eThekwini predicts boost in economy this Diwali as Gauteng residents flock to Durban to celebrate

Picture: EPA/SANJEEV GUPTA

Picture: EPA/SANJEEV GUPTA

Published Nov 3, 2021

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Durban: Diwali is expected to give the KwaZulu-Natal tourism sector as well as the economy a boost.

Msawakhe Mayisela, the spokesperson for the City, said about 45 000 visitors were expected to mark the Hindu festival of lights with most coming from Gauteng.

It is expected these visitors will spend about R130 million and contribute R325 million to GDP.

The City is confident people will come to Durban for Diwali now that the Covid-19 lockdown is at level 1.

“Most people could not travel last year because of fears about Covid as well as the restrictions on gatherings. It is of our understanding that people who come to Durban for Diwali are visiting with friends and relatives so the majority will stay with family and friends."

He said while at least half of those who came to Durban stayed with family and friends, others booked accommodation.

Michelle Shelley, the marketing manager of the Gateway Shopping Mall, said: “Whilst the past 18 months have sent the retail industry on a rollercoaster ride, we are starting to see more stable patterns and trends emerge in terms of sales.

"It is evident that the public are feeling more confident to be out and about – most likely as a result of the national vaccination programme and lower lockdown restrictions. Taking these trends into account, and with the country currently on Level 1, we believe Diwali will be celebrated at similar levels to pre-Covid times."

She said supermarkets were seeing greater volumes of trade than in 2019.

“Speciality stores which typically feel the boost that Diwali extends from a turnover perspective as well as apparel and gifting stores are trading well. We expect to see an upswing in foot traffic to these stores over the next few days."

Generally, the mood is more upbeat than a year ago.

Sandy Dayaram, the owner of Rosewood Boutique, said: “The profit margins may be low but we are riding the storm. We are thankful that we have managed to keep all our branches open following the start of the pandemic, which left us in a confused state. We have survived the worst and are grateful to our staff who stood by us during this trying time.

“After Covid began, there was a shortage of shipping containers for import purposes. Air freight stopped for a while, but when it reopened, the container charges tripled and this resulted in an increase in the cost of goods. Our sales figures are definitely not the same as they were prior to Covid-19. Our sales have dropped by about 30% but this is the new normal.”

She said this year, they had seen an interest in people wanting eastern clothing for Diwali, particularly punjabis.

The boutique, which was started 20 years ago, has branches in Durban central, Phoenix, Chatsworth and Umkomaas.

Ashu Patel, the manager of The Sabah Collection in Chatsworth, said they have experienced a 20% drop in sales.

“During the hard lockdown, when we had to close, we experienced tough times. The Diwali season is generally the time when the shop makes the most revenue. This year, things are looking up as customers are flocking for eastern wear.”

The Sabah Collection also has branches in Ballito and Phoenix.

Kalyan Sahai, who organises the Diwali India Shopping Festival at the old Durban Drive-in site, said the stallholders had told her that there was a 50% drop in their sales.

“We have been hosting Diwali fairs for 10 years and these fairs provide casual work opportunities. All the companies that have stalls at the fair are local but their suppliers are from abroad. The importing costs have doubled since Covid and the turnout to the fair has reduced. It is understandable as people are being cautious.”

The festival will end on Sunday.

Anand Pillay, the events manager for the Indian Shopping MELA that was held at the Greyville Racecourse, said: “Before Covid, the exhibitors were interested in the South African market. After Covid, the market dropped and a lot of the exhibitors faced financial challenges. They were unable to travel to South Africa and conduct business.

“As a result, the number of exhibitors at the event this year was reduced. We had about 50% local exhibitors. The foot traffic also reduced but the small number of customers was enough to keep the event going.”

He said their sales have dropped by about 60% and that some people had shopped for Diwali and weddings, which were postponed due to the lockdown restrictions.

“I hope that the economy will strengthen and international traders return.”

Meanwhile, sales of fireworks have been slow although retailers are hoping that it will pick up ahead of Thursday.

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