This is how attracting Chinese tourists can help SA industry recover, suggests hospitality expert

News24 – 09 January 2023

China had the world's largest outbound tourism market before the pandemic.

• China is about to open its borders for international travel after imposing strict travel bans when the Covid-19 pandemic started.
• In 2019, the number of outbound Chinese tourists peaked at nearly 155 million, of which just over 93 000 chose SA.
• The national chair of hospitality industry body, Fedhasa, says the Chinese market can help the SA tourism industry recover.

China is about to reopen its borders, and now is the time for South Africa's tourism industry to capture a slice of this lucrative outbound tourist market, says Rosemary Anderson, the national chair of hospitality industry body, Fedhasa.  

The South African tourism industry was hard hit by Covid-19 travel restrictions, says Anderson, and attracting visitors from China could be one way of boosting recovery.

China had the world's largest outbound tourism market before the pandemic.

In 2019, the number of outbound Chinese tourists peaked at nearly 155 million. South Africa only attracted just over 93 000 Chinese travellers. 

"There are hopes that the pent-up demand for travel likely to exist in China could benefit South Africa in 2023. Of course, the opportunity of increasing inbound arrivals from China must be seen within our priority to keep South Africans safe," says Anderson.

"We are confident our government authorities will lead with science to ascertain whether or not it is necessary to introduce screening measures for incoming travellers from China as other countries have done."

Several countries are introducing Covid-19 testing and other measures for travellers from China. This has evoked criticism from the Chinese government as well as some in the travel industry.

The International Air Transport Association (IATA), for example, sees such measures as a "knee-jerk reinstatement of measures that have proven ineffective over the last three years".

"Governments should listen to the advice of experts, including the WHO, that advise against travel restrictions. We have the tools to manage Covid-19 without resorting to ineffective measures that cut off international connectivity, damage economies and destroy jobs," states IATA.

'Massive potential' 

Anderson says there are ways in which SA can make itself a more attractive destination for Chinese tourists.

"South Africa has long sought to attract Chinese travellers, but numbers have remained low. We hope that as part of [the SA government's] efforts to ease visa applications, our government will recognise the massive potential held by the Chinese market in helping our recovery," says Anderson.

Furthermore, she points out that it would be a mistake to assume that the Chinese market is homogenous.

"There isn't such a thing as a 'Chinese tourist'. Like any market, they are diverse in their budgets, ages, interests and travel motivations. Well-heeled Chinese tourists transformed destinations, like Las Vegas and Perth, with their luxury travel spend," says Anderson.

Countries like Australia, the US and Japan - all popular among Chinese travellers - have introduced several initiatives to improve their attractiveness over the years. Some initiatives include employing aligned public and private sector marketing initiatives specifically aimed at the Chinese market. For example, ensuring destination and product information is available on Chinese search engines and marketing on Chinese social media channels, like Weibo and WeChat. 

"We should also have a strong trade focus as much of the international travel booked from China is done through travel agents and tour operators," says Anderson.

Other ways to become more "Chinese tourist-friendly" include offering payment platforms, like WeChat Pay and Alipay, being aware of when Chinese holidays take place, learning key phrases in Mandarin, and training tourist guides to speak Mandarin. One can also offer dining experiences aimed at Chinese tastes.

"It would be useful for establishments and their staff to undergo some form of 'China readiness' training beforehand," suggests Anderson.

Michael Puffet, business development manager of booking platform Profitroom South Africa, says after the pandemic, it seems tourists want to add meaning to their international travels.

"Trying to predict the future is always a tricky business, but barring any more black swan events, we are confident that SA's travel industry will continue to show signs of improved health," says Puffet.

"By using technology [to gather data about] people's desires for more meaningful, flexible or holistic travel experiences, [one] can not only help ensure the sustainability of the travel industry, but the places people travel to as well.

www.samigration.com

Anyone can live and work in Svalbard visa-free — just don't run out of money, and abide by its rules

Svalbard, a Norwegian archipelago by the North Pole, is one of the world's only visa-free zones. 

• But residents who can't support themselves or find housing can be expelled by the governor.
• Insider spoke with four locals (one of whom was deported) about what it's like to work in Svalbard.

In a world where your passport dictates where you can live, travel, and work, there's a semi-frozen haven open to citizens of all countries — no complicated visa or employment permits required. 

