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IOL News
6 days ago
- Business
- IOL News
Operational overhaul mooted for Durban's uShaka Marine World
UShaka Marine World in Durban is set for a major overhaul, with plans to outsource operations. Image: uShaka Marine World UShaka Marine World in Durban is set to undergo a significant overhaul, with plans to outsource most of its operations. This initiative is part of the eThekwini Municipality's efforts to achieve financial stability for the entity, known officially as the Durban Marine Theme Park (DMTP). The City said in a recent media statement that the executive committee recommended the approval of Business Plan Option 2, which prioritises outsourcing operations and reducing reliance on municipal funding as the strategic model for DMTP. However, the plan still has to be approved by the City's full council. Option 2 has raised concerns among some workers who fear potential job losses due to the strategy outlined in the business plan document. Asked about potential job losses, the City told The Mercury this week that there are no projected retrenchments at this stage. Making uShaka Marine World financially sustainable has been discussed for several years. In October 2019, the council allocated R6 million for a feasibility study aimed at evaluating operational models for the DMTP. This study was delivered in seven phases, culminating in the presentation of two business model options to the municipality. In their media statement after exco approved Option 2, the City said the plan includes the initiation of a procurement process to identify suitable private operators and for the City Manager to oversee the transition in collaboration with the appointed multi-disciplinary committee. It added that the implementation of Business Plan Option 2 will only be implemented in the 2026/27 financial year. A business plan document on Option 2, which The Mercury has seen, proposes to outsource all food and beverage operations, as well as the water park operations, while having the South African Association for Marine Biological Research (SAAMBR) take over all operations pertaining to Sea World. This option also calls for a reduction in the direct DMTP staff complement. 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 Another document about the business plan indicates that the complete outsourcing of operations would transform DMTP into a facilities manager, collecting rent from tenants with limited capital injection. The approval by exco of this plan sparked concerns among workers. One worker stated, 'uShaka is about to initiate the retrenchment of its staff,' referring to the document 'Business Plan Consultant,' which recommended 'reducing and outsourcing staff.' This situation is disheartening for staff who previously went on strike for a month with no gains, only to now face potential retrenchment, the worker said. South African Municipal Workers Union (SAMWU) leader Siyabonga Dladla expressed concerns about the unfolding process. 'We have not been consulted on any process that is about to unfold. This option two they speak of is unknown to us. The municipality is aware that before they proceed with any actions, they need to consult with labour and reach a consensus. We will not tolerate any dictatorship.' DA councillor Welekazi Sibiya said the party had been advocating for the outsourcing of some departments. 'The DA in eThekwini is vindicated by the developments regarding uShaka Marine World. The DA has been advocating for the outsourcing of some departments within the entity to ensure it can be self-sustainable and not entirely reliant on the City's finances for survival. We welcome these developments as they open the door for public/private cooperation and collaboration.' Sibiya confirmed that the report on the business plan had not been approved by the full council at a meeting last week. She said it had been sent back to the Economic Development and Planning committee. Action SA councillor Zwakele Mncwango said the item had been referred back to the committee as councillors felt that they needed more information about the option that was being presented. He stated that they supported the item being referred back, as the approach is misguided. 'The strategy cannot be applied to the entity itself; it should look at an overview whether the environment is conducive enough for tourists to come to Durban. Is it safe? Are the beaches safe? It does not matter how much money is being poured into uShaka as long as the other tourism matters are not addressed; it will not help.' IFP councillor Mdu Nkosi said he was concerned about potential job losses. 'We all know that when a new employer comes in, they tend to bring their own employees, and there is a huge possibility of that happening here.' Nkosi acknowledged that the financial situation of uShaka is not ideal, but he said it could be improved through innovation by the current management. He pointed out that since the facility was established, there have not been any significant new attractions built there. 'There are no new attractions that could draw people from all over the city and the country to want to visit the facility,' he added. In response to questions from The Mercury, the municipality said there were various proposed models and a preferred option was selected. 'This option involves the inclusion of private sector investment into the business of the theme park and its operations. The approval of this option allows for the next phase of this study, which is to test the business case.' 'At this stage of the business case test, there are no projected retrenchments. The management at uShaka Marine World has initiated conversations on the matter with the South African Association for Marine Biological Research (SAAMBR), the South African Municipal Workers Union (SAMWU) as the internal labour partner, as well as with the non-bargaining council employees.' THE MERCURY
The South African
30-06-2025
- Business
- The South African
uShaka Marine World gets R14 million cash lifeline
