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IOL News
5 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. 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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
08-05-2025
- Business
- IOL News
Sibaya Coastal Precinct: A R23 billion development supported by eThekwini's road upgrades
An aerial view of the Sibaya Precinct, north of Durban. The eThekwini municipality is expected to contribute R7,8 million towards a road infrastructure upgrade in Umdloti that will unlock Sibaya coastal precinct housing development north of Durban. The municipality intends to upgrade the M27 and M4 slip lanes leading to Jabu Ngcobo Drive. The municipality's Economic Development and Planning Committee (ECOD) is estimating that they will receive R3,8 billion in property rates during the 8-year roll-out period of the housing development. In a report before the eThekwini Executive Committee(Exco) the recovery of the funds is expected to come from the KwaZulu-Natal Department of Transport (KZN DoT). The Sibaya Coastal Precinct is conceptualised as a living, vibrant community that will contain offices, shops, restaurants, educational institutions, recreational opportunities.