Svalbard, a Norwegian archipelago 500 miles from the North Pole, is home to the world's northernmost human settlement. The 2,300 residents of the capital, Longyearbyen, include people of over 40 different nationalities, few of whom are "from" Svalbard, per say. 

That's because you're not allowed to give birth on Svalbard — one of the many strange rules that govern existence on the remote collection of islands covered by ice. 

There are surprises of course, whom the town endearingly calls "Svalbard babies" even when they're grown, Cecilia Blomdahl, a popular content creator based in Longyearbyen, said in an interview with Insider. 

Among Svalbard's other odd rules left over from its days as a coal mining town include a monthly alcohol limit (24 beers, half a bottle of fortified wine, and one bottle of liquor), and a ban on cats to protect the bird population. 

But the most important rule of all: Don't run out of money. And certainly don't find yourself without a home. 

While the Svalbard treaty of 1920 permits anyone to live and work on the archipelago indefinitely, its open borders come with an asterisk: You must have enough money to support yourself and a roof over your head, or risk expulsion from the territory.

"You can stay here for as long as you can take care of yourself," Blomdahl said. "That means how you get to work, how you live, your housing — nothing will be provided for you."

Despite being a sovereignty of Norway, Svalbard employees pay an 8% income tax and local businesses contribute zero taxes toward the country's national insurance program (the mainland's current tax rate is 14% and 22% respectively). As a result, there are no retirement homes, public transport, homeless shelters, unemployment benefits, or really any social safety net you can think of. 

Nobody understands this trade off quite like Mark Sabbatini, the founder and editor of IcePeople, "the world's northernmost alternative newspaper," who was kicked off Svalbard in 2021 after living in Longyearbyen for over a decade. 

He moved to the island from the US in 2008 with around $1 million dollars in the bank and ambitions to launch an English-language newspaper, Sabbatini told Insider. 

Global immigration news

Smith Stone Walters| 3 January 2023

This week, the Global Immigration team at Smith Stone Walters would like to highlight the following recent updates from the European Union, Ireland, Lithuania and New Zealand.

European Union: Croatia becomes latest Schengen country

The European Council has decided to extend the Schengen Area to Croatia, but not yet to Bulgaria or Romania.

From 1 January 2023, checks on persons at internal land and sea borders between Croatia and the other countries in the Schengen area will be lifted. Checks at internal air borders will be lifted from 26 March 2023, given the need for this to coincide with the dates of IATA summer/winter time schedule. From 1 January 2023, Croatia will also start to issue Schengen visas and will be able to make full use of the Schengen Information System.

Since its accession to the EU, Croatia has applied parts of the Schengen acquis, including those related to the external border controls, police cooperation and the use of the Schengen Information System.

Ireland: Single application procedure for employment permits and immigration permissions

The Irish government has agreed in principle to develop a single application procedure for employment permits and immigration permissions. An interdepartmental working group will be established to develop an implementation plan and associate timeframes.

Currently to work in Ireland, a person from outside the European Economic Area has to first make an application to the Department of Enterprise, Trade and Employment for a work permit, and then make a second application to the Department of Justice for an immigration permission.

Eight weeks is the average processing time cited by the Department of Justice for employment and study visas. The processing time can vary across the visa office and embassy network depending on local circumstances.

All Employment Permit applications are currently being processed in between 3 and 5 business days by the Department of Enterprise, Trade and Employment.

Lithuania: Temporary residence permits to be issued in 34 countries from 2023

From 2 January 2023, foreign nationals can apply for temporary residence permits in 34 different countries via VFS Global offices. Previously, applications for a temporary residence permit could only be submitted by booking an appointment at the Migration Department after the applicant had legally arrived in Lithuania.

Citizens of all foreign countries can apply to VFS Global offices, regardless of whether they reside in the country where such services are provided.

Countries where VFS Global will have offices include Albania, Argentina, Armenia, Australia, Azerbaijan, Brazil, Canada, Georgia, India, Israel, Japan, Jordan, Kazakhstan, Kyrgyzstan, Libya, Malaysia, Moldova, Nepal, New Zealand, Philippines, Singapore, Republic of South Africa, South Korea, Sri Lanka, Taiwan, Tajikistan, Thailand, Turkey, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uzbekistan, Venezuela.

