Durban Municipality Faces Pushback From Hospitality Sector Over Proposed Tourism Levy

The hospitality sector has urged Durban to focus on fixing fundamental services in order to bolster its tourism sector rather than introducing a tourism levy proposed by the city’s municipality.

On July 11, eThekwini Municipality’s Economic Development and Planning Committee advised the city’s destination marketing organisation – Durban Tourism – to embark on a feasibility study on the introduction of a new tourism levy.

The proposed levy will be a ring-fenced funding mechanism designed 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 committee said in a statement. The ultimate goal is to “reduce reliance on municipal funding and improve long-term financial sustainability”.

FEDHASA National Chairperson Rosemary Anderson told Tourism Update that the imposition of the levy is “not only inappropriate but counterproductive”.

“It is not the tourism industry that has underdelivered – hotels, restaurants and tourism businesses continue to offer excellent value and experiences. The real issue lies with the municipality’s inability to deliver the fundamental services expected by any traveller: unpolluted beaches, clean water, safe roads, refuse removal, safe environment and reliable infrastructure,” said Anderson.

Failing infrastructure – compounded by increased incidents of flooding – has triggered the regular closure of Durban’s beaches over the past several years due to high E. coli levels from sewage in rivers flowing into the Indian Ocean.

The municipality is currently embroiled in a civil court battle with the Democratic Alliance and ActionSA over what the political parties describe as “years of failure and neglect in upgrading infrastructure to cope with sewage flows”.

‘Overwhelmingly negative’ response

Anderson said the tourism industry’s reaction will be “overwhelmingly negative” considering that businesses are already operating under immense pressure.

“Tourism establishments are being asked to keep their doors open under increasingly impossible conditions. An additional charge, such as a tourism levy, would make it even harder for these businesses to compete – both nationally and internationally.”

She pointed out that most hotels are already paying the national 1% TOMSA levy, administered by the Tourism Business Council of South Africa, which channels funding into South Africa’s destination marketing.

Anderson said the stance adopted by Durban is opposite to what is needed to revitalise tourism. “In fact, rather than introducing a levy, the municipality should be exploring rates reductions or relief measures for tourism businesses. This is not the time to add cost barriers. It’s the time to offer incentives to attract tourists back and support mechanisms to help tourism operators remain viable.”

For the feasibility study, Durban Tourism is expected to engage with the national Department of Tourism, SA Tourism, local tourism boards, industry associations, community organisations and the private sector.

“Following the consultation process and completion of the feasibility study, Durban Tourism is expected to present its findings and recommendations to the committee. Only then will a final determination on the implementation of the levy be made,” the committee stated.