The tourism industry has welcomed the fact that KwaZulu Natal has temporarily shelved plans to introduce a controversial 10% tourism levy. The province announced in August last year it would collect a hospitality levy to create a ‘war chest’ for the province to attract major events.
MEC for Economic Development and Tourism, Mike Mabuyakhulu, announced during his Budget Policy speech earlier this month that the levy would not be implemented this financial year and that the alternative date would be announced after a consultation process with industry stakeholders was finalised.
Said Mabuyakhulu: “A consultative process with various stakeholders on the tourism levy took place between September and November and we are currently considering recommendations received from stakeholders. These recommendations made by a multi-disciplinary consultative team that constituted industry players are still to be refined further.”
Donovan Muirhead, Chairman of the National Accommodation Association of South Africa, said: “This is welcoming news, considering the impact we are already feeling from the increased cost base and decline in forward reservation numbers due to the impending visa regulations.”
Muirhead added that tourism in KZN had seen many positives developments, which is why it was important to create an environment that encouraged tourism growth, not stagnate it with legislation that – although well intended – would have disastrous consequences.
“I’m glad sanity has prevailed with KZN,” says David Frost, CEO SATSA. He adds the focus now needs to shift on getting SA Tourism and TKZN to work more coherently with the trade to drive geographical spread, which will obviate the desire for marginal provinces to resort to desperate measures, such as the 10% levy.
