Durban - Economic Development, Tourism and Environmental Affairs (Edtea) MEC Ravi Pillay has warned that the failure of municipalities to deliver basic services such as water and electricity is having a detrimental impact on the province’s tourism and economy.
Pillay said delivery of water and electricity supply were key to the economic progress of the province. The South Coast is currently facing a water crisis that has led to violent protests, while Msunduzi Municipality is grappling with an erratic electricity supply.
Addressing members of the Edtea portfolio committee last week, Pillay gave a brief update on how the province’s tourism, especially accommodation, had performed during the Easter break.
“The tourism sector remains a key sector for us, not just psychologically, but in terms of job creation. The tourism sector is one of the big producers of jobs. I think it is important to comment that as we do this work in terms of economic development, growth and resuscitation, we have to lift the issue of the local government’s role in economic development.
“I have said this many times and I am probably going to repeat it, that water and electricity are key economic issues. Water and electricity relate to the base, the foundation, to be able to do other economic activities.
“An incident that demonstrates this was in Hibberdene in the South Coast where they were severely affected by water shortages. In one case I think 250 guests had to leave because they could not be sustained without water. Yes, Hibberdene is a small town but it is symbolic of what is likely to happen if this issue is neglected,” said Pillay.
He said signs of the tourism industry’s recovery were encouraging.
“We are cautiously optimistic on the occupancy we achieved this (Easter) weekend, although the final figures are not out. There was 60% in eThekwini, 80 to 90% in uThukela that covers the Drakensberg. These are encouraging signs we hope to replicate come the July holidays,” he said.
Pillay said there was also positive news that Zimbali Hotel had found a buyer, and other hotels had opened during Easter, while the Hilton Hotel was looking for a more sustained recovery plan before they could reopen.
Committee member Heinz de Boer said there was a clear link between the economy and local government and economic development within the province.
“It is simply economics that businesses do not want to invest in areas that are not well looked after and cannot deliver basic services to its residents, never mind to business areas,” he said.
The Mercury