Editor's noteNews
Tourism Dundee reacts to MEC’s 10% levy announcement
... But stakeholders in the area are not impressed:
Tourism Dundee reacts to the MEC’s proposal to enforce a 10% tourism levy on all accommodation establishments in the Province from April 2015 to create a ‘war chest for tourism’.
But stakeholders in the area are not impressed:
Here’s what Norman Parkinson, chairman of Tourism Dundee, wrote to the MEC’s office”
Good morning, I am the Chairperson of Dundee Tourism, Dundee KZN, which covers The Battlefield region of KZN. Unfortunately, as you have already been advised, we are unable to have a representative attend the briefing owing to the short notice given, other commitments (The Getaway Show in Johannesburg, The Battlefields Route AGM etc.) & the distance away, necessitating anyone attending from Dundee having to be away for 2 full days. This is a great pity as this proposed levy is causing considerable concern amongst our members.
We do however have some questions that we would like answered: –
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Why was this ‘breakfast briefing’ planned after the proposed tourism levy was announced? Why was it planned at such short notice? If this had been considered properly then such a ‘briefing’ should have been the first step in the process, not a ‘knee jerk’ provoked by the outrage that the announcement has caused.
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Many businesses; supermarkets, petrol filling stations, toll routes, restaurants, car hire companies, airlines etc. benefit from tourism. Why is this levy targeting, primarily, accommodation establishments & tour-guides?
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As S.A. is just recovering from a recession (and in fact some pundits suggest we are about to enter another one!!) we, The Dundee Tourism members, are experiencing a significant ‘lull’ in business, with some establishments having closed & others teetering on the edge of doing so. A situation which I believe is mirrored elsewhere in KZN & S.A. in general. In this environment why is yet another ‘stealth tax’ being proposed now?
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This levy is intended to provide a ‘War Chest’ for tourism matters. What is this ‘War Chest’ for & who will have access to it? Our suspicions are that it will benefit Durban & the immediate surrounding area but not the likes of The Battlefields (including Dundee), Drakensburg etc. This may seem cynical but quite frankly this view is based on experience, not unfounded fears.
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Is it intended that this levy to be paid on all takings, profit before tax, profit after tax etc.?
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How will this levy be collected? If this process requires any degree of voluntary contribution or provision of information from those targeted, then I suggest that you may struggle.
Once again, apologies for us being unable to have a representative attend the breakfast briefing tomorrow. We would however invite Mr. Mabuyakhulu, or his representatives, to come to Dundee to brief us. I can assure them of a warm reception. Our Tourism A.G.M. is on the 3rd September, starting at 6pm, at Ingudlane Lodge, Dundee. This could be an ideal opportunity for Mr. Mabuyakhulu, or his representative to brief us. Please accept this E mail as an invitation for Mr. Mabuyakhulu to attend our A.G.M. If he is unable to do so owing to the short notice, other commitments or any other reason, then we understand & would ask that he send a representative who can brief us and answer our concerns.
Best regards,
Norman Parkinson
Chairperson, Dundee Tourism
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