The eThekwini Municipality has approved a R14 million financial injection for uShaka Marine World, in a bid to keep the iconic Durban theme park operational amid ongoing financial distress. The majority of councillors voted in favour of the funding, which will go to Durban Marine Theme Park (DMTP), the municipal entity that manages uShaka's operations. The park, once a crown jewel of Durban tourism, has been plagued by cash flow constraints linked to its current business model and institutional structure. Officials say that during low trading periods, the park fails to generate enough income to cover mandatory expenses – causing it to rely heavily on peak-season surpluses. Historical debt has further weakened the park's ability to remain solvent throughout the year. Thembo Ntuli, ANC councillor and Chairperson of the Economic Development and Planning Committee, defended the move, calling it a 'strategic investment' rather than a bailout. 'Without this funding, the park may be forced to scale down or suspend operations, putting jobs, tourism revenue, and the city's reputation at risk,' Ntuli said. The funding aims to stabilise uShaka Marine World as a 'going concern', warding off the risk of job losses and a potential decline in domestic and international tourism revenue for the city and province. The DMTP has committed to finalising a turnaround strategy by July 2025, which will outline measures to resolve the theme park's operational inefficiencies and improve long-term sustainability. A new credit agreement is also being explored to help restructure and settle the park's existing debt burden, with a view to enhancing liquidity and operational capacity. uShaka Marine World remains a key tourism anchor for both Durban and KwaZulu-Natal. The facility, which includes a water park, aquarium, and entertainment complex, draws thousands of visitors annually and contributes significantly to local economic activity. Operations at the park are overseen by the South African Association for Marine Biological Research (SAAMBR), a non-profit organisation focused on marine education and conservation, while the municipality continues to fund the park's broader operations. With the approved funding, the city hopes to preserve one of its most recognisable attractions and secure its role as a driver of economic growth, employment, and tourism in the region. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
IOL News
26-06-2025
- Business
- IOL News
Durban's uShaka Marine World receives R14 million cash injection to keep it afloat
uShaka Marine World, the Durban Marine Theme Park (DMTP), is experiencing financial challenges and will receive a R14 million cash injection from the eThekwini Municipality. Image: Picture: Gcina Ndwalane uShaka Marine World is experiencing financial challenges and will receive a R14 million cash injection so that it remains a going concern. The majority of eThekwini councillors approved the payment to the Durban Marine Theme Park (DMTP) which is controlled by the municipality, at a council meeting on Thursday. uShaka Marine World is located along the City's main beachfront and was conceived as part of the redevelopment of the Waterfront in 2003. The objectives of the creation of uShaka Marine was for it to be a strategic tourism facility for the City of Durban as well as the province of KwaZulu-Natal as a whole. uShaka Marine World entered into an indefinite agreement with the South African Association for Marine Biological Research (SAAMBR), a Non-Profit Organisation, in which SAAMBR is responsible for the operations of Sea World. In return and provided for in the Heads of Agreement, the Municipal Entity is responsible for providing funding for their operations, stated a municipal report. As per the addendum to the heads of agreement, this annual amount is a grant to the municipal entity by the eThekwini Municipality. In a council meeting held in 2024, council resolved that the DMTP is operating on or close to a break-even level. According to the municipality the cashflow challenges are attributed to the current business model as well as institutional arrangements. These issues become much more pronounced during the low trading periods of the park wherein the monthly cash generated is less than the cash required to meet the mandatory expenditure for the corresponding period. 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 This meant that the entity has to accumulate sufficient cash during the high peak season to carry it through its off-peak season. This, coupled with historical debt, has had a huge drain on cash resources. Due to very slow cash flow, the entity has not been in a position to pay both the credit agreements as well as the current billing on utilities since October 2024. To address the negative impact of the repayment of the utilities on the entity's cash flow, a new credit agreement is being explored to settle the debt. This will result in the terms of the settlement agreement being re-determined in a manner that is more optimal for the liquidity of the DMTP. The DMTP is working on a turnaround strategy that will be concluded in July 2025 said Thembo Ntuli, ANC councillor and Chairperson of the Economic Development and Planning Committee. Ntuli emphasised that the decision taken to give the utility R14 million is not a 'bail out' but rather a strategic investment. "Without this funding, the park may be forced to scale down or suspend operations putting jobs, tourism revenue and city reputation at risk. Let us remember, uShaka Marine World is more than a theme park. It is a tourism magnet and a source of pride for eThekwini," Ntuli said. Saneli Zuma, ActionSA councillor, was concerned about how much longer the municipality will inject millions into the DMTP theme park while ignoring the real issues that keep tourists away. 'If we are serious about turning things around, the city must first invest in resuscitating its tourism ecosystem—revive the beachfront, ensure clean and safe public spaces, and improve basic infrastructure. Only then will tourists return,' she said. Zuma also suggested that the DMTP must improve on its marketing campaigns and partnerships.
