South African hotel, resort and casino behemoth Sun International announced the temporary closure of all of its hotels, casinos and locations due to an announcement made by President Cyril Ramaphosa.
The last 18 to 24 months have been difficult for everyone in the hospitality industry as global circumstances have seen massively reduced tourist numbers all over the world and even locals are staying home far more than they ever have before.
The JSE-listed Sun International has been able to weather the storm and continue operations until now, but Ramaphosa’s announcement of temporary tighter restrictions on movement in the country forced their hand.
It is important to note that this is by no means a permanent solution and the company will be looking to resume operations the second it is deemed prudent to do so. “All of Sun International’s restaurants and casino properties will be temporarily closed from today, in line with new Covid-19 regulations announced by the president,” the group said in a statement. “The group has also decided to temporarily close its hotels and resorts, including Sun City Resort and Wild Coast Sun.”
Safety First
Under the regulations imposed by Ramaphosa, designed to reduce the movement of people and avoid unnecessary interactions between people, Sun International would have had to close their casinos and restaurants anyway. While the resorts and hotels would have been permitted to stay open, the group decided to shut them anyway just to be safe.
“The new regulations require our casinos and restaurants to close, but given the new restrictions on leisure travel into and out of Gauteng, alcohol and the curfew, our hotels and resorts will struggle to operate, so we have taken a decision to temporarily close them too,” explained chief operating officer Graham Wood.
Because of the inconvenience, Sun International is allowing anyone who had a booking up to 15 July to reschedule to another date before 30 November or cancel the booking completely for no charge. This includes deposits that will be refunded on cancellation. “We remain hopeful that the worst of the latest Covid-19 outbreak will have subsided 14 days from now so that we can safely reopen our hotels, resorts and casinos,” Wood added.
Favourable Terms
As a result of the situation, reports suggest Sun International has had to approach its lenders and negotiate easier terms on its loans to be able to meet some of its financial obligations in the short term.
A deal between the group and its debtors, Standard Bank, Absa Group and Nedbank, was easily reached because of the strength of Sun International and its brand, as well as the firm belief that it will bounce back very quickly after the restrictions are eased.
The deal essentially gives Sun International room to breathe and removes any small possibility that it might default during this difficult time. “Absa and the other lenders remain supportive of Sun International and the measures taken by management,” the bank said in a statement to news agency Reuters.
Online Gaming Gathering Momentum
Over in the online gambling scene, things are looking incredibly positive for the South African market. In a world that has seen people move their entire lives online in recent years, it comes as no surprise that online gaming has risen with it.
The situation in South Africa is quite complex, with online casino gambling technically still being illegal while sports betting is not. However, overseas casino sites have been permitted to accept South African players, such as Casino Cruise which is highly rated in this Casino Cruise review and others, and are proving to be very popular with local players.
Reports from Nielsen and McKinsey have shown that South Africans are shopping online 37% more than they used to and that around 80% of the country are trying new shopping behaviours. This has ultimately resulted in about 90% of the population making use of online or multi-channel platforms.