Going up and up: Hospitality industry wants exemption from rates increase

Going up and up: Hospitality industry wants exemption from rates increase

The cost of living is just going up and up and up. The unemployment numbers are ridiculously high. And on top of all of that, the economy is not in a good state. With salaries being low, everyone is looking for a reprieve. And with municipal rates always rising or having stayed at high levels since the pandemic, the hospitality industry is now asking to be let off the hook.

The Federated Hospitality Association of South Africa (FEDHASA) has called for the hospitality sector to be exempt from rates increases. It says that this will give the industry a chance to bounce back properly after the pandemic.

“Our turnover has been reduced horrendously, hotels, for example, used to have occupancy between 60-70%. Occupancy is now around 30%… the turnover of hospitality and hotels has halved, as the same time, our municipal rates have stayed the same.”

FEDHASA Chair Rosemary Anderson told 702

Fedhasa says the government needs to decide whether it wants to help preserve jobs. Or if it wants to spend money on new businesses.

“Currently, it is very difficult to be financially viable in our industry. That’s because our rates are so high. And as we know, all the other costs are going up too. beforehand the rates were applicable, but they arent applicable now because our industry has been devastated.”

Breakdown of needs given to Lindiwe Sisulu

FEDHASA says this can be done by Sisulu facilitating meetings with various government ministers. Visa issues have long been highlighted as a key factor holding back the hospitality industry.

↯↯↯Read More On The Topic On TDPel Media ↯↯↯