In our survey, we asked you whether you believe that your BSP refunds would exceed forward sales. It is very evident that has already happened and that is going to have a severe impact on your cash flows.
Until the end of April, South African travel agents are on a monthly remittance. That means that you are remitting money this month for sales that took place prior to the travel ban and prior to this crisis. That places immense pressure on you in the immediate short term.
For most countries that have already switched to fortnightly or weekly remittances, they have been asking questions about the opportunity of possibly extending the remittance cycles and to see whether or not IATA will consider that.
I can tell you that IATA are not interested in reviewing BSP remittance cycles at this stage.
The motivation and the reason that IATA said they did not want to review the remittance periods is because they are of the opinion that you will be switching from a paying phase, i.e. you are remitting cash over for sales into the BSP, to a receiving phase. In other words, you will be getting more money through refunds then you are currently paying out on your remittances.
We will continue to lobby IATA.