SA company to manage Pigg’s Peak Hotel
µµ The potential operator states that it is passionate about the development of a viable and sustainable tourism industry and also pledges its commitment to the creation of a sustainable business model that becomes an asset for the local communities.
MBABANE – A potential operator for Pigg’s Peak Hotel has been identified as Transfrontier Parks Destinations (TFPD).
In his written responses to Senate, Moses Vilakati, the Minister of Tourism and Environmental Affairs, stated that the contract between the hotel and TFDP was being considered.
The responses were tabled in Parliament.
TFPD defines itself as a consortium of like-minded associates, who are business-oriented social entrepreneurs. They are well-qualified with in-depth experience in finance, marketing, safari activities and hospitality management.
TFDP is a South African company. On the other hand, the Government of the Kingdom of Eswatini is the 100 per cent owner of Pigg’s Peak Hotel.
Vilakati stated in his responses that the section of the hotel that was burnt down has been refurbished. The minister said Pigg’s Peak Hotel participated in the Indaba Tourism which enabled it to encourage tour operators to bring tourists.
The hotel signed contracts with four tour operators, including Springbo Atlas Tours and Safaris.
Springbok Atlas Tours and Safaris is an inbound tour operator based in South Africa. It offers guided Africa tours and safaris, day tours and tailor-made ones in South Africa, Namibia, Zimbabwe, Botswana, Zambia, Eswatini, Lesotho and Mozambique.
Its wide selection of guided tours and African safari showcase the diverse splendours of Southern Africa.
They include the six-day tours along the Garden Route and threeday safari tours in the Kruger National Park. It is also known for its 14-day classic Namibia tour and 10-day Zimbabwe highlights guided holiday.
The signing of the agreements with the four tour operators was meant to guarantee and increase the hotel’s guest occupancy.
STRATEGY
Vilakati mentioned that the Eswatini Tourism Authority (ETA) was in the process of developing a strategy to attract two million tourists to Eswatini. The strategy aims at building capacity for the country to generate E2 billion in tourism receipts by 2025.
Meanwhile, the potential operator for the Pigg’s Peak Hotel stated that it is passionate about the development of a viable and sustainable tourism industry that balances the needs of the local community with those of nature.
It also pledges its commitment to the creation of a sustainable business model that becomes an asset for the local communities. TFDP believes that this can be achieved when all actions are based on respect for nature and people.
The identified operator mentions in its profile that it manages business with sound financial principles, with needs of the local communities, and their development being given priority
TFDP does the following: Develop and manage world class, community-owned tourist destinations that benefit the local communities.
Its tourist destinations and activities in Southern Africa’s Transfrontier Peace Parks and Limpopo Province are environmentally sustainable and ecologically sound.
Identify opportunities with Southern Africa’s Transfrontier Parks and conservation areas to create or redevelop tourist-based businesses.
Bring together the teams to design and construct the lodge. Develop and execute a marketing plan that includes both international trade and local marketing, media, public relations and advertising.
Identify the staffing requirements, hire and train the people; Remain responsible for the dayto-day operations of the lodge. Run a central reservations facility, with online access.
The company also says that it maintains full financial control of development and operational funds, keep a formal and informal channel of communication with the officials of the local community and identify and support local social development projects, and leverage the support of its guests.
The deal with TFDP was proposed amid failure to sign a contract with BON Hotels (Pty) Ltd, South Africa, which also owns and operates hotels.
It failed even though there was hope that the negotiations between the Board of Directors for Pigg’s Peak Hotel and Casino had been concluded.
It later transpired that the deal failed at the last stages of the talks as confirmed by Vilakati in an interview last year.
“There were certain formalities that Pigg’s Peak Hotel and Casino and BON Hotels could not agree on, and I can safely say that the deal has been aborted despite the fact that the negotiations had covered 90 per cent of the focused areas,” said the minister when he was interviewed on this matter.
HOSPITALITY
A consolidated quarterly report for the period ended June 31, 2020 released by the PEU states that the Board of directors for Pigg’s Peak Hotel and Casino had also identified Bamba the Number (Pty) Ltd to run the casino.
With its head office in Century city, Johannesburg, BON Hotels is thought to be one of the leading international hospitality companies in Africa.
The last operator to be in charge of the government facility was Orion Hotels and Resort (Pty) Ltd, which was ordered by the High Court of Eswatini to pay rent accrued from March 2011 to January 2012.
It had escalated to E2 400 819.46 by the time Judge Nkululeko Hlophe delivered judgement on the matter on March 1, 2012.
Pigg’s Peak Hotel had leased out the hotel facility to Orion Hotels for 17 years. However, the operator had occupied the facility for nine years paying rentals.
According to documents, Pigg’s Peak Hotels told the High Court that it had entered into a written lease agreement with Orion Hotels on December 1, 2005 for the occupation of the facility for monthly rentals of E100 000.
DEMONSTRATE RECOVERY
Another hotel company that managed Pigg’s Peak Hotel was Protea.
On another note, Vilakati, the Minister of Tourism and Environmental Affairs, said the tourism sector continued to demonstrate recovery at a relatively strong pace. This was evidenced by international arrivals which accounted for 86.6 per cent year-on-year growth in January to May 2022.
The country welcomed 146 552 inbound visitations compared to 78 538 during the same period in 2021.
He said the gradual recovery was expected to continue throughout 2022 because travel restrictions had been lifted.
In a report detailing the hotel’s situation for the last quarter of 2021, (October-December 2021), the Public Enterprises Unit (PEU) stated that it (hotel) recorded an average occupancy of 31 per cent, which was a six per cent decrease from the previous quarter’s 37 per cent.
Busangani Mkhaliphi, the PEU Director, stated that the net worth of the hotel decreased by 14 per cent compared to 2020 during the same period.
EXPENSES
The hotel’s operational expenses were E5.49 million against E4.59 million incurred in the last quarter, indicating an increase of 19.6 per cent attributable to salaries and dispute settlement payments.
It is said that the hotel had difficulty in developing future plans for sustainability because of the pending issue of finalising the franchising deal and the COVID-19 pandemic.
Total revenue derived by
Pigg’s
Peak Hotel stood at E4.69 million then against E3.71 million collected between July 2021 and September 2021.
The expenditure was higher than the revenue collected as it reached E5.49 million.
In her comments, Mkhaliphi said the hotel did not have tourists coming in despite the fact that they formed a substantial percentage of the entity’s customer base.
She said a loss of E0.79 million was resultantly incurred against a loss of E0.88 million in the last quarter while the total expenditure increased to E5.49 million from E4.59 million realised in the last quarter.
ENCOURAGED
Mkhaliphi acknowledged that the fire incident reduced the hotel’s capacity by about 25 per cent. However, the director said there was an insurance claim that was still being processed.
She encouraged the Board to finalise the franchising deal as soon as the threat posed by COVID-19 pandemic had subsided.
The PEU director said it was important to develop future plans for the sustainability of the hotel.