New MEC for Finance, Economic Development and Tourism, Garth Strachan, has written to Mayor Helen Zille, asking the City to reconsider its withdrawal of funding from Cape Town Routes Unlimited.

 

He writes: “For inexplicable reasons the City of Cape Town has set up a parallel structure to the destination marketing organisation, Cape Town Routes Unlimited (CTRU) and withdrawn its funding from CTRU and Wesgro, the provincial trade and investment promotion agency. “

 

“This appears to make no constitutional, economic or practical sense. Efforts by the provincial government to resolve these issues to the mutual satisfaction of both province and city have come to nought. I therefore publicly appeal to you, in the interests of the people and the Province, to reconsider these actions.”

 

“When she assumed office in August 2008, Premier Lynne Brown said the provincial government would do all in its power to ensure relations between Province and the City were repaired in the interests of efficient public service provision to the people of the region. “

 

“This, the Premier said, applied to all areas where the provincial government worked with the City: road construction, public transport, preparations for 2010, health provision, economic development and so forth. “

 

“The Premier specifically instructed that whatever reservations the City may have had with regard to structure, functioning and operations of Wesgro and CTRU should be addressed and resolved to the mutual satisfaction of both city and province. This could include restructuring the Boards of both organisations, and any other changes that might be reasonably accommodated. “

 

“We hoped the departure of former ID Councillor Simon Grindrod might signal a change of heart and a commitment to co-operation between the two governments. But no change has been forthcoming now that the DA’s Councillor Nielsen has taken control.”

 

“It is difficult to make sense of the City’s approach to these matters.  How can the duplication of costs, personnel and programmes be justified? How can a withdrawal of funds to Wesgro and the threat this poses to the provincial economy be justified? Was the willingness of the Provincial Government to make changes the City felt were needed to both organisations insufficient grounds to work together? “

 

“In the case of CTRU, an agreement to ensure shared custody by the Province and City to promote Cape Town and the Western Cape as a tourist destination is underpinned by Provincial Legislation, which is now being flouted. “

 

“Cape Town Tourism, hitherto responsible for tourism information centres, has been tasked with marketing Cape Town on its own and distinct from the Province as a whole. By so doing the City will duplicate costs, personnel and marketing operations aside from the fact that there will of necessity be a long time lag as new staff are employed and programmes put in place. In fact, Cape Town Tourism has not been able to spend the approximately R11 million which would have otherwise been spent on international marketing by CTRU since the withdrawal of funding by the City. “

 

“As a recession looms and all sectors of the economy begin to feel the squeeze, a failure to spend these funds on international marketing efforts will undoubtedly have an impact on tourism in the Province in the year to come. “

 

“Under the constitution, local government has no mandate for trade promotion or industry development and the City would not be constitutionally entitled to undertake these activities on its own. The withdrawal of funds from Wesgro, ironically set up by the City and the Chamber of Commerce in 1982, means that programmes to promote trade and investment have been placed under immediate threat and the management and staff of that organisation put under enormous uncertainty and strain. “ 

“CTRU, with the Department of Economic Development, has been successful in securing a collective Western Cape Tourism Development Framework. Business, labour, civil society and government have developed this shared vision of a sustainable, labour absorbing and globally competitive tourism sector. “

 

“We cannot afford the confusion of two marketing organisations. It is impossible to market Cape Town without including the wine routes of the Boland or whale watching in Hermanus. Confusion has been created in the tourism market place and great harm is being done to 2010 marketing because CTRU is now under-resourced and CTT is unable to spend the City’s funds allocated to it. “

 

“Tourism is the jewel in the crown of our provincial economy. It depends on competitive marketing in a world where international tourists are being lured by competitors with huge marketing budgets. There is no doubt that the City’s moves in relation to CTRU will harm tourism numbers and we will lose ground in the special opportunity to market the destination for the long term that 2010 represents. The provincial government has avoided going the route of court battles with respect to the City withdrawal from CTRU and Wesgro. After numerous failed efforts in meetings and in correspondence and in the interests of all the people of the Province, I publicly appeal to the City to reconsider its actions.”

 

“The only logical and sustainable route to follow is to work together to make both Wesgro and CTRU work even better to fight poverty and unemployment and unlock development for the Province. Go-it-alone strategies will build animosity where there should be co-operation and build divisions where national, provincial and local governments should be working together to grow the economy and roll back poverty. “

 

Strachan’s letter to Mayor Zille is a surprise, as it comes nineteen months after the City gave notice of its intention to withdraw its funding from CTRU, and seven months after the actual withdrawal.     The City of Cape Town was justified in withdrawing its funding from CTRU, as a report by consultants appointed by the City had found the organisation to be inefficient in meeting its mandate to market the City and the province.