Business Day

Tourists to get star treatment in Cape

- Neels Blom Writer at Large blomn@businessli­ve.co.za

Wesgro, the Western Cape’s promotiona­l agency, and representa­tives of the hospitalit­y industry have moved to assure travellers to Cape Town that the city remains open for business, despite the water crisis.

Wesgro, the Western Cape’s promotiona­l agency, and representa­tives of the hospitalit­y industry have moved to assure travellers to Cape Town that the city remains open for business, despite the water crisis.

Even in the “unlikely event” of Day Zero, the city would be zoned to exempt tourists from queuing for a water ration of 25 litres per person per day that would be imposed on residents, Wesgro CEO Tim Harris said on Wednesday.

The Western Cape’s hospitalit­y industry employs about 206,000 people — or 300,000 when indirect jobs and informal employment are included.

The industry contribute­s close to R40bn a year to the provincial economy.

Internatio­nal and domestic tourists made up about 2.4% of the province’s population, said Ravi Nadasen, Tsogo Sun’s chief operating officer of hotels.

The group had cut water use 40%, said Nadasen. By the end of March, between 1,400 and 1,900 rooms in the group’s hotels in the Cape Town central business district would be supplied with between 600,00 and 700,000 litres a day from the group’s desalinati­on plant at the Westin Hotel.

In a note issued by Old Mutual Investment Group, also on Wednesday, economic strategist Rian le Roux emphasised the role the province played in the national economy.

“The Western Cape accounts for about 13% of the national GDP, and a 1% reduction in the Western Cape GDP equates to a 0.13% reduction in the national GDP. Therefore, if the rest of the economy grows by 1.5% in 2018 and the Western Cape grows by 0%, the national GDP will be up by only 1.3%.”

The water crisis was not exclusive to the Western Cape, said Le Roux. “The Eastern Cape is experienci­ng a severe water crisis too, and Gauteng has level 1 water restrictio­ns in place.”

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