Hotel giant Southern Sun’s annual report has noted a decrease in earnings from its KwaZulu-Natal operations while experiencing growth in its Maputo establishments.
This has been attributed to shipping business being redirected from the Durban Port to Maputo due to port inefficiencies and a negative perception of the city.
Southern Sun manages 14 hotels in KZN and in its 2024 annual integrated report recorded a decrease in earnings of 16% in the province.
The report said Durban struggled to attract tourists due to negative PR about issues such as polluted seawater and the after-effects of the July 2021 riots which impacted the perception of the city.
The hotel group has also revealed that its operations in Maputo achieved growth of 37% due to shipping business being redirected from Durban’s port.
Southern Sun hotels Maharani and Elangeni have lease agreements with eThekwini Municipality for the beachfront hotels which will expire in 2025.
However, the City has already said the lease would not be renewed as it was seeking new partners.
Tourism bodies have acknowledged that negative perceptions of eThekwini have affected tourism, with eThekwini Municipality and the KZN Tourism and Film Authority saying they had a number of initiatives to boost tourism.
Jeannie Sarno, chairperson of uMhlanga Tourism, said she agreed with Southern Sun’s report.
“It has been no secret that KZN has been struggling to regain the title of tourism destination of the country. We have not been able to regain the pre Covid figures when it comes to occupancy. There have just been too many factors post-Covid that have not worked in our favour as a tourism industry. Be it the riots, or the numerous floods we have had causing further damage to what was already a delicate infrastructural system.”
Sarno added that they were grateful that President Cyril Ramaphosa realised that KZN needed some revitalisation.
“Since President Ramaphosa said more attention and priority needed to be done to rebuild KZN, we have had monthly meetings at national level.”
Brett Tungay, the East Coast chairperson of the Federated Hospitality Association of SA (Fedhasa), said tourism numbers were worrying.
“We do appreciate the work that the City and the government are doing but we simply haven’t reached the pre-Covid numbers.
We need to get more foreign travellers into KZN.”
Tungay added that the perception of the city had affected tourism. “We welcome the Presidential Working Group and we are engaging with them to ensure that the message gets out there.”
The CEO of the KZN Tourism and Film Authority, Sibusiso Gumbi, said the authority always aimed to continually work with various partners to ensure that KZN remained a top-of-mind domestic tourism destination.
“We have been faced with challenges of beach safety due to the damage of infrastructure due to floods and acknowledge the negative impact that this has had on the tourism establishments in the Durban beachfront and Destination KZN as a whole. We are working together with eThekwini Municipality, through the Tourism Revitalisation Committee, to resolve these through various other government structures. We have ongoing marketing interventions across all media platforms ensuring travellers that KZN is still the only destination to visit,” Gumbi said.
Municipal spokesperson Gugu Sisilana said the City did not wish to comment on the report by Southern Sun as they had regular engagements with them and the sector as a whole.
“Durban has intensified its efforts to position itself as a leading destination for business and leisure tourism.
Over the past 12 months, the City has implemented a series of robust initiatives aimed at boosting tourism, with a focus on cruise tourism, industry partnerships, visitor safety, and community engagement.”
Sisilana added that this included Durban Tourism working in collaboration with Transnet National Port Authority (TNPA).
“We welcomed the iconic Queen Mary vessel on April 2, 2023. This visit not only bolstered relationships among key stakeholders but also marked the beginning of the cruise season for 2023.
Durban Tourism has prioritised collaborations with industry associations to revitalise tourism in the city and by working with cruise liners and industry players to enhance Durban’s reputation as a safe and appealing destination.”
She said the City recognised the importance of the safety of tourists.
“Durban Tourism hosted its inaugural Tourist Safety Workshop in conjunction with the SAPS and other stakeholders. Durban Tourism remains active in international marketing, participating in various trade shows and establishing partnerships with airlines to increase global route access.”
Despite Southern Sun’s report, TNPA said the 2023/24 cruise season proved to be a success.
“This accentuates Transnet’s potential to contribute to economic development by showcasing South Africa’s attractive destinations to cruise tourists.”
The Mercury