Fuel hike: fewer, shorter holidays

2012-02-23 00:00

HOTELIER Peter Renwick fears the fuel hikes and the electricity increases because of their chain effect.

“They will definitely erode the available spend that people have, which will impact on our business,” said the CEO of Scottburgh’s Cutty Sark Hotel.

“Our clients are reliant on disposable income. Increases in electricity, fuel and food prices will eat away at that disposable income.”

Renwick said people would probably take shorter and fewer holidays.

“It is already such a competitive market and everyone is fighting for a chunk of the cheese.

“This would mean fighting harder for business,” he added.

Renwick said sin taxes would not be of much consequence.

“Alcohol is a small portion of our market,” he said.

Property rates, electricity, water and salaries were his hotel’s major expenses, he said.

“Our operating costs vary depending on occupancy. This year we are really feeling the hike in water and electricity.”

Renwick said that if there was any surplus from any cutbacks in taxes they would be invested back into the hotel.

“We will use that money for improvements to the hotel,” he said.

• witness@feveronline.co.za

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