FEDHASA asks for hospitality industry to be exempt from rates increase

Rosemary Anderson, Chairperson at FEDHASA spoke on the John Perlman show about the state of the industry and why they need a break from the increasing rates.

FILE: According to Anderson, hotels specifically are having to operate with extremely reduced turnover as a result of the lockdown. Picture: 123rf.com

Two years of lockdown hit the entire country, with the hospitality industry suffering a particularly hard blow.

The Federated Hospitality Association of South Africa (FEDHASA) has called for the hospitality industry to be exempt from the municipal rates increase to give the sector a chance to recover and thrive.

Chairperson of FEDHASA, Rosemary Anderson, speaks to John Perlman about the state of the industry and why they need a break from the increasing rates.

According to Anderson, hotels specifically are having to operate with extremely reduced turnover as a result of the lockdown.

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.

Rosemary Anderson, Chairperson at FEDHASA

While rates used to account for around 3% of a hotels revenue, they are now accounting for about 10%, which is making it near impossible for the industry to operate. Reducing the rates for the hospitality industry could have massive implications, not only for the businesses, but also for job creation and the country as a whole.

This article first appeared on 702 : FEDHASA asks for hospitality industry to be exempt from rates increase