The 10% hospitality levy proposed in KwaZulu Natal is already impacting on local tourism to the region and its ability to attract events at a time when domestic travellers are already feeling the pinch.
Asata has warned it will consider boycotting KwaZulu Natal for the association’s next annual convention if KZN’s MEC for Economic Development, Tourism and Environmental Affairs, Michael Mabuyakhulu, pushes ahead with the provincial legislature. The MEC wants to collect the levy from April 2015 to fund a ‘war chest to attract major events to the province’.
Otto de Vries, CEO of Asata, says he has received a competitive and attractive proposal to hold the organisation’s next annual conference in Durban. However, he says Asata can’t be seen to be supporting the province if it pursues a tourism levy that is sure to put significant pressure on the tourism industry.
“Asata is gravely concerned about the proposed new levy. Our industry is under severe pressure and is already burdened with the collection of several levies, surcharges and taxes. We urge the KZN government to review their decision. At the very least, commission a report to assess the potential loss of revenue against the income the new levy is expected to raise.”
Local industry players are hopeful that the committee, which Mabuyakhulu set up earlier this year to discuss the ‘nuts and bolts’ of the levy, will be able to present some much-needed solutions and recommendation.
Donovan Muirhead, Chairman of the National Accommodation Association SA (Naa-Sa), which is part of the committee, says the committee was scheduled to meet to discuss the department’s vision for this fund and to work on how best to achieve the desired result that would mitigate the negative unintended resultants from the establishment of such a fund.
