“The tourism industry has been hard hit by the Covid-19 pandemic, including guest houses and bed and breakfast establishments who are finding it difficult to trade. Most are on the verge of closure, threatening the livelihoods of the owners and the workers,” said Pilane.
He mentioned that many of these accommodations have seen a 95 per cent drop in occupancy since the introduction of the lockdown in March.
“The increasing number of Airbnb establishments offering similar types of accommodation, and yet not being charged commercial rates, further squeezes guest houses out of business.
Pilane said commercial rates are three times higher than residential rates.
“Despite these matters being raised with local municipalities, little or no intervention has been made.”
According to Pilane, the commercial rates that continue to be charged put a strain on the ability of these establishments to continue to operate and preserve much-needed jobs in the country.
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“It should be noted that the effects of Covid-19 began earlier than March 26, leading to many of the establishments struggling to pay their rates, in turn resulting in accrual of services debt and municipalities switching off their services.”
With this in mind, KLCBT urges local municipalities to consider the following as relief measures:
• Temporary reclassification of the property rating category from commercial to residential, at least until normal travel patterns resume post-Covid-19.
• Payment arrangements to allow establishments to operate and apply for payment holidays without being charged interest fees.
On a previous occasion, there was a request to delay payments, but this was denied.
“It is evident that the tourism sector continues to be on the receiving end of lockdown restrictions, and that it is prudent for every stakeholder to come to the relief of the sector, including, and particularly, local municipalities.
“Failure to assist the tourism sector will further lead to its total destruction and massive job losses.”
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Pat Ngomane, the MEC of Dedat, acknowledged having received the letter.
He is currently processing it through with Cogta, given that it is the relevant department that oversees the work of municipalities, as mandated by Chapters 3 and 7 of the country’s Constitution.
“Once a response is received from Cogta, it will be communicated with the party concerned,” said the MEC’s office.
