In common with the rest of the world, the tourism sector of South Africa experienced the radical impacts of COVID-19. The magnitude of the pandemic will reshape existing patterns of tourism demand and supply which need to be understood and researched for designing appropriate policy interventions. Little knowledge exists to understand how COVID-19 has affected the supply and demand of tourism products in South Africa. It is against the background of the rolling COVID-19 pandemic, its devastating impacts for tourism and of initiatives for re-igniting demand focused on domestic tourism that this research was undertaken. The aim of the study is to assess the impact of COVID-19 on the demand and supply of tourism products, with a view to propose interventions to meet the needs of tourists, particularly domestic tourists, post COVID-19 through an approach of undertaking case studies of local destinations offering a different mix of tourism products. The research involved a demand-side and supply-side analysis. The demand-side involved a desk top review of existing international literature relating to COVID-19 and consumer travel intentions. The supply-side of the research was done through the approach/lens of undertaking case studies of local destinations each of which offers a differing mix of tourism products and thus of challenges/opportunities. From the demand-side and supply-side analysis the results from this investigation point to a total of 13 policy recommendations for the Department of Tourism in addressing the impact of COVID-19 on changing tourism demand and supply.

The overall aim of the study is to explore the impact of COVID-19 on the Tourism-Transport Interface in South Africa with a view to proposing a scenario where this relationship might create opportunities for tourism to prosper post COVID-19. The research followed a three-step process beginning with a systematic description, based on literature and secondary data, of the overall tourism/transport interface and the modes of transport, with particular reference to air and road transport. Thereafter interviews with senior stakeholders in the airline, bus/coach and car rental industries were conducted. The third step in the research method was to conduct scenario planning workshops with leaders in the aviation (completed), car rental (completed) and coach/bus travel (pending) sectors. While history has had a strong influence on modal choice for tourism purposes in South Africa, current pre-COVID challenges in the transport sector such as consumer behavior, transport policies and regulations, infrastructure and resource limitations are affecting international, regional and domestic tourism.

In South Africa, the contribution of the public sector to economic growth cannot be understated. The contribution can take place through several channels, including via the tourism sector. The chained- tourism activities that result from direct government expenditures are characterised in this report as consisting of the public sector-generated tourism value chain. The chained-tourism activities are triggered when a meeting, conference or event requires government personnel to be away from their usual environment for at least 24 hours. Such absence requires that transport and accommodation, as well as food and beverages, be both organised and paid for. Certain suppliers benefit from the government expenditures incurred by providing transport, accommodation, food and beverages, or other services to the travelling government personnel within the value chain. The amended Tourism B-BBEE Sector Code gazetted by the Department of Trade and Industry in November 2015 seeks to ensure that the economic benefits of the booming tourism sector accrue to previously disadvantaged races as well as to the more traditionally privileged. Using government expenditures on tourism-related activities between 2013/14 and 2017/18, and the suppliers registered with the National Treasury, the study examines the value chain of the tourism sector generated from the public expenditures, and it attempts to determine the type of enterprises that benefit from within the value chain. The findings of the study are earmarked to produce policy recommendations that will aid the promotion of economic transformation that are set to enable the participation of previously disadvantaged races in the tourism value chain, particularly in terms of improving access to the procurement channels involved.