Tourvest a major loser in SAA strike
Business Day Reporter
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THE South African Airways (SAA) strike has left a gaping hole in tourism group TourvestÆs income statement, with daily revenue down 40%-50% for each day of the strike.
Jonathan Gerber, MD of TourvestÆs outbound division, said yesterday 40%-50% of its spend was with SAA. The grounding of the airlineÆs regional, international and most of its domestic flights had affected the group. He said the groupÆs main focus was on customers.
Concerning travellers stranded overseas, he said: ôWith no flights available in and out of SA, there is not much we can do. But weÆre advising customers of their options and helping as best we can.ö
The strike caps a torrid month for the group and comes on the back of the terrorism attacks in London and Egypt ù both key tourist destinations.
While this may not be an ideal start to the new financial year for Tourvest, Gerber said the group would bounce back next month. ôSouth Africans are resilient travellers, and rather than cancelling their trips, they are more likely to postpone them.ö
The airline strike overshadowed a Tourvest announcement yesterday that it had established a major black-owned travel agency, Lesedi Travel, via consolidation and extension of its existing empowerment operations.
Lesedi will be the exclusive empowerment partner of Tourvest Retail Travel (TRT), which is one of SAÆs biggest corporate travel agencies, and Lesedi will be franchised to operate TRT brands Seekers Travel Group, American Express Travel Services, Indojet Travel as well as Maties Travel.
Lesedi, which incorporates empowerment businesses Seekers Lesedi and Pulanala, will have an effective black ownership of 51% held by employees through a share trust, MD Mntungwa Morojele through the Morojele Trust Fund, and the empowerment investment group Mhalamhala.
Gerber said: ôThe establishment of Lesedi provides TRT with a full empowered partner at a time when (empowerment) is increasingly becoming the key driver in the evaluation and awarding of corporate travel accounts.ö
Tourvest is expected to announce full-year results on August 18.
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