VFS Global is authorized to provide customers with information on the procedure for issuing temporary residence permits, accept applications and mandatory documents, collect personal and biometric data, and transfer them to the Migration Department. In all cases, decisions on the issuance or non-issuance of a temporary residence permit will be made by the Migration Department in 1 to 3 months.

VFS Global will also be obliged to collect Lithuanian state fees for the services. Acceptance, examination, decision-making and document issuance of an application for a temporary residence permit are generally charged at 120 euros.

After the Migration Department makes a decision to issue a temporary residence permit in Lithuania, the produced card will be sent to the applicant, who will be able to enter Lithuania with a valid residence permit and will not need to obtain an additional visa. If a foreign national has a visa that entitles them to enter Lithuania, or uses the visa-free regime, they will be able to pick up an already-issued temporary residence permit card in Lithuania.

In addition, from 2 January 2023, amendments to the Law “On the Legal Status of Foreigners” enter into force, according to which the deadlines for examining applications for temporary residence permits are shortened by 1 month.

New Zealand: Range of visa updates announced

Several changes to New Zealand’s immigration rules were announced in December 2022.

Straight to Residence Green List pathway

From 15 December 2022, registered nurses and midwives will move from the Work to Residence to the Straight to Residence Green List pathway. All medical doctors will also be included on the Straight to Residence pathway. From March 2023, auditors will also be added to the Straight to Residence Green List pathway.

Work to Residence Green List pathway

It was also announced that the following professions will be added to the Work to Residence Green List pathway from March 2023:

• Civil construction supervisors
• Gasfitters
• Drainlayers
• Skilled crane operators
• Skilled civil machine operators
• Halal slaughterers
• Skilled motor mechanics
• Skilled telecommunications technicians
• All secondary school teachers (in addition to the specialisations already on the Green List)
• Primary school teachers

The Green List will next be reviewed in mid-2023

Open Work Visa for people unable to use Post Study Visas in 2020–2021

People who held a Post Study Work Visa but were unable to use it due to the border closing in March 2020 will be eligible for a 12-month Open Work Visa if they’re not already in New Zealand on another visa.

Pathway for Critical Purpose Visitor Visa holders staying in same role

The government is introducing a streamlined Specific Purpose Work Visa that long-term critical workers can apply for to allow them to continue to work in their current role for up to three years.

The process will be streamlined, so the only employment-related information an applicant needs to provide is a letter from their employer confirming that they remain employed in the same role and on the same (or better) conditions as those that were approved in the Critical Purpose Visitor Visa application.

Accredited Employer Work Visa (AEWV) employer accreditation extension

Employer accreditations under the Accredited Employer Work Visa will automatically be extended by 12 months if their first accreditation is applied for by 4 July 2023.

This one-off extension will provide employers with certainty as we head into 2023 that they will continue to have access to skilled labour without the additional cost and administrative burden of reapplying for accreditation.

Expansion of the accreditation system to cover all migrants, including those with open work rights will be deferred until 2024. The delay will allow Government to progress other priorities like the review of the Skilled Migrant Category and family and partnership immigration settings.

Sector Agreement for bus and truck drivers

Bus and truck drivers will have a time limited residence pathway through a sector agreement. Officials will consult with transport sector representatives in the development of the agreement.

www.samigration.com

What happens if your landlord sells the property you’re living in.

It is not uncommon for a rental property owner or landlord to decide to put the property up for sale. The question then arises as to what happens to the tenant. While it is usually advisable that landlords or property owners wait until the end of the lease before they sell the property, that is not always possible.

According to rental agents from the Seeff Property Group, tenants should be aware of their rights in such a case. There are certain legal rights, but the rental agreement should also make provisions for this as a safeguard.

The first aspect is that the property owner is always free to sell at any time, but the lease agreement will remain valid and in full force until its expiry date. The property owner cannot cancel the lease because of the sale. Only a breach on the part of the tenant can result in legal action and cancellation.

The tenant’s right is guided by the legal principle of ‘huur gaat voor koop’. This is a Roman-Dutch legal principle which translates to the ‘lease trumps a later sale’. The tenant is therefore entitled to remain in the property until the lease expires.

