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Hospitality sector anticipates positive reforms in budget speech

Sameera Casmod | sameerac@radioislam.co.za
20 February 2024 | 10:27 a.m.SAST
1 minute read

Picture: Google Images

Finance Minister Enoch Godongwana will tomorrow deliver the annual budget speech in Cape Town.

While there is an expectation that the National Treasury will impose deeper austerity measures in the budget, the hospitality sector remains hopeful for much-needed support following the impacts of the COVID-19 pandemic.

Alan Campbell, director of Anew Hotels and Resorts, discussed the sector’s recovery and expectation for government intervention on Radio Islam International earlier today.

Despite a 23% lag in comparison to pre-pandemic levels, Campbell underscored positive signs of growth, including an influx of 8,5 million international visitors.

Campbell noted the importance of transparency and collaboration in addressing the sector’s needs.

“We want to see the government being a little bit more deliberate about the sector,” Campbell said.

A key focus for the hospitality sector lies in infrastructure upgrades, particularly in reducing load shedding and enhancing accessibility. Campbell highlighted the detrimental effects of inadequate road infrastructure, which has led to the closure of some resorts and hotels.

Campbell also underscored safety concerns in the industry, as well as the need for long-term renewable energy solutions.

“Safety and security [is also a concern]. We want visitors to be safe… And we need a bit more of a long-term solution to our challenges with infrastructure.”

Campbell said that the sector is hoping for increased budget allocations, citing its significant contribution to national economic growth and employment opportunities.

“We would definitely like to see a higher budget allocated for tourism. Tourism presents an opportunity to grow our economy, and currently tourism globally is performing far beyond the meagre growth of our economy,” Campbell said.

with tourism projected to contribute 6.8% of GDP globally.

Tourism is projected to contribute 6,8% of global GDP this year, Campbell noted. Internationally, while South Africa lags behind regions such as Latin America, Europe, and North America, Campbell expressed optimism for the sector’s gradual recovery. He noted the sector’s potential to create employment in the country, and underscored the need for collaboration between the private sector and government to realise the industry’s full potential.

Listen to the full interview on Sabaahul Muslim with Moulana Sulaimaan Ravat here.

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