It’s no secret that the pandemic significantly affected practically every industry in South Africa – and even more so the casino and hospitality industries. It was expected that casino groups such as Tsogo Sun and Sun International would report on losses and analysts have been waiting for them to publish their official 2020 financial numbers.
Sun International’s official report showed that its adjusted heading earnings came down from R763 million to a loss of R1.1 billion. Adjusted headline loss per share was 633c.
How Did The Hotel Industry Do?
Sun International runs several very popular and successful hotel properties across South Africa; however the pandemic severely impacted its revenues. As per the 2020 report:
“While the hotel industry has re-opened for domestic leisure and business travel, trading levels remain severely muted. International travel for business and leisure purposes resumed on 1 October 2020 albeit with strict restrictions in place.”
“The easing of lockdown restrictions to level 1 increased domestic leisure travel demand into our resort destinations such as Sun City and the Wild Coast Sun. The Sun Vacation Club at Sun City performed well under these trading conditions achieving occupancies of 79%.”
How Did The Pandemic Affect Sun International Employees?
The casino and hospitality industries were forced to cut jobsand Sun International retrenched just over 2,000 employees across the group last year.
“The closure of our operations gave us the chance to undertake an in-depth review of our processes, operating structures, systems and guest offering and experience. This review resulted in the identification of costs savings in outsource and service provider contracts, IT systems and other general costs of over R250 million in South Africa,” Sun International said.