The tenant could, however, in terms of the Consumer Protection Act, cancel the lease by giving 21 days written notice and following the cancellation procedure, which will include payment of a cancellation penalty as prescribed in the rental agreement, or as may be reasonable.

The lease agreement may, in any event, include a provision to allow the tenant the opportunity to cancel the lease on certain conditions, usually the payment of a reasonable penalty. If there is no such agreement or cancellation, then the lease simply transfers to the new owner and continues.

Once the property owner decides to put the property up for sale a number of activities will likely need to take place. The owner should discuss the sale with the tenant before the time. There should also be a clause in the rental agreement which sets out what happens when the property goes up for sale.

This should include access to the property for viewings and possibly also for photography and an inspection by the listing agent. The lease agreement will usually state that the tenant should be amenable and provide reasonable access, but this should be arranged for a convenient time and with minimal disruption to the tenant.

There may also be a need to put up agency boards such as ‘for sale’ and ‘sold’ signboards at the premises, as well as those which would be displayed during viewings.

Show days will require the tenant to be out of the property and these should preferably also be provided for in the lease agreement. The property owner or landlord should ensure they make appropriate arrangements with the tenant.

If no new lease agreement is entered into with the new owner, the tenant will simply vacate the property. Prior to moving out, an outgoing inspection should be done to verify the condition of the property. The rental deposit must be refunded to the tenant, net of any deduction for damages agreed to.

Chris Yelland | Not just dark: SA's electricity, energy sectors offer significant opportunities

News24 | 09 Jan 2023

There would be good cause for pessimism if we were doing much of the right stuff, while still remaining stuck in the current mess.

The purpose of this article is to highlight the substantial challenges that we should be addressing, and, in so doing, appreciate and understand the significant opportunities that exist by successfully addressing just some of these.

Energy and electricity policy

South Africa has experienced a backward-looking failure by leaders at the highest level to understand and respond to challenges facing the international and local energy and electricity sectors, and to adapt accordingly.

Over-complicated and outdated oversight and governance arrangements by an excessive number of government departments and agencies, together with inadequate policy, regulatory, planning and oversight capacity for the electricity supply and distribution industries of South Africa, are plainly evident.

These governance and oversight bodies include the Department or Mineral Resources and Energy (DMRE), the Department of Public Enterprises (DPE), National Treasury, the Department of Cooperative Governance and Traditional Affairs (COGTA), the Department of Forestry, Fisheries and the Environment (DFFE), the National Energy Regulator of South Africa (Nersa) and the South African Local Government Association (Salga).

At the same time, ongoing energy and electricity policy uncertainty, combined with mixed messaging emanating from the Presidency, the Presidential Climate Commission (PCC), National Treasury, DMRE, DPE and DFFE, is adding to the toll which regular load shedding is taking on economic growth, business confidence and investment.

In 2022, the frequency and intensity of load shedding to protect the national grid reached new record highs. Data from renowned load shedding app, EskomSePush, indicates that the national utility failed to deliver an estimated 11 797 GWh of energy during 3775 hours of rolling power cuts in 2022, some 4.73 times higher than the 2496 GWh of unserved energy resulting from 1153 hours of power cuts in 2021.

There is clearly a need for more consistent, coherent and well-articulated energy and electricity policies and strategies in South Africa. However, there is an apparent inability and/or unwillingness by politicians and government to recognise, take accountability for and/or confront the worsening energy and electricity crisis head-on.

Electricity regulation

The current electricity regulatory framework in South Africa is no longer fit-for-purpose in the rapidly changing global energy and electricity environment, and there is inadequate policy direction, capacity, regulatory independence and flexibility to adjust and adapt the country’s regulatory framework to something more appropriate.

This is evidenced by ongoing regulatory failures in the electricity sector as indicated by several court judgements against Nersa, following legal action by Eskom challenging the regulator’s electricity price determinations and methodology.

Ongoing delays in promulgating amendments to the Electricity Regulation Act (ERA) that would provide the necessary legal, regulatory and planning framework for a restructured electricity supply industry are also holding back reform of the electricity sector.

Electricity pricing

Failure by Nersa to implement consistent, predictable and sustainable cost-reflective electricity tariffs in South Africa has significantly damaged Eskom and the economy. 

