Sunday World (South Africa)

Hotel industry unites in rate fight

- By Kabelo Khumalo

The hospitalit­y industry is singing from the same hymn book, calling on national government and municipali­ties to slash municipal rates to arrest the jobs bloodbath in the sector.

Rosemary Anderson, national chairperso­n of the Federated Hospitalit­y Associatio­n of Southern Africa, said the high municipal rates are suffocatin­g a sector battling to recover from the impact of Covid-19.

“Municipal rates are now an unaffordab­le expense for hospitalit­y businesses which are still battling the fall-out of Covid-19 regulation­s and travel bans. If government is serious about trying to stop job losses, one way that further job shedding could be prevented and the hospitalit­y sector helped to get back on our feet, would be the reduction of rates in the short to medium term,” said Anderson.

The sentiment of the lobby group was shared by Marc Wachsberge­r, MD of The Capital Hotels and Apartments.

Wachsberge­r said South Africa’s hotel sector is never going to recover and create the jobs the country so desperatel­y needs if municipali­ties continue to lump them in the same category as commercial property and heavy industry. “Charging hotels similar utilities costs to those levied on residentia­l properties may well see those hotels paying the highest rate on the sliding scale for water and electricit­y costs – but this would still mean that hotels would pay less than half of what they do under their current classifica­tion as commercial properties,” he said. “Furthermor­e, the country’s thousands of Airbnb properties and other types of accommodat­ion in residentia­l areas benefit from residentia­l rates and utilities prices, despite not having the potential to create hundreds of jobs that hotels do,” Wachsberge­r said.

 ?? ?? Rosemary Anderson
Rosemary Anderson

Newspapers in English

Newspapers from South Africa