The DA in the Western Cape notes the announcement today by President Cyril Ramaphosa to launch the Tourism Equity Fund which aims to drive transformation in the tourism sector. The over R1,2bn Fund will support black-owned tourism enterprises.
However, we do call for urgent clarity on firstly, the allocation of funding to provinces and, secondly, for national government to reject the race-based criteria applied to the funding. Tourism businesses in the Western Cape support the livelihoods of many of our residents and their families, and the challenges created by Covid-19 as well as the poor management of regulations does not discriminate on the basis of race.
I have previously called for national government to support the tourism and hospitality sector in the Western Cape. As Chairperson of the provincial Standing Committee for the Finance, Economic Opportunities and Tourism Committee, we will use our oversight role to see to it that ultimately the right funds reach those who need this lifeline.
A further glaring omission is that the President has not heeded our calls for easing of lockdown regulations in the province. Whilst funding is welcome – and necessary – at this stage, what is more sustainable is to follow the scientific evidence. All health data points in the direction that the province is ready for our tourism and other economic activities to be safely reopened. And it is exactly this that will put bread on the table for thousands of residents.
Extending the curfew, readjusting the regulation regarding the sale alcohol and reopening our beaches would see hope brought back to industry which simply cannot whether this latest storm.
The tourism industry is one of the most important economic contributors and job creators in the province. Tourism accounted for 9% of the country’s GDP before lockdown restriction were implemented in March 2020 and injected the local economy with R25.7 billion in 2019. It was estimated that 75 000 jobs are at immediate risk before the most recent Level 3 lockdown restrictions. Mass cancellations at guest houses were seen in the Garden Route due to the irrational beach closures and over the peak tourism season, local attractions such as Robben Island, Table Mountain National Park and the V&A Waterfront saw a decrease on average of 60% in visitors.
The DA in the Western Cape remains committed to supporting and strengthening the local tourism and hospitality industry.
