Following various reports, opinions and letters that have appeared recently in the printed media about dramatic price increases in the Cape tourism industry, Joyce Witbooi, Western Cape Minister of Tourism and Gambling, said that the Western Cape tourism department is at present facilitating platforms for this issue to be debated by the industry and other tourism partners. "It is not the role of government to regulate prices, but we can facilitate and monitor the situation closely."

A meeting was this week called with key tourism role-players, including the Cape Chamber of Commerce and the three Western Cape chapters of the main trade bodies active in the South African tourism industry - ASATA serving the retail sector, Fedhasa serving the accommodation and restaurant sector, and SATSA serving the inbound sector (tour operators, airlines, attractions, etc.).

Minister Witbooi said "It is debatable whether prices are impacting on tourism arrivals. We have just received figures from Cape Town International Airport showing increased passenger flow. International arrivals in December were up by 5%, while domestic arrivals were up by 6-7% over the same time last year."

"What is true, is that there have been isolated instances of dramatic price increases, but these are the exception rather than the rule. The strength of ou currency at the height of the festive season also exacerbated the pricing situation. Compared to this time last year, the currency has strengthened significantly."

Minister Witbooi said it is important however, that the industry understands that long term-tourism growth is key to generating employment and poverty alleviation in our province. If tourism is to be a sustainable component of the South African economy, the industry needs growth and transformation. To accomplish that, the Western Cape needs to be, and needs to be known, as a value-for-money destination.

"I want to appeal to our industry to maintain this province's name as a value for money destination. In order for our tourism industry to develop into a sustainable industry, we have to offer an all-round quality service to tourists. When they leave, they must feel that the visit was good value for money and that they would like to return and that they would recommend the Western Cape to their friends and family. In this way tourism will develop into a sustainable industry. In the long run the tourism industry will not grow if we charge exorbitant prices for our services."

Business representatives at the meeting identified certain problem areas and undertook to take the matter forward and deal with them within the business sector.

Minister Witbooi added, "I think it is in the best interests of the Western Cape that the uncompetitive price issue has now come to the fore. Our tourism industry is relatively young and these challenges offer existing structures the opportunity to deal with them in partnership."

Issued by: Western Cape Ministry of Tourism and Gambling
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