to limit the spread of COVID-19 and ensure a safe environment for all patrons. As the industry awaits the reopening of the economy, Tsogo Sun Hotels continues to adapt to the evolving landscape, positioning itself for a gradual recovery in the post-pandemic era.