Msunduzi tourism hub FIGHTS FOR TENANTS accommodates external tenants municipality loses about on rent a month 90% R20 000

2015-11-25 06:23
PHOTO: nqobile mtolo The second floor is dedicated to the Small Enterprise Development Agency (Seda) and accommodates 10 office spaces which cost R75 per m2.

PHOTO: nqobile mtolo The second floor is dedicated to the Small Enterprise Development Agency (Seda) and accommodates 10 office spaces which cost R75 per m2.

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THE Msunduzi tourism hub, which reportedly cost more than R18,4 million to build and which has struggled to attract tourism- related tenants, has now approached normal businesses to fill the vacant offices.

It came to light at the recent economic development portfolio committee that the hub is unable to collect sufficient rent to cover the building cost. The process manager for local economic development Sipho Zimu said: “It was suggested that we headhunt to get appropriate tenants. The configuration of some of the offices was not suited for things which were thought would operate in the area in terms of the restaurant.”

It has been reported that 90% of the offices at the hub accommodate external tenants.

The hub has cost more than the R18,4 million, which was the amount estimated for the project, but due to glitches experienced by the service provider and the municipality it cost more. The project was launched in 2011 and was funded by the KwaZulu-Natal Department of Co-operative Governance and Traditional Affair, the aim of which was to boost local tourism.

Currently the hub houses UMgungundlovu FM, Gijima Printers, Small Enterprise Development Agency (Seda), Xolisizwe Trading and Coconut Grove.

“We have written a report asking that what was intended for those offices be changed to office space. The report is on its way.

“With regards to uMgungundlovu FM, we have airtime that we get as council, and we are dealing with the legal issue around our partnership. We have taken that to our legal department to look into,” said Zimu.

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