The Cape Times article “Restaurants, hotels ‘need innovation to survive slump'” (28 May) appears to exaggerate the effect of the credit crunch on the hospitality industry.The hospitality players interviewed are not reflecting the seasonality problem, which affects the hospitality business badly in winter in Cape Town, compared to many other cities in South Africa.
Misleading reports heralding closures of restaurants in Cape Town, neglect to correct these when a restaurant like Summerville in Camps Bay never stopped trading – the liquidators handed over the running of the restaurant to new owners on 1 May, just a week after the news that the restaurant had “closed down”. Bruce Robertson, of The Showroom, which closed down at the same time, has already opened a new but smaller “gourmet bunny-chow restaurant” called The Quarter. Ian Halfon has also denied that his coffee shop Donatella’s in the V & A Waterfront closed due to the credit crunch. He says that his lease expired.
The hospitality industry has a lot to be grateful for, and does not need to ride on World Cup 2010 to say that all will be well. The British and Irish Lions rugby matches in Cape Town on 13 and 23 June will lead to many hotels and guest houses being fully booked around those dates, and these rugby fans are staying for four days or more, which is unusual for winter bookings. Sadly, the IPL did not benefit the mainstream guesthouse and hotel industry in our city at all.
The five successive interest rate cuts are fantastic news for all with bonds on their guest houses and B & B’s – the Whale Cottage bond costs for four guest houses are now down by R 50 000 per month compared to December 2008, when the first rate cut was announced. This means that Whale Cottage can afford to drop its winter rates by 50 % relative to the summer rate, and it helps to cushion the reduced occupancy.
