The City of Cape Town has approved a proposal to increase the grant for Cape Town Tourism to promote the tourism sector and boost economic growth.
During a special council meeting held on Tuesday, it was proposed that the current grant amounts for Cape Town Tourism for the financial years 2023/24 and 2024/25 should be raised by R2.6 million each financial year.
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According to News24, the report noted that Cape Town Tourism expressed concerns regarding the lack of inflationary increases. The organisation argued that this would result in a real reduction in their finances over the three-year period. This decrease in funding is particularly significant considering the challenges faced by Cape Town tourism due to the COVID-19 pandemic.
Despite these challenges, the report emphasised the importance of tourism as a key driver of economic growth, job creation and GDP expansion. It stated that tourism played a vital role in the development of Cape Town.
‘By not providing an inflationary increase, the City is inadvertently stifling the projected growth of the sector,’ it said.
Initially, a fixed amount of R52 million per year was approved for the three-year agreement without any provision for inflationary increases. However, it was agreed upon to increase the grant amounts for Cape Town Tourism by R2.6 million for the financial years 2023/24 and 2024/25, News24 reports.
These increased amounts will contribute to the Find Your Freedom Conversion Campaign with Expedia, a successful campaign that has increased bookings and visits to Cape Town. The campaign has resulted in R147 million in direct and indirect expenditures and has created approximately 755 employment opportunities.
Nadia Satarien from the Cape Coloured Congress expressed concerns about the limited impact of tourism on coloured communities and indigenous cultures. Satarien believed that the DA-led city did not have the intention to uplift the economy of the Cape Flats.
‘While tourism brings economic opportunities, we must be honest and say that tourism has no real effect when it comes to our coloured communities and our indigenous cultures. When it comes to this DA-led city, it is clear you have no intention to uplift our economy in the Cape Flats,’ she said.
Paul Jacobson from Freedom Front Plus commended the City and Cape Town Tourism for their outstanding work. He urged Cape Town Tourism to have a greater influence on City politicians than the other way around. Jacobson expressed a desire to avoid initiatives tainted by political interference.
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‘My plea is that Cape Town Tourism dictates to City politicians what is necessary rather than the other way around. We cannot waste our time on initiatives that reek of political interference,’ he said.
James Vos, the City’s mayoral committee member for economic opportunities, emphasised the department’s investment in youth development to enhance skills in the tourism industry. He stated that the City was committed to fostering economic growth in various communities on a daily basis.
‘We have invested in the youth to shape the skills of the tourism industry. We have not forgotten the other parts of the City that have been fostering economic growth in communities. We do this every day,’ he said.
The Cape Coloured Congress and the Patriotic Alliance reportedly rejected the proposal.
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Picture: Jean van der Meulen
