THE tourism industry has
welcomed KwaZulu Natal’s
temporary shelving of plans
to introduce a controversial
10% tourism levy. The province
announced last year that it would
collect a hospitality levy to create
a ‘war chest’ for the province to
attract major events (see TNW
October 22).
MEC for Economic Development
and Tourism, Mike Mabuyakhulu,
announced during his Budget
Policy speech last month that
the levy would not be
implemented this financial year
and that the alternative date
would be announced after a
consultation process with
industry stakeholders had been
finalised.
Said Mike: “A consultative
process with various stakeholders
on the tourism levy took place
between September and
November and we are currently
considering recommendations
received from stakeholders.
These recommendations, made
by a multi-disciplinary consultative
team that constituted industry
players, are still to be refined
further.”
Donovan Muirhead, chairman
of the National Accommodation
Association of South Africa,
said: “This is welcome news,
considering the impact we are
already feeling from the increased
cost base and decline in forward
reservation numbers due to the
impending visa regulations.”
Donovan said tourism in
KZN had seen many positive
developments, which was the
reason it was important to create
an environment that encouraged
tourism growth, not stagnate it
with legislation that – although
well intended – would have
disastrous consequences.
“I’m glad sanity has prevailed
with KZN,” said David Frost,
ceo of SATSA. He added that
the focus now needed to shift
to getting SA Tourism and TKZN
to work more coherently with
the trade to drive geographical
spread, which would obviate the
desire for marginal provinces to
resort to desperate measures,
such as the 10% levy.
