In a blow to the liquor, leisure, travel and tourism industries, President Cyril Ramaphosa extended the ban on alcohol sales by another two weeks on Sunday as the government grapples with the recent surge in Covid-19 infections.
“As things stand now, infections remain extremely high ... we are experiencing a third wave which is worse than the first and second waves,” Ramaphosa said during a televised address on Sunday.
However, he announced that sit-ins will be allowed at restaurants and eateries subject to strict protocols, such as restricting the number of patrons to less than 50% of capacity. Gyms will also be allowed to open, and activities such as agricultural livestock and game auctions will be allowed. Schools will remain closed until July 26.
Ramaphosa moved the country to the highest level of lockdown since the early days of Covid-19 pandemic two weeks ago in a bid to stop the third wave of Covid-19 from overwhelming hospitals, especially in Gauteng where one of the biggest, Charlotte Maxeke, is out of action after a fire.
The tighter curfew, outlawing of all gatherings, and travel restrictions in and out of Gauteng will also remain in place following the review of the level 4 lockdown.
The extension comes as SA continues to register an elevated number of people getting the respiratory disease, recording an average of 20,000 new daily infections in recent weeks. Gauteng accounted for more than half of the new infections, while new cases are increasing in other provinces such as the Western Cape, KwaZulu-Natal and Mpumalanga.
Industry players in the alcohol, leisure, travel and tourism sectors have warned that the current restrictions signal the death knell for recovery efforts.
The alcohol sales bans on three separate occasions in 2020 for a total of 20 weeks have drawn widespread condemnation for the devastating effect on the economy, including R38bn in lost liquor sales, R27bn less tax revenue, job losses and billions in cancelled investment.
The alcohol industry is fighting back against the fourth liquor ban in court, with SA Breweries arguing that there is no scientific evidence that banning alcohol sales reduces the number of Covid-19 infections, while the restaurant and tourism sectors have voiced survival concerns for the industries that have been running on fumes since 2020 when they were cut off from their customers.
“Reducing alcohol harm frees up much-needed capacity in our health facilities to deal with Covid-19 cases. Alcohol abuse is also associated with gatherings and non-adherence to public health regulations,” Ramaphosa said.
He also said the Unemployment Insurance Fund, after consultation with labour and businesses, has decided to extend its wage protection scheme, the Temporary Employer/Employee Relief Scheme, to workers affected by the lockdown restrictions.
Even though the restaurant industry will be breathing a sigh of relief, the continued ban on alcohol sales will hurt recovery efforts.
“The list of restaurants that are closing is continuing to grow, and every minute we are receiving a notification of another closed restaurant,” said Wendy Alberts, CEO of Restaurant Association of SA. With Katharine Child
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