Update
PLETTENBERG BAY NEWS - The Bitou Municipality has broken its silence over its proposed tourism bylaw which had sparked a furore among residents and tourism stakeholders over the past month.
The bylaw, which could see the municipality largely control tourism in Plettenberg Bay, has generated fears that the town’s economy would suffer.
Some of the most controversial issues include the establishment of a new tourism board; the composition of the board which leaves the decision making largely in the hands of the municipality; the registration of tourism businesses with a tourism organisation and subsequent “fees, charges and tariffs” payable. There is also a penalties clause which includes fines or jail time for those who do not comply.
The proposed bylaw is open for public comment until 8 June, but has already resulted in a petition signed by more than 2 000 locals so far.
Reports are 'untrue'
Municipal spokesperson Manfred van Rooyen said that despite it being widely reported on various platforms that the municipality is seeking to “close” Plett Tourism, "nothing can be further from the truth". Therefore we want to state categorically and unequivocally that neither the council, nor the administration of Bitou Municipality is involved in any process or mobilisation to collapse the operations of Plett Tourism,” Van Rooyen said.
He added that the municipality wanted to provide clarity on the matter including that the local tourism function was a municipal competency “with concurrence to provincial government that has the competency of tourism”.
“Plett Tourism is a voluntary association and not a municipal entity, statutory agency or public private partnership.
'Guided by SLA'
“In the context of the applicable legal prescripts, the primary relationship between Bitou Municipality and Plett Tourism Association, prior to the drafting of the bylaw on local tourism, has been guided by a service level agreement since 2013. The most recent agreement was signed on August 4 last year. In broad terms Bitou Municipality agrees and commits to transfer funding to Plett Tourism, linked to specific projects, functions or events, related to destination marketing, tourism-related activities and tourism development strategies,” Van Rooyen explained.
He added the current agreement would terminate on 30 June 2018 and that the structure, as contained in the draft bylaw, would then become operational on 1 July, subject to adoption and approval of the draft bylaw by both the mayoral committee and council.
'Tourism got R19m in 4 years'
“It is important to state that the transfer of funding to Plett Tourism is guided under the provisions of section 67 of the Local Government: Municipal Finance Management Act, No. 56 of 2003.
“It is against the background of the constitutional and applicable legislative prescripts that Bitou Municipality has drafted a bylaw on local tourism that will establish a tourism service utility that will assist in the execution of its local tourism mandate and the development of local tourism.”
Van Rooyen further said that in terms of the provisions of the agreement with Plett Tourism, Bitou transferred funding to Plett Tourism in tranches, based on the agreed outputs and outcomes, as detailed in the annexure to the main agreement. “In terms of its commitment, Bitou, with a population of 59 000, has transferred more than R19-million to Plett Tourism over the past four years. This is an average of R5-million per year.”
Bitou 'way above' other areas
He added that Bitou had made a comparative study of other municipalities in the Western Cape and found that its contribution to Plett Tourism, with the exception of the City of Cape Town, was “way above the rest” when considering the per capita spend.
He said Knysna Municipality as an example, with a population of 73 000, contributes R4-million every year to its local tourism organisation. "Stellenbosch Municipality, with a population of 173 000, contributes R3.7-million per year to its three local tourism organisations. George, which has a population of 208 000, budgets R5-million as an internal function, while Mossel Bay, with a population of 94 000, funded one organisation with R3.8-million.”
'Muni remains committed'
Van Rooyen said public participation towards finalising the draft bylaw would include engagements with all stakeholders, role players and interested parties in local tourism.
“In the absence of the bylaw, Bitou Municipality continues to make financial contributions towards Plett Tourism within the confines of the applicable legal prescripts,” he said.
The municipality remains committed to invest in the tourism sector as a critical component of its strategies and policies to enhance and broaden the local economy, creating jobs, diversifying the local economy and to facilitate the transformation of the tourism sector, Van Rooyen stated.
He also said that an amount of R5-million has been provided for in the bylaw, to “operationalise” the tourism service utility that would be established. “This illustrates the importance that Bitou affords to its local tourism mandate.”
Read a previous article: Bylaw will not 'close' Plett Tourism, says Bitou
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