Levy could boost tourism
It is common practice in other destination cities around the world.
A NEW 10 percent ‘hospitality levy’ is to be introduced on April 1 next year, MEC Michael Mabuyakhulu, announced in Margate on Monday night.
Speaking to about 200 Ugu district leaders at a gala dinner at the Margate Hotel, the MEC of Economic Development, Tourism and Environmental Affairs spent some time explaining the reasons behind the levy ‘before there is an elephant in the room’.
Such a levy was common practice in many other destination cities around the world and was effective in helping government to grow tourism and conferencing.
He said that government – provincial and local – spent about R450-million a year on attracting major world events to South Africa.
So much more could be done with a public/private partnership, he said.
Mr Mabuyakhulu stressed that the levy would be paid into a special fund and used for the industry only.
“We want total transparency. We will be engaging the tourism think tanks and all industry players before the end of September,” he said.
