The COVID-19 pandemic and guesthouses in South Africa : economic impacts and recovery measures

Abstract

ABSTRACT The coronavirus (COVID-19) pandemic has rapidly spread throughout the globe, and recovering from the pandemic will be a massive test on economic systems. The pandemic has severely affected the accommodation sector as global travel has come to an almost complete standstill as of April 2020. This paper provides a preliminary assessment of the economic impacts of the pandemic on guesthouses in South Africa and the response measures adopted by this sector. Through online surveys, the empirical results show that guesthouse operations were severely disrupted by the pandemic, leading to a critical decline in revenue and a pronounced threat to job security. Despite implementing various response measures and strategies, guesthouses were somewhat concerned about the future of their businesses due to the uncertainty of the pandemic. This research can assist in developing intervention measures to support guesthouses in addressing the economic challenges brought about by the COVID-19 pandemic.