SA hospitality businesses urged to close winter maintenance gaps

Johannesburg - South Africa's tourism sector is going from strength to strength, creating year-round demand for businesses operating across the hospitality, transport and events ecosystem. In Cape Town, major sporting, cultural and business events are reportedly pushing accommodation occupancy above 80% during peak periods, while the city continues to actively expand the winter events pipeline.

Despite this being great for business, Ryno de Kock, Head of Distribution at PSG Insure, warns that an increasingly active year-round tourism calendar means many hospitality operators have less opportunity to tackle the maintenance and insurance reviews needed to ensure their cover keeps pace with changing operations traditionally undertaken during the winter slowdown.

“As winter tourism gathers momentum, the reality is that some businesses will no longer experience a true off-season. It is critical, however, to still prioritise maintenance during relatively quieter months to address risks that could become costly during upcoming peak trading periods.”

While it may be tempting to only think about insurance when something goes wrong, de Kock explains that it is a standard insurance principle that policyholders must take due care and reasonable steps to prevent avoidable damage. Insurers will therefore also consider whether reasonable preventative measures were taken to maintain a property, vehicle or business asset.

“Short-term insurance is designed to respond to sudden and unforeseen events, not gradual deterioration or damage caused by neglect. Wear and tear is also a specific exclusion in most policies. This means a storm-damaged roof, for example, may be assessed very differently if there is evidence that the roof was already in poor condition, gutters had not been cleared, or known leaks had repeatedly gone unrepaired.”

This is particularly relevant for accommodation businesses, where seemingly minor maintenance issues can quickly become significant during periods of peak occupancy. “A room sitting empty during a quieter period may conceal a leaking roof, faulty geyser, electrical fault, blocked gutter or damaged paving. Left unattended, these issues can impact guest safety, disrupt operations and potentially lead to costly claims,” says de Kock.

The same, he notes, applies to Airbnb and short-stay property owners. “As demand increases around major events, hosts may be tempted to maximise bookings without reviewing whether their cover is still fit for purpose. These owners must check whether they have the correct cover for short-term letting, guest liability, accidental damage, theft, contents, geysers, storm damage, and business interruption where applicable.”

Maintenance and insurance reviews should not be limited to accommodation providers alone. Transport operators frequently experience increased demand when major events attract visitors to cities, placing additional pressure on vehicles and drivers. Where businesses transport fare-paying passengers, it is particularly important to ensure that the correct insurance cover is in place for the nature of the operation.

“Shuttle operators, tour providers and small fleet businesses understandably spend more time on the road during busier tourism periods, increasing their exposure to accidents, breakdowns, tyre damage, theft, hijacking and passenger liability claims,” says de Kock. “It's important to confirm that vehicles are insured for their intended use, that all drivers are correctly disclosed, and that policyholders understand any exclusions relating to commercial activity or passenger transport.”

He adds that businesses should also review whether their level of cover still reflects the scale of their operations. “As businesses grow from seasonal operators to being busy all-year round, many invest in new equipment, expand their services or experience higher turnover. If insurance policies are not reviewed regularly, there is a risk that cover no longer accurately reflects the business, creating potential shortfalls at claim stage.”

Ultimately, de Kock believes winter should still be regarded as a strategic preparation period, despite growing tourism activity during traditionally quieter months. “Tourism businesses have an opportunity to benefit from South Africa's increasingly active year-round tourism and events calendar, but this should not come at the expense of maintenance and risk management,” he concludes. “Working with a qualified short-term insurance adviser can help ensure that properties, vehicles and operations remain appropriately protected, not only for the current season, but also for the busier spring and summer periods that are just around the corner.”