Fedhasa Cape Chairman Dirk Elzinga claims that more than 70% of hotels in Cape Town are doing well despite an overcapacity of rooms and a recession-linked decline in tourism numbers.
He told the organsiation’s AGM in Cape Town on June 14 that he remained confident tourism would bounce back following excellent exposure during the 2010 FIFA World Cup, when 878 000 room nights were filled and 95% of guests promised to return. “Yes, two hotels recently closed their doors but we also have colleagues who are running at high occupancies. This is a positive indication for the future.” His comments contrast those made recently by Protea Hospitality Group CEO, Arthur Gillis, who said many hotels had over-extended themselves ahead of the World Cup and were now struggling to survive in the current slump.
Elzinga said Cape Town’s image was suffering because it was perceived to be too expensive, yet people often only looked at extreme examples . In reality, there was a wide range of 230 accommodation options in Cape Town. “There are several excellent guest houses, for example, where you can stay this weekend for less than R300 per room per night and for R475 per night you can even stay in a four-star hotel! It is absolute nonsense that that is too expensive!”
Elzinga said Cape Town was not capitalising enough on the success of the World Cup. It was not doing enough to target emerging markets from China and India, nor was it doing enough to fill 7 000 airline seats week from the Middle East. He particularly criticised the Department of Home Affairs for obstructing tourism by taking “weeks and weeks” to process visas. “Government must speak with one voice.” He suggested that visas be obtained on entry, as is the case in many other countries. Fedhasa Cape would be tackling the visa issue this year, he added.
Another focus would be encouraging more youths to enter the hospitality industry. He welcomed government’s announced new grant-funding system, saying it would particularly assist small accommodation providers to create more jobs. However, Government departments again needed to align their efforts to eliminate red tape, he warned. Elzinga also welcomed as “long overdue” the creation later this year of a National Convention Bureau.
