New property classification category needed for hotels

  • 📰 SowetanLIVE
  • ⏱ Reading Time:
  • 57 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 26%
  • Publisher: 63%

Property Property Headlines News

MARC WACHSBERGER | New property classification category needed for hotels

That’s why municipalities need to add a new category for hotels to their property classifications, charging rates and utilities fees that still cover their costs, but that don’t exploit hotels at the expense of job creation.

This change would be an immensely welcome boost to the sustainability of the hotel industry, which was plausibly the worst affected by the pandemic. While industry continued to manufacture, and retail continued to trade, the country’s hotels were forced to close. Even when they reopened, it was only to 25% or lower occupancy rates – and without the income boost from international tourists.

It is true that South Africa’s hotel sector had its highest occupancy rate in March this year since the beginning of the pandemic. However, it is also true that most hotels are charging the same rack rates as they were in 2019 – even though Eskom’s rates have gone up significantly every year, and municipalities’ rates have increased annually too.

Those that would like to reopen and welcome their former employees back simply cannot, because their municipal rates and utilities costs are just too prohibitive. This means that the hotel businesses that still owe municipalities money despite having closed their doors, will never reopen – and the municipalities are unlikely to ever see the money that is owed to them.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 13. in PROPERTY

Property Property Latest News, Property Property Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

How COVID added to the stresses of the most vulnerable young women in South AfricaPoverty is a key driver of poor mental health. People who also experience insecure income, housing and food supply are particularly vulnerable. I was scammed through Bitcoin couple of months ago, I started hating Bitcoin until I was introduced to Allison_Grillo, and I gave Bitcoin trading another try, I successfully withdrew $35,000 after two weeks of trading, am so grateful Allison_Grillo thank you. Not covid but the regulations the evil government implemented. Ok very informative. Now can we talk about the case of a fomer eff what what and his daughter. So they arrested two people so fast. When would ordinary south african receive prompt service like this
Source: eNCA - 🏆 49. / 51 Read more »