South Africa Energy Crisis: What it Means for Travel

Recently, South Africa’s president Cyril Ramaphosa declared a “state of disaster” in response to the country’s failing power grid. According to Reuters, the issues stem from—among myriad reasons— delays in building new coal-fired power plants, criminal sabotage and too much red tape preventing private providers from bringing renewable energy on tap. The New York Times reports that the result is daily power outages up to 10 hours, food spoiling and businesses closing.

Obviously, there is a much bigger problem here—but what does all this mean for travel? Essentially, nothing, according to the numerous people on the ground that we spoke to.

These energy supply constraints are, unfortunately, nothing new for South Africa, as they have been in place since 2007. If you have visited in the last 16 years, you have likely already dealt with it. Much of the recent concern centers around President Ramaphosa’s state of emergency declaration during his “State of the Nation” address—but this is being used as a way to shift resources to better tackle the problems, as well as cut some of the red tape preventing private companies from providing additional supply for residents and businesses.

Good to know: There are already many programs in place aimed at improving/diversifying the infrastructure, according to Jerry Mpufane, president, North America for South African Tourism. One such example is the Green Tourism Incentive Program, which provides grants to privately owned tourism enterprises to adopt responsible tourism practices, including the procurement of energy supply. Due to the state of emergency, these programs will now have an easier time being put into effect.

As for what impact this will have on visitors, many hotels/accommodation providers, ground transportation, airlines and beyond already have generators to ensure smooth operations during loadshedding. As noted, the energy restraints aren’t new, so many suppliers have long since procured back-up energy supplies. Even better, safari camps already had the ability to operate off the grid if need be—and many are reliant on renewable energy rather than generators.

Within major tourist destinations, such as Cape Town, nearly all hotels have their own back-up power. The only “disruption” guests might experience, according to Matt Biden, CEO of The Royal Portfolio, which owns and operates several hotels, luxury lodges and residences in South Africa, is a quick dip in the lights when energy shifts from the electric grid to the back-up generator. Other potential issues include having to log back onto the Wi-Fi if a call gets disrupted by the switch or having to turn your air conditioning back on.

Biden adds that beyond accommodations, visitors might experience some traffic delays due to traffic lights being out, or some menu items at restaurants being unavailable—such as the calamari needing to be grilled instead of fried because the fryer relies on electricity. Sherwin Banda, president of African Travel, Inc., a safari operator with a presence in 14 African countries, including South Africa, adds that visitors may see a bit more disruption the further from the main tourist sites they go. For instance, Cape Town’s V&A Waterfront operates on its own power supply, therefore it isn’t reliant on the government and isn’t facing any sort of restraints.

So, there are some instances where travelers might not have a completely seamless experience. But, all in all, Travel Agent was assured there is no reason for concern, rebookings or cancelations. As Banda, tells us: “As far as visitors are concerned, there’s no energy crisis in South Africa.”

Banda adds that, as far as African Travel, Inc. is concerned, it vets all of its partners to make sure they can offer uninterrupted service. “From a luxury perspective, regardless of which city they go to or what experience they're going to have, guests are going to have the full experience without the headache of having to manage or factor in energy disruptions,” he says.

One issue with so much of the industry (and country) relying on their own back-up generators is that it’s not very sustainable. For one, Biden says, the generators are running more than they used to and, two, that burns a lot of diesel—which is both expensive and bad for the environment. To combat this, Biden says The Royal Portfolio is putting in hybrid systems at its properties. They will have the ability to run on the grid, but back-up power will be generated by solar and batteries; at Africa House at Royal Malewane, which is currently being renovated, the team is installing hydronic systems, which uses thermal panels and water to generate heat. And, as an added perk, leftover heat (say, to cool down a room) can be used to heat the pool. “You will have an enhanced guest experience, plus you’re using less power,” he says.

Both Biden and Banda tell us that neither has had any cancelations due to the energy crisis. Banda adds that the only travel advisors who had questions/concerns were those who were new to selling Africa. Mpufane tells us that he has not received any external concerns about the country’s energy supply constraints. If anything, he says, demand for South Africa—both for leisure and business travel—is on the rise, with the U.S. being its fastest-growing overseas market.

Biden is hoping that this doesn’t cause a slowdown in visitation to South Africa—as some did due to the massive drought in 2018. Tourism, he says, is “crucial” to conservation. “We say the greatest conservationists are tourists because the tourist dollar is what enables the protection of animals and looks after the communities.” Not being able to have “chips” at the restaurant is “not a big deal in the end, but the impact people have traveling here (to South Africa) is huge,” he adds.

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