Oudtshoorn municipality unveils strategy to improve finances at hard-hit Cango Caves
THE Oudtshoorn council has endorsed a turnaround strategy for the iconic Cango Caves, hit hard by the Covid19 pandemic and currently operating at a loss.
In a statement, the municipality said at a special council meeting it was resolved to develop a strategy for the Cango Caves – which are battling to stay afloat, and experiencing very low income levels and rising fixed operating costs.
“The objective of this strategy is to focus on operational matters and putting measures in place to turn the financial position around, in order to break even or achieve minimal profit,” said mayor Chris Macpherson.
“We intend to reduce or minimise operational costs and reduce salary costs, as well as overtime. We are also looking at reviewing the Cango Caves’ current operational module and exploring the possibility of establishing a municipal entity versus a department within the municipality,” said Macpherson.
The caves also require urgent upgrades of current facilities, and capital funding is required. “The council has proposed that alternative sources be explored to fund the upgrade of these facilities,” Macpherson said.
The curio shop and restaurant are still closed due to the pandemic and limited tourist numbers, and the council is embarking on negotiations with service providers to introduce additional services to make the sites more attractive to visitors.
The council agreed to review the current tariff structure, to make provision for different categories of tourists visiting the caves. “The possibility of reducing the current rate must be explored to allow more feet into the Cango Caves,” the municipality said.
The marketing of specials and packages for individuals, families and groups would be considered. Schools were seen as a vital feeder of future clients at the caves. “The Cango Caves, with their unique features, create the opportunity to be utilised as a venue for special events such as concerts, art (exhibits), as well as matric balls.
“Cognisance must be taken of the conservation impact of these events, and systems must be put in place to monitor the impact, and approve events with no or minimal impact,” the municipality said.
The council resolved that the board of trustees, with municipal management, should use the strategy to unpack actions – with time frames for their implementation.