Like many other industries, the tourism industry is devastated by the Covid-19 pandemic.
As a labour-intensive industry, the lockdown has killed many jobs and business for the year. Everything must be done now to protect every single tourism job and promote future jobs as we safely return people to work.
That is why the Democratic Alliance (DA) is calling for the Minister of Tourism, Mmamoloko Kubayi-Ngubane, to immediately implement regulations to make star grading of places of accommodation both free and compulsory.
Making grading free is generally accepted by all political parties in the Tourism portfolio committee. The question, therefore, is why there is a delay in its implementation?
At the portfolio committee meeting last week, the department explained that the cost of grading is significantly reduced if businesses meet certain conditions. This however is not the view of the committee which is calling for grading to be completely free without any stringent conditions.
In a portfolio committee meeting on 4 July 2019, we were advised that the average cost of grading was R5200 and that the proposed discounted figure for grading would be R500 if it were to be made compulsory.
The reality is, small business owners in the sector should not pay, and the department should assist as there is no way they can afford it in the current crisis.
In a parliamentary briefing report before the lockdown, it was found that the cost of grading places of accommodation continues to be the biggest barrier to becoming graded. In a study conducted by the Tourism Grading Council, 54% of the sample cited grading as being too expensive.
This means more than half of guesthouses, bed and breakfasts and other places of accommodation simply find it unaffordable. This will present a significant barrier to new businesses, particularly in townships and peri-urban areas to operate and create jobs.
Making grading compulsory would hold a number of benefits for the sector, such as better data gathering for the department, protecting the brand image of the country by standardising advertised ratings, and accruing advertising benefits to the places themselves.
Organisations such as TripAdvisor, Hello Peter, Twitter, and other social media and rating and review companies are becoming increasingly influential in how a country’s brand is viewed in a more digital and open world. SA Tourism in this instance has a responsibility to protect the brand of South Africa and its tourism potential.
The minister should stop the unnecessary delay and announce that grading will be free of charge in the tourism recovery plan.
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