CITY OF CAPE TOWN MEDIA RELEASE 20 OCTOBER 2011

The latest 70% hike in airport tariffs by Airports Company South Africa (ACSA) is bound to clip any potential growth for Cape Town’s already hard-hit tourism industry.

ACSA is being extremely reckless and inconsiderate in introducing new airport taxes of R96,49 for domestic passengers, R199,12 for regional passengers, and R262,28 for international passengers.

To impose such fees against the backdrop of the global recession and a major slump in the local tourism industry, smacks of unbridled opportunism, and will drive away tourists in their droves.

Moreover, according to the International Air Transport Association, ACSA airport tariffs are set to rise by 161% in the next five years, resulting in the highest airport tariffs in the world.

We don’t begrudge ACSA the right to raise airport tariffs in line with rising costs, but such crucial decisions should be taken with due consideration and proper consultation with its key business partners.

In the case of the latest airport tariffs, any short term financial gains for ACSA could result in irreparable long term losses for the tourism industry.

This is particularly so at this critical juncture in a price-sensitive economy when tourism stakeholders are pulling out all stops to boost a flagging industry.

“One gets the sense that monopolies such as ACSA believe that they have been given a blank cheque to squeeze maximum income from a captive market instead of providing the service at a level of efficiency and cost that helps local business to be internationally competitive’ said Alderman Belinda Walker Mayoral Committee Member for Economic, Environmental and Spatial Planning.

At its recent AGM, the Cape Town International Convention Centre has confirmed major expansion plans as it prepares to catch the next wave of international conferences, exhibitions, trade fairs and special events.

Next month, Cape Town Tourism plans to launch an international marketing campaign in London to attract thousands more tourists to the city and the region.

These hard-won gains could be lost through the little foxes such as astronomical airport taxes that threaten to spoil the vineyard.

A flourishing tourism industry is key to Cape Town’s job creation strategy. In 2009, its economic value amounted to R16,3 billion on the demand side and R7,8 billion on the supply side.

During this same period, the industry sustained 23 000 permanent and 10 200 temporary jobs.

In 2010, Cape Town International Airport recorded 3,3 million domestic arrivals and almost 700 000 regional and international arrivals.

It is the role of government to create the conditions that are conducive to enable business to flourish.

End

Issued by: Communication Department, City of Cape Town

Media enquiries: Alderman Belinda Walker, Mayoral Committee Member for Economic, Environmental and Spatial Planning, City of Cape Town, Cell: 083 6298031 or Tel: 021 400 1314