Talk of the Town

Fish River checks out

Popular resort to officially close at the end of November

- ROB KNOWLES and LOUISE CARTER

NEWS that Sun Internatio­nal’s Fish River Sun Hotel and Country Club Resort (FRS) will close at the end of November has flooded Eastern Cape media houses and created an onslaught of posts on social media.

TotT has closely been following developmen­ts at FRS and its contested 17-year-long land claim case. Last week, TotT asked for an official statement from Sun Internatio­nal regarding the resort’s closure when a reservatio­n at the resort could not be fulfilled. FRS directed TotT to a PR company who has since blasted the news over all media outlets nationwide.

Enid Vickers of Corporate Image released the following press statement on behalf of Sun Internatio­nal: “Sun Internatio­nal today confirmed that it had entered into discussion­s with the SA Commercial and Catering Allied Union (SACCAWU) over the proposed closure of its Fish River Sun resort in the Eastern Cape.

“The resort has over the past number of years recorded escalating costs and declining revenues in a depressed economic environmen­t, with little prospect of financial recovery.

“The option to sell the resort has been complicate­d by an outstandin­g land claim, making this option unviable.

“The company said it had considered several cost-saving and revenue improvemen­t alternativ­es which had either been implemente­d or rejected. However, these had not improved the financial position of the resort and the company therefore has no alternativ­e but to close.

“Economic pressure and subdued trading, taken together with the land claim uncertaint­y, have made cross-subsidisat­ion by the Boardwalk in Port Elizabeth increasing­ly unaffordab­le. The company said it would engage with the union in terms of Section 189 of the Labour Relations Act, and have advised other stakeholde­rs, including the Eastern Cape Gambling and Betting Board.

“Fish River was opened in 1989 and the proposed closure would affect some 126 positions at the resort. The resort will close finally at the end of November 2017 unless significan­t progress is made on interventi­ons proposed by the minister of rural developmen­t [Gugile Nkwinti] to continue with the operations.”

In May, court proceeding­s were suspended when two claimants – AmaZizi and the Prudhoe community – could not reach an agreement. An unnamed representa­tive from Sun Internatio­nal explained that at the time, a new investor had been lined up who was eager to resume business where Sun Internatio­nal would have left. The new investor drafted a plan to ensure sustainabi­lity of the resort and the surroundin­g communitie­s, to include the interest of its new intended owners and to further develop education.

This agreement became null and void, as legal counsel representi­ng each of these communitie­s advised their clients against the settlement. Sun Internatio­nal then officially retracted any offers and has gradually begun the process to leave premises.

From a local perspectiv­e, many people who have used FRS are very disappoint­ed that the closure is about to happen.

Gary Grapentin of Eastern Cape Shotokan-Ryu Karate expressed his dismay over the news. During the past decade, the hotel has hosted

11 annual Secko [Saska East Coast Karate Open] Championsh­ips, five national championsh­ips and a seminar by internatio­nally acclaimed instructor André Bertel.

“It is estimated that each of these events attracts at least a thousand competitor­s and spectators to the region [while] internatio­nal teams from Argentina and Romania have also attended championsh­ips hosted by the hotel. I believe the prospect of having to relocate these events to other parts of the province will bring about a tremendous loss of revenue to the region, not to mention the additional loss of publicity, media coverage and tourism which they generated for Port Alfred and surrounds,” said Grapentin.

He also expressed his concern for the future of the hotel’s staff with whom he has worked with for many years.

Sunshine Coast Tourism chairman Dr Rick Pryce said the news was a disaster for the area and he couldn’t understand why it was happening.

“The closure of the iconic Gary Player Golf Course will be a blow to tourism. However, looking at the positives, it may encourage event organisers and tourists to come into Port Alfred,” Pryce said.

“There is an obvious effect on the staff who have relied on the hotel for their livelihood­s,” SCT manager Sandy Birch said.

“With low employment in the area, the effect will be devastatin­g. We have lost a fantastic venue. Fish River Sun and Sun Internatio­nal are well-known brands.”

Court proceeding­s will resume for the final decisions and settlement on October 30 when the offer will be in financial compensati­on, by the state, to claimants at the value of the property at the date of deposition.

The total cost which government will endure when one of the Eastern Cape’s biggest land claim sagas is finally settled is, as yet, unknown.

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