#LockdownSA: Durban set to lose billions as tourism dries up

THE Durban hospitality industry will lose an estimated R4 billion in revenue due to the national lockdown.

This is one of many economic impacts that were announced by Durban Mayor, Mxolisi Kaunda as the city counts the losses from the Coronavirus pandemic.

As a coastal city, with a heavy reliance on tourism, the lockdown has meant a significant decrease in visitor numbers to Durban and subsequently a loss in revenue.

When compared to last year’s number, the sharp decline in visitor numbers resulted in losses of R300 million in direct spend; R600 million in contribution to the GDP and R39 million in taxes and 1 400 jobs.

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According to the city’s research, approximately 320 000 jobs are at risk as the lockdown continues.

Big tourist attractions like the Durban International Convention Centre and Ushaka Marine sit idle with a slew of cancelled events and a combined revenue loss of R114 million.

In an effort to soften the blow on businesses, Kaunda unveiled the city’s Economic Relief Plan that would provide incentives and breaks for distressed companies.

“Our plan recognises the need to ensure that the Municipality remains financially viable, whilst investing in the economy, which creates jobs and prosperity. Working together with our partners, we will monitor the financial health of the municipality and our customers as the pandemic unfolds, and respond appropriately,” he said.

The city will be giving a six-month rental holiday to informal businesses, allowing Bed and Breakfasts to pay residential rates (instead of commercial) and waive developmental fees.

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A R40 million deposit reallocated from various departments will be donated to the city’s Covid19 Growth Fund to help small businesses. The fund will be run in addition to the

national government’s SMME funding and Debt Relief fund.

Nicole Graham, eThekwini Democratic Alliance caucus leader, said the proposals by the mayor were positive but did not address individual needs of eThekwini residents.

The DA proposed the city institute short-term rates holiday, a doubled allocation of free water and electricity and no interest to be charged on arrears.

“324 000 jobs are on the line and hundreds of thousands of Durbanites are in deep financial trouble due to the lockdown and the Covid-19 pandemic,” said Graham. “Changing rating codes for B&Bs and re-working the tourism strategy is akin to re-arranging the deck chairs on the Titanic whilst the ship sinks.”

Caxton Local Media Covid-19 reporting

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