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IOL News
3 days ago
- Business
- IOL News
Tourism stakeholders reject eThekwini Municipality's proposed levy
A helicopter view of the Durban beachfront Image: File The eThekwini Municipality's recent proposal to introduce a tourism levy has sparked significant opposition from local tourism bodies, highlighting the challenges and complexities facing Durban's tourism sector. The city's Economic Development and Planning Committee recently recommended that Durban Tourism initiate a comprehensive feasibility study on the potential introduction of a tourism levy in eThekwini. According to the City, the purpose of the study is to explore the practicality, structure, and potential impact of such a levy before any final decisions are made. "The proposed levy aims to establish a dedicated, ring-fenced funding mechanism to support the marketing of Durban as a tourism destination of choice both locally and internationally, and to drive tourism-related innovations and initiatives. "The ultimate goal is to reduce reliance on municipal funding and improve long-term financial sustainability within the tourism sector," read a statement issued by the municipality. Durban Tourism has been tasked to engage with a wide range of stakeholders, including the national Department of Tourism, South African Tourism, local tourism boards, industry associations, community organisations and the private sector. Following this it is expected to present its findings and recommendations to the committee. Brett Tungay, chairperson of the Federated Hospitality Association of Southern Africa (FEDHASA) for the east coast, said they were opposed to the idea. He said most hotels were already paying a 1% Tourism Marketing SA (TOMSA) levy, for travel services in South Africa. "We will definitely not allow this to happen. The City has not engaged with the private sector in a meaningful discord yet regarding this. KwaZulu-Natal as a tourism destination is yet to recover to post Covid levels. We are still 20% down on pre-Covid levels. The foreign numbers into the province is still about 80% down. It is not as if we are in a flourishing tourism environment that has excess profit that we can throw at the city," he said. Tungay said any new levy would have to be borne by the properties. "It will affect the bottom line of all the hotels and resorts in Durban. In an environment where we are trying to grow and trying to encourage employment this is not what we need. "I would rather see the City improve on its water billing and rates collections," said Tungay. He said cities around the world that charge a tourism levy have functioning municipalities. "The City needs to look at how they can tighten the belt first and get everything running properly. They must realise that tourism marketing benefits the entire city," he said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Tshifhiwa Tshivhengwa, CEO of the Tourism Business Council, also cited the TOMSA levy, adding that imposing another levy would be unfair on the sector. "There is no other sector that has a levy, so it will be unfair to impose a levy on tourism when you don't impose a levy on anybody else who operates in any different way within the municipality. "We all pay rates and taxes and other dues, why introduce something that is targeted to one sector and not targeted to others? Why impose something to say it's the basis for destination marketing?" questioned Tshivhengwa. He said there were many municipalities with functioning tourism bodies. "What the municipality needs to do is fund destination marketing and make sure they realise the benefits. If they fund it, the return on investment is far greater. "There are many other models out there that are very successful. Cape Town Tourism has a different model where it's not necessarily funded directly through the municipality," he said. Tshivhengwa said the municipality needed to fix its infrastructure to attract tourists. "Fix the beaches and make sure there is no sewage going into the beaches and ensure it's a safe place. There will then be more economic activity and those in the tourism sector will derive benefits and be able to create employment. But to say you are going to impose a statutory levy and not do it for any other industry, is unfair. "Durban has not been getting the lion's share of tourists and the problem is infrastructure. You can go and market all you want, but if the beaches and water is not clean and we don't deal with issues of safety and security, no one is going to go there," he said. SUNDAY TRIBUNE
IOL News
08-06-2025
- Business
- IOL News
Economic impact of the Comrades Marathon on South Africa
Tourism and hospitality industry and economists believe that the 98th edition of the Comrades Marathon on Sunday will provide an economic boost to the KZN and South African economies. Image: Comrades Marathon/Facebook Tourism and hospitality industry and economists believe that the 98th edition of the Comrades Marathon on Sunday will provide an economic boost to the KZN and South African economies. Brett Tungay, East coast chairperson for the Federated Hospitality Association of Southern Africa (Fedhasa), said that the Comrades marathon has a huge impact on the KZN hospitality and tourism and the KZN economy. 'In Pietermaritzburg, most of the occupancies have been reported as fully booked, which is great news. We all expect a great turnout for Durban with both local and international arrivals. Comrades is not just a KZN event; it really impacts people from across South Africa.' Tungay added this is great news for sports and events tourism. 'This is something that we have been pushing for as events and sports tourism gives a huge boost for the tourism and hospitality sector. We recently had a major event with the Nedbank Cup final in May between Kaizer Chiefs and Orlando Pirates. It was a huge event for KZN; restaurants, retailers, and accommodation were fully booked. So the Comrades Marathon is also going to be huge, and we are expecting to be very busy. We do need international arrivals as numbers have been down since the Covid 19 pandemic and events like this boost international arrivals.' Rosemary Anderson, National Chairperson Fedhasa, said that the Comrades Marathon is one of South Africa's most iconic sporting events and plays a vital role in driving tourism. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ 'Each year, it attracts thousands of runners, supporters, and families from around the country and the world. This influx of visitors boosts demand for hotels, guesthouses, restaurants, tour services, and transport – creating a ripple effect across the local and regional economy. It's not just about race day – it's about the extended stays, pre- and post-race travel, post-race dining and celebrations, and the vibrant atmosphere that energises the entire hospitality sector. Anderson added that the Comrades Marathon is a brilliant catalyst for the tourism and hospitality industry. 'It fills accommodations, packs out restaurants, and showcases South Africa's warm hospitality to both locals and international guests. Beyond the economic boost, it gives destinations like Durban and Pietermaritzburg a valuable platform to market themselves globally. Visitors often extend their stay to explore other attractions in KwaZulu-Natal and beyond, amplifying the tourism spend. Importantly, it also creates temporary and permanent job opportunities across tourism-related services – from event logistics to food vendors, tour guides, and more.' Anderson said that large-scale events like the Comrades Marathon, the Cape Epic, or international rugby and cricket sporting events are powerful tourism drivers. 'They not only bring in international visitors but also elevate South Africa's global profile as a dynamic, welcoming, and world-class destination. The more successful events we host, the more we can stimulate local economies, create jobs, and diversify our tourism offerings. They give people a reason to travel here – and often, once they experience the country, they return for leisure holidays, business, or further sporting events. Major events are a smart, sustainable way to grow tourism and showcase South Africa's unique spirit.' Umhlanga Tourism chairperson Jeannie Sarno said that the office is looking forward to welcoming the annual Comrades Marathon and the influx of visitors it brings to the area. "It's not just runners that attend the Comrades; they travel with friends, supporters, coaches, and even family. The majority of our establishments are fully booked, and this is a great relief to the tourism-related businesses who have had low bookings for March and April this year." Sarno added she encourages the community to continue to be welcoming to our visitors and helpful to assist when it comes to recommendations of restaurants and tourism attractions for the days leading to the run and the days after. 'Many families allow the runners to 'do their thing' on the pre- and post-race, and the families enjoy the sites and attractions in and around Umhlanga.' Waldo Krugell, an economics professor at the North-West University (NWU) and a previous Comrades Marathon runner, said that he always gets excited during Comrades weekend. 'There is a clear positive economic impact. Previous research indicates that it contributes significantly to the provincial economy. It is not only the athletes, but the supporters that travel along and frequently stay longer as well. Comrades has a larger impact on the local economy than many similar sport events, and this is attributed to the specialised nature of the event.' BUSINESS REPORT Visit:
