Wed 6 Mar 2013
The petrol price increase by 81 cents a litre today will have a severe impact on domestic tourism in the Western Cape, Capetonians thinking twice about leaving the city to spend a weekend or even a day in the Winelands, Hermanus, or up the West Coast. The new petrol price of R12,73 per litre is the highest ever.
The new petrol price will add between R50 and R60 to the cost of a tank of petrol, which can now touch on R700 per tank of petrol! Not only will it affect Tourism badly, but the cost of food and beverages, which are input costs to the hospitality industry, will increase, necessitating restaurants, hotels, and guest houses to increase their prices. Due to competitive pressure, however, this will have to be yet another increase the industry will have to absorb, to remain price competitive, especially as the winter season, with its extreme Cape Seasonality, starts in a short four weeks!
It is disappointing that no representative of Cape Town Tourism, Wesgro, SA Tourism, or the City of Cape Town’s Tourism, Events, and Marketing department have reacted to the petrol price increase, and the negative impact it will have on tourism!
Chris von Ulmenstein, Whale Cottage Portfolio: www.whalecottage.com Twitter: @WhaleCottage