FEDHASA says proposed Durban tourism tax could bad for business
The Federated Hospitality Association of South Africa (FEDHASA) believes a proposed tourism levy in Durban could drive tourists away and force many businesses to close.
eThekwini’s Economic Development and Planning Committee has recommended that local agency, Durban Tourism, do a feasibility study on introducing the tax.
The City says the proposed measure would fund efforts to market Durban as a top tourism destination.
"If the greater tourism economy, not only in Durban but in the entire province, was doing a lot better, it's something that we could actually maybe understand and maybe possibly support,” says Fedhasa’s Brett Tungay.
"But at the moment, tourism in this province and in Durban is still under pressure. It still hasn't recovered to any of the pre-COVID levels and any further costs like this just makes business that much more difficult and [would] probably lead to business closures."
Tungay says that while such a tax can be fair, alternative ways to fund tourism in eThekwini must be explored.
" At the moment, there has to be assistance from both sides and that's why we have Durban Tourism and the KwaZulu-Natal Film and Tourism Board. Those entities are set up to promote the region and the city. They've got a budget allocated and that's where the money needs to come out of."
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