Delays in putting in place an amended national electricity pricing policy and methodology for the country are further inhibiting reform and restructuring of the electricity supply and distribution industries.

In the meantime, ongoing applications by Eskom and municipal distributors to Nersa for extremely high electricity price increases under the current arrangements are fuelling inflation, making electricity unaffordable and increasing electricity theft, non-payment and municipal arrear debt.

Despite several years of discussions, Nersa and municipal electricity distributors have failed to prepare and implement a national municipal wheeling framework and associated wheeling tariffs for transport of electricity across municipal networks from distributed generators to off-takers embedded with municipal networks.

Similarly, Eskom and most municipal distributors still do not have Nersa-approved feed-in tariffs for domestic, commercial, industrial, mining and agricultural solar photovoltaic and battery energy storage installations, and do not yet permit generation into the network by low-voltage electricity customers.

Energy and electricity planning

The absence of a comprehensive national integrated energy plan (IEP), an updated integrated resource plan for electricity (IRP), and coal, liquid fuels and gas roadmap plans for South Africa, is a sign that planning in the energy and electricity sectors is far from adequate.

There have been execution delays and poor communication of progress made in implementing concrete plans and actions to end load shedding fast by the National Energy Crisis Committee (Neccom) announced by the President on 26 July 2022.

For example, there is a lack of any visible implementation of the easiest and fastest actions in the emergency plan to end load shedding, namely, to allow, encourage and incentivise domestic, commercial and agricultural electricity customers to supplement their grid electricity needs with embedded solar photovoltaic and battery energy storage systems.

New generation capacity

The process of ministerial determinations and concurrence by Nersa for new generation capacity procurements in accordance with an outdated integrated resource plan for electricity, is slow, bureaucratic and no longer fit-for-purpose.

Unrealistic localisation requirements, changes in local and international energy and electricity business environments, and difficulties in obtaining Eskom grid access, have resulted in failures to reach financial close by many projects of Bid Windows 5 and 6 of the Renewable Energy IPP Procurement (REIPPP) programme. This has caused delays in the procurement and construction of new generation capacity via the Risk Mitigation IPP Procurement (RMIPPP) and REIPPP programmes.

In addition, the gas-to-power, imported hydro, new coal-fired power and battery energy storage public procurement processes of the DMRE’s IPP Office are yet to commence.

With 11 GW of ageing coal-fired power stations due for decommissioning by 2030, and inadequate new generation capacity set to come online in the meantime, the outlook for security of supply in South Africa is bleak.

Eskom

The unsustainable financial, operational and environmental position of South Africa’s national electricity utility, Eskom, has been apparent for years.

Finally, after several years of talk, resolution of Eskom’s debt position by government taking over a significant portion of Eskom’s debt is expected be announced by the end of February 2023. This will strengthen Eskom’s balance sheet and support its financial sustainability, but it does not address the underlying structural issues.

Investments in upgrading, strengthening and expanding the national electricity grid and associated transmission and distribution substations to provide adequate grid access is now critical to avoid grid congestion in certain areas, and to accommodate the connection of new generation capacity.

However, frequent changes in Eskom’s executive management are unsettling, and visionary, forward-looking board and executive appointments are needed to enable Eskom to navigate the existential threats it faces, and to transform to become a utility of the future.

Generation plant performance

Eskom’s poor operational performance is indicated by the declining energy availability factor (EAF) of the utility’s fleet of coal-fired and nuclear-powered base-supply generators, which in the final weeks of 2022 dropped significantly below 50%.

Load shedding in South Africa is worsened by inadequate generation capacity reserves to provide the necessary headroom for the required deep-level maintenance of the poorly performing coal-fired fleet of generators.

To meet demand over the past few years, Eskom has increasingly relied on the use of its emergency, diesel-powered, open-cycle gas turbines (OCGTs) to meet demand, thereby consistently exceeding its diesel budget.

In November 2022, the utility had spent about R12-billion on diesel, double the year’s initial budget. And in the absence of further financial support from government, Eskom was forced to cut back on diesel usage, and implement more intense load shedding.

The failure of Eskom to meet the legally required minimum emission standards (MES) of South Africa at virtually all of Eskom’s coal-fired power stations, with no plans in place to meet these standards in the foreseeable future, poses further massive risks to security of supply in South Africa.

