GRASKOP – The once-prosperous Graskop Resort and Caravan Park will soon be handed over to a new operator, amid upset and doubt from other businesses in the area.
Concerns regarding the process were once again expressed by residents at a town meeting held on December 3. Among the most pressing of these pertained to a petition letter that had been signed by 320 people in October, stating that they agreed that the preferred bidder, Mr Elliot Marobela of Sre and Jre Investments and Trading (Pty) Ltd, was their preferred choice to run the resort.
According to Mr Brendan Trailer, owner of a lodge in town and also the chairman of the local branch of AfriForum, only 20 of the signatures on this petition were solicited in Graskop itself. “The rest are from Sabie and Mashishing,” he said.
In response, Thaleda, the body that is assisting Thaba Chweu Municipality (TCM) with local economic-development programmes and is steering the whole process, denied that it had been involved in directly soliciting any signatures. It was unclear who was behind this petition and what its purpose was.
Last week the Graskop Business and Tourism Forum called on TCM to halt the process and allow the bids, feasibility study, and financial plans to be reviewed. Traille specifically mentioned financial forecasts, projected occupancy levels and a financial plan as information that needed to be made known to the public.
Lowvelder requested the information from Thaleda and the CEO, Ms Sindiswa Mathebula responded. She said it anticipated to achieve break-even in the eighth year of operation. The contract is for 15 years with the option to extend to 20.
Tariffs were modelled on 2012 existing structures with an inflation of six per cent per annum. They were modelled to increase more aggressively during years three to six, at 15 per cent. Simulated occupancy was very low, the highest being 10 per cent in high-season weekends for years six to nine. High-season weeks, low-season weekends and low-season weeks ranged from zero to five per cent.
According to information at Traille’s disposal, Sre and Jre Investments and Trading would pay rent to TCM of R22 700 per month, a 10 per cent of turnover increasing to 50 per cent after five years.
Thaleda did not confirm this, nor when the first payment was due, but Mathebula did respond that the request for proposal (RFP), called for bidders to put forward a fixed fee and a percentage of turnover, with the higher of the two being paid.
“The preferred bidder offered a fixed fee of R21 000 per month or 10 per cent of the gross revenue per annum, whichever is the higher. We are still awaiting for council resolution regarding the contract,” responded Mathebula.
Outstanding answers from Thaleda include:
• Which rates, specifically, were used for calculations? (for example, the actual rates that will be charged?) No business owners in Graskop were approached re this. Is this correct? Can you confirm which ones were consulted?
• Can you confirm that the preferred bidder offered 10 per cent of turnover to TCM for the first five years, and 50 per cent after five years? Is this considered feasible?
• How much of the capital will be used for refurbishment?
• Were all bidders given the opportunity to negotiate on the terms?
• Have any employment contracts been signed for staff to start work at the resort?
A petition by business owners and residents has been launched, with the purpose to object against the awarding of the tender to Marobela, signatures state that they “believe the awarding process was unfair and the contract was not awarded to the best candidate”.
“The last thing we can afford is to have an undesirable business in town that will harm the tourism industry here,” explained Traille. Marobela told Lowvelder that he had not been contacted by any of the business owners in Graskop, but that he would consider meeting with them if they did.
Marobela’s plans for reinstating the resort was published in an earlier article and is available online at lowvelder.co.za
