Durban — The Democratic Alliance in eThekwini has expressed its concern over the City’s economy, which is on a steady decline.
Councillor Sakhile Mngadi said that the DA in eThekwini will submit alternative plans to address critical economic reforms required to address the City’s ongoing economic decline.
Mngadi said this follows a presentation to the City's Economic Development and Planning Committee on Thursday, which painted a bleak picture.
“While there has been a significant increase in tourists to the city, there is concern that these visitors are not staying in the City. In addition, hotels reported the worst season in recorded history,” Mngadi said.
He said that it is also a concern that Foreign Direct Investment in real numbers has not translated into job creation where unemployment in the city is significantly higher.
“The biggest takeaway is the 1.3% GDP (gross domestic product) growth rate, which is nowhere near where it should be, and the concern that the finance industry, which is not a major employer, is driving this increase,” Mngadi said.
“These figures are troubling, and the City's ongoing deterioration necessitates a unified and dedicated political approach that prioritises economic reforms and investor attractiveness.”
Meanwhile, earlier this month, eThekwini Municipality mayor Mxolisi Kaunda said that he had been encouraged by the positive tourism outlook for 2023.
As a result, Kaunda has called on Community Tourism Organisations (CTOs) to work with the city to promote Durban as the preferred destination for both local and international tourists.
The mayor was speaking at an engagement with the leadership of nine CTOs in the municipality on February 1 to enhance strategies to promote their product offerings.
Kaunda said the meeting took place at a critical time when the global outlook for the tourism sector looked positive for growth. However, it requires a concerted effort from all stakeholders to work together.
“There are signs that the sector is gradually returning to pre-Covid-19 levels. According to the World Travel and Tourism Council, global travel and tourism GDP (gross domestic product) is expected to grow by 5.8% per annum on average over the 2022 - 2032 decade.
“Furthermore, tourist numbers into Durban appear to have displayed resilience as passengers into King Shaka International Airport have increased by 321% when comparing the latest flight destination figures of December 2022 to their most recent all-time low in July 2021. We are currently observing a dramatic increase in international visitors as more international airlines are opening new routes in Durban,” Kaunda said.
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