In 2022, the DFFE ordered the shutdown of a number of Eskom coal-fired power stations as a result of noncompliance with the MES for over a decade. The loss of some 16 GW of power generation capacity now hinges on the outcome of an appeal lodged by Eskom.

Municipal electricity distribution

In many areas of the country, the dysfunctional and unsustainable financial and operational state of many municipalities and municipal electricity distributors in South Africa presents as much of a challenge as load shedding by Eskom.

A significant number of municipalities and municipal electricity distributors are unable to meet payments for their current electricity purchases from Eskom, to service their arrear debt, or to meet repayment arrangements on this debt. Municipal arrear debt to Eskom currently stands at above R50 billion.

Most municipalities and municipal electricity distributors also fail to provide free basic electricity to the significant majority of indigent households in their areas of supply, and instead misappropriate about 70% of the funds budgeted and disbursed by National Treasury for this specific purpose.

A backward-looking approach to electricity distribution by the municipal electricity distribution sector and Nersa has inhibited the implementation of feed-in tariffs for embedded generation and battery energy storage in South Africa.

Similarly, electricity distribution sector appears unable or unwilling to formulate and implement a national municipal wheeling tariff framework and associated wheeling tariffs in South Africa.

Payment for electricity

Where there are high levels of overloading due to illegal connections, electricity theft and non-payment of electricity, Eskom has been targeting areas supplied directly by the utility with cut-offs during peak periods, a practice euphemistically known as “load reduction”.

The biggest challenge in these Eskom of supply areas is in Soweto, where the level of non-payment is around 80%, and where a culture of non-payment and resistance to the installation of prepayment meters has existed for decades. Failures in addressing electricity theft and non-payment in Soweto has resulted in Eskom regularly having to write off billions of Rands of arrear debt by residents.

In recent weeks, Eskom has been targeting municipal electricity distributors having high levels of arrear debt with additional rotating cut-offs, over-and-above that required by the normal load shedding schedules. The situation is now approaching crisis proportions, with Salga urging municipalities to resist Eskom’s efforts to recover municipal arrear debt.

Electricity sector reform and restructuring

Despite being a key part of the 1998 Government White Paper on Energy Policy, and the 2019 Eskom Roadmap published by the DPE, delays in electricity sector reform and restructuring continue to this day.

Talk of unbundling Eskom to establish an independent National Transmission Company of South Africa (NTCSA), a diversified competitive generation sector, and day-ahead, balancing and ancillary service electricity markets, is still ongoing.

However, more than a year since it was established as a legal entity and subsidiary of Eskom Holdings SOC, Nersa has still not processed a transmission licence for NTCSA, the DPE minister has yet to appoint a board of directors for the company, and NTCSA is still not operational.

Work on the rationalisation and restructuring of the electricity distribution sector was abandoned in 2010, and the separation of the electrical energy and wires businesses, and the establishment of a competitive retail electricity sector in South Africa, has not even started.

A longstanding disagreement between Eskom and municipalities represented by Salga, in respect of claims by municipalities for exclusive authority over electricity distribution and reticulation in South Africa, will be heard in the High Court in 2023.

However, whatever the outcome in the High Court, the matter appears set to be heading to the Supreme Court of Appeal and Constitutional Court, and the dispute could still take some years to resolve. 

Criminality

Increasing levels of electricity, steel, copper, aluminium conductor and cable theft, as well as vandalism of electricity infrastructure and threats to personnel, are reaching a stage where Eskom and municipalities are beginning to abandon certain areas of supply as "no-go" zones.

In addition, maladministration, procurement irregularities, fraud, corruption, criminality and sabotage within Eskom and its power stations, and at municipalities and their electricity distributors, is a major challenge, to the extent that the army has been deployed to protect assets at a number of Eskom power stations.

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It is evident that there exists a significant lack of capacity by the South African Police Service, by specialised crime investigative, prosecuting and enforcement authorities, and by the justice department, to bring electricity criminals to book.

Conclusion

From the multitude of challenges facing the electricity supply and distribution industries of South Africa, it is clear there are indeed significant opportunities that could be realised by successfully addressing just some of these.

However, a continued failure to address these challenges will have the inevitable result of ongoing economic decline and loss of confidence by citizens and business entities in South Africa, leading to political, economic and social instability.