Tourism suffers R600m natural disasters loss

2013-03-26 10:54
Gallery  |  click on thumbnail to view larger image

Hail hits Joburg

The intense hail storm that hit Johannesburg over the weekend left cars and windows smashed and Joburgers reeling. Send us your pictures.

.Johannesburg - Floods in Mpumalanga in January 2012, a number of significant hail storms in Gauteng during October and November and a devastating fire in St Francis Bay in November 2012 have seen an increase in catastrophe claims made in the last year, says South Africa’s largest short-term insurer Santam.

In 2012 Santam paid catastrophe claims of almost R400 million - more than three times the average registered by the group over the past 12 years.
“Last year was especially terrible in terms of losses incurred as a result of floods. The Hoedspruit area in the Northern Province was hard hit by floods in January 2012. KZN and the Eastern Cape also suffered catastrophic flood losses towards the end of the year," said John Fitzpatrick, Managing Director for Santam's Hospitality and Leisure sector.

"The total loss affecting the hospitality industry was in the region of R600 million.

"Risk management for businesses in the immensely diverse and dynamic tourism, hospitality and leisure sector is not an easy task. For any business operating in this extensive industry, part of the formula of ensuring success includes taking special care of the potential risks that could possibly devastate the commercial viability of a business.

“Elements such as changing weather patterns and government regulations such as the consumer protection Act must all be factored in for clients specialising within the sector. The biggest challenge however is to underpin all the associated risk challenges for each client, ensuring that they have the correct protection is in place." he said.

South Africa's many natural resources and heritage sites act as a large tourism draw card earning the country a 17th place ranking for its natural resources and 58th place ranking for its cultural resource in the World Economic Forum Travel and Tourism Report for 2013. With the Department of Tourism pushing to increase the tourism sector's contribution to the economy to R499 billion by 2020, including the creation of 225 000 new jobs, the severity of catastrophic events can sorely impact this aim warned Fitzpatrick.
Read more on:    santam  |  travel south africa

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

SHARE: publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside Travel


#FindYourEscape with Traveller24

Your insider guide to exploring South Africa and the world...
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.