Cape Town’s tourism industry hurting

Cape Town’s tourism industry is struggling to survive because of a significant drop in the number of American and European tourists coming to South Africa as a result of the international economic recession, which has placed greater financial pressure on the tourism industry worldwide.

According to Dirk Elzinga, Cape chairman of the Federated Hospitality Industry Association of South Africa, tourists can currently book double-rooms in Cape Town for as little as R475 a night and can stay in a five-star guest house for less than R400 a night.

Guesthouse owner, Carol Armstrong-Hunter, who represents guest houses on the Fedhasa Cape committee says that while the airlines are still bringing tourists into the country most of these people appear to be staying with friends or relatives rather than booking into tourist facilities.

She says that many guesthouse owners in the Western Cape had closed their operations for the winter season.

While the tourism picture is bleak for Cape Town, the rest of the country seems to be doing normal business with hotels in Johannesburg and Durban reporting that the winter season was in line with previous bookings last year.

Danny Bryer, director of sales at Protea Hotels says that Johannesburg remains a business destination but those in Durban’s Umhlanga Rocks were faring well. He says the group has resisted price cuts in room charges.

Despite the tough conditions facing the tourism industry in the Western Cape, several hotel groups are still investing in the country. The Hilton International group has opened a new five-star hotel in the city and set up a regional office for its operations in South Africa.

Moreover, Protea is opening a new hotel in Durbanville Hills aimed at the business market. Rezidor is expanding its operations in South Africa and the Marriott group is looking for additional management opportunities in this country. 

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Just got back from a lekker long weekend in Cape Town.The “winter specials” we were offered in Cape Town, brought some sanity to the usual “rip off” that  Cape Town has become over the last couple of years.The Foreign Golden Geese, it seems, have decided to go to more affordable “perchings” in SA.Can’t say I blame them when a beer costs the same everywhere in SA, except Cape Town. Beef is bought from NationwideAbattoirs which have a weekly floor price of about R35 per kg plus about R15 labour to handle & butcher it and steaks gets sold for upwards of R480 per kg!! That’s a R415 per kg inflation after overheads from a fixed cost of about R65 for cooking plating and serving!!! (Not the Slaapstad we know, when it comes to charging over the top prices) Foreigners are not idiots like you. “A captive audience” that you have tended to “milk” in the past has at long last, voted with it’s feet!! Stop being so Greedy!!! Give great service, great pricing and you will get great turnover!!! - Peter