Fedhasa Cape has lost at least 64 members since last year due to tough economic conditions, says Executive Officer, Rema Wiese. 
Speaking at the association’s AGM in Cape Town, she blamed the membership drain on businesses closing down or changing ownership (particularly in the small accommodation and youth sectors); and allied businesses (suppliers) closing down their hospitality divisions. 
Wiese said the biggest loss was in the allied businesses (suppliers) and small accommodation segments with 19 and 15 establishments respectively having left the association.  The number of suppliers dropped from 163 in 2011/12 to 144 in 2012/13; while the number of small accommodation establishments shrunk from 114 to 99 during the same period. Eight hotels also left, with membership in this segment declining from 172 to 164 year-on-year. Fedhasa Cape’s youth segment also lost 13 members, with numbers dropping from 84 to 71 during the same time.  Total membership count dropped from 622 to 558.
Meanwhile, Fedhasa Cape increased its membership fees by an average five and six percent respectively during the past two years, to anything from R995 to R5 720 annually depending on the size of the accommodation establishment. Wiese said this followed no increases in 2009/10 when the three Fedhasa regions in the country standardized their fees.  
Faced with dwindling membership numbers, Fedhasa Cape chairperson, Michele de Witt, called on the Western Cape hospitality industry to become more actively involved in their association. “I believe we need to recognise that we will only be effective if we stand together and interact more meaningfully,” she told the AGM. 
“It’s not easy to run a sustainable hospitality business today because of increasing competition, uncertain levels of demand, price wars and increasing input costs such as energy and labour,” she said. “Destination Cape also poses its challenges - such as travel visas, (limited) air access and the possible implications of the proposed e-tolls - and it is certain that these challenges will affect the hospitality industry. In the past, Fedhasa has been able to successfully influence Government and I believe we need to recognise that we need to stand together,” she said.
Wiese said Fedhasa Cape was delivering value to its members by amongst other things fighting a 600% Western Cape liquor license fee increase; assisting small accommodation establishments with municipal rates and taxes issues; providing debt counseling; consulting on plans for a new sectorial minimum wage,  on labour issues, revised BBEE codes and smoking legislation; providing legislative advice, free online industry statistics and improved communication through newsletters and a revamped website.