Tourism stakeholders reject eThekwini Municipality's proposed levy
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
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
10 hours ago
- 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
The Citizen
a day ago
- The Citizen
Tourism surge: R4.2 billion spent on SA hotels in second quarter of 2025
Figures show more is being spent at South Africa's hotels and guesthouses, but industry experts say more innovation is needed. South Africa's tourism industry is maintaining its post-Covid comeback with record revenue in the accommodation sector. Accommodation income generated in the second quarter of 2025 increased by 10.5% from the same period last year. Statistics South Africa (Stats SA) released the figures this week in its quarterly report on the tourist accommodation sector. Recovery sustained The numbers are compiled from a monthly survey of hotels, guesthouses and other commercial accommodation owners of tax-registered private and public enterprises Stats SA's report shows the healthy recovery of an industry that was decimated by the global health panic of 2020. Seasonally adjusted income from accommodation at current prices first reached pre-covid levels in Spring 2023 and has exceeded that level for every quarter since July 2024. 'Seasonally adjusted income from accommodation increased by 3.8% month-on-month in May 2025, following an increase of 3.1% month-on-month in April 2025,' stated Stats SA. However, seasonally adjusted occupancy rates have yet to breach the 40% mark, having sat at roughly 45% in January 2020. In the last quarter, hotels earned R4.2 billion, while caravan parks and guesthouses and farms earned R186 million and R337 million, respectively. 'Other' forms of accommodation accounted for R2.7 billion, with the R7.5 billion total excluding food and beverage sales. Industry insights The accommodation industry generated R35.3 billion last year, with the industry sitting on R14.3 billion for the first five months of 2025. Southern Africa Tourism Service Association CEO David Frost said that the country's natural attractions provided a solid foundation from which to build, but required the industry to continually adapt. 'We cannot afford to be complacent. To stay globally competitive, we must continue to diversify and meet evolving traveller expectations,' said Frost. 'True growth lies in how we innovate around these assets. We need to move beyond what we've always done and develop experiences that appeal to a broader range of global travellers.' Frost highlighted areas outside the 'Cape Town-Kruger' corridor as needing extra representation, but explained the 2024/25 cruise season generated R1.32 billion. National Chairperson of the Federated Hospitality Association of South Africa, Rosemary Anderson, agreed with Frost's sentiments on evolving the industry. 'That's now changing, thanks to Tourism Minister Patricia de Lille, who has introduced a new model where government and industry work together in dedicated tourism workstreams. 'For the first time, ideas are not only being developed jointly, but action plans are being put in place. This shift has the potential to be a game-changer for tourism in South Africa,' Anderson concluded. NOW READ: Could tourism be the answer to SA youth unemployment?
The Citizen
2 days ago
- The Citizen
Gerrie Fourie's tearful farewell to Capitec family
At an emotional AGM, the bank's long-serving CEO and founding member stepped down after 25 years. Fourie thanked his executive team and the Capitec board for their trust and support at his final AGM as CEO. Picture: via Capitec's website On Friday, 18 July, Capitec's now-retired CEO Gerrie Fourie stepped onto the stage at the bank's annual general meeting (AGM) in Stellenbosch for the final time, marking the end of a 25-year journey with the company he helped build from the ground up. From the outset, Capitec chair Santie Botha made it clear that this would not be a routine AGM. Botha's opening address set the tone for an emotionally significant farewell to one of the bank's most influential figures. She said Fourie was hand-picked by Capitec co-founder Michiel le Roux in 2000 to be part of the executive team that would build a new kind of bank. 'Over the past six years, I've had the privilege of working closely with Gerrie and observing his modus operandi first-hand,' Botha added. 'He is a phenomenal leader and CEO. His approach to business is unique and he sets a very specific tone from the top.' ALSO READ: Is South Africa's unemployment rate really only 10%? Fourie built what Botha called an 'A-team' of leaders, with zero tolerance for non-performance. He demanded a deep understanding of the business and was known for challenging assumptions, asking difficult questions, and drilling into the detail when needed, she added. He recognised when the numbers didn't add up and always pushed for clarity and accountability. Although he was guided by vision and long-term strategy, Fourie believed nothing beats decisiveness and execution delivered at speed. 'Thank you, Gerrie, for dreaming big and showing South Africa what is possible with dedication and focus. Over to you,' said a visibly emotional Botha. ALSO READ: Government meets with Capitec CEO about unemployment statistics Reflection Fourie's presentation began in his characteristic relaxed and engaging manner, as he shared the latest performance statistics and milestones achieved under his leadership. But the tone soon shifted as he began to reflect on the people who made the journey meaningful. 'To the Capitec team, it was a tremendous 25 years working with you,' said Fourie. He recounted how, during a systems outage in August 2022, staff worked around the clock to restore services. Further, 'Our consultants don't close a branch at 5pm. They wait until the last client leaves. That is our family.' ALSO READ: Capitec's outgoing boss bemoans SA's high real interest rates Gratitude and pride Fourie thanked his executive team and the Capitec board for their trust and support. 'You know, I actually thought this morning – everything I asked for, I got. And I know it sounds windgat [like a braggart],' he said, laughing. He highlighted the decision to invest in 2020, during the uncertainty of the Covid-19 pandemic, when other companies were pulling back. 'It was scary. But over three years, we invested an additional R6 billion – and that is how we created what Capitec is today. 'The board's boldness and decisiveness helped us get there.' Fourie then turned to his family. 'This is the difficult part,' he said, his voice wavering. He thanked his wife, Reinie, for supporting his career and creating the space he needed to focus entirely on Capitec. 'From my side … thank you. And to my dad – my biggest supporter.' He concluded with a tribute to his successor, Graham Lee. 'Graham started in 2002 as my business analyst. He couldn't speak a word of Afrikaans,' Fourie joked. But, he said, Lee brought all the right qualities to lead Capitec into the future – from technological insight and data fluency to execution ability and, 'most importantly, a passion for people'. 'It's a privilege to hand the baton to you,' he said tearfully as the audience rose in a standing ovation. Capitec share price This article was republished from Moneyweb. Read the original here.
