Minister must intervene to save tourism jobs in KZN

I will write to the Minister of Tourism, Derek Hannekom, requesting an intervention into the proposed increase of tourism levies in the province of KwaZulu-Natal. I will also raise this issue in the next Portfolio Committee on Tourism.

This follows reports that KwaZulu-Natal intends on increasing its tourism levies from 1% to 10% from the 1st of April 2015, in an attempt to create "a war chest to attract major events to the province". 

While the DA supports the implementation of tourism levies in the country, an initiative which is aimed at pooling funds to be used to further develop the tourism industry in South Africa, we believe that levies must be uniform and standardised across all provinces in order not to dissuade visitors from visiting certain more costly regions. At present, a 10% tourism levy is simply too expensive and threatens tourism in the KwaZulu-Natal province which could have a serious effect on existing and prospective jobs within the tourism industry. 

Tourism Levy South Africa (TOMSA), a voluntary, private sector-led initiative collects a 1% levy or fixed rand amount from all confirmed accommodation, car rental or tour bookings, to contribute towards South African Tourism's (SAT) international profiling and marketing of destination South Africa. In the latest Annual General Meeting (AGM) report for the 2013 financial year, the Chairperson of TOMSA, Franco Jordaan, announced that the levy contributed R104 million to SAT.

This funding must be invested back into South Africa's tourism industry in order to sustain existing infrastructure, and develop new facilities in gap markets. The province of KwaZulu-Natal must use the funds from the existing system to develop tourism infrastructure, instead of increasing tourism levies and dissuading visitors by making the province more expensive.

Tourism levies must be effectively channelled into the country's tourism industry. These funds must be used to:

Reward successful tourism entities in the country;

Incentivise entrepreneurship in the tourism industry which creates jobs and contributes to attracting visitors to South Africa;

Develop tourism incentives in poor areas; and

Reform local municipalities upon which all local and community-based tourism in South Africa is based, and which enables communities to benefit from tourism. 

I will also raise the abovementioned points at the next sitting of the Portfolio Committee on Tourism where the National Tourism Strategic Plan will be discussed.

Government must also conduct a Regulatory Impact Assessment (RIA) before introducing levy increases in order to assess the effect they will have on jobs in the tourism industry.

Tourism is a key job-creating industry in the country. This crucial sector of our economy must not be compromised by the proposal of harsh levy increases which affect the country's desirability as a tourism destination.

The DA will continue to promote tourism as an important contributor to South Africa's economic growth and a vital job-creating industry.

Statement issued by James Vos MP, DA Shadow Minister of Tourism, August 19 2014

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