SA's biggest hotelier plans own Cape Town water supply

Johannesburg - Tsogo Sun Holdings [JSE:TSH] plans to build a desalination plant that will help supply its Cape Town hotels with their own water, shielding guests of South Africa’s biggest hotel and casino operator from the city’s deepening water crisis.

The alternative water source should be in operation for properties including the five-star Westin by early March at the latest, Tsogo Chief Operating Officer Ravi Nadasen told reporters in Johannesburg on Wednesday.

That’s comfortably ahead of the scheduled May 11 date for so-called Day Zero, when city authorities threaten to turn off most taps.

“There is a plan in place that all of the alternative water sources will come on board before Day Zero comes,” Nadasen said. “The current situation in Cape Town is going to become the new normal. We’ve got to be responsible as well.”

Africa’s biggest tourist destination is deploying drastic measures to keep water running as long as possible after a three-year long drought all but exhausted local reservoirs.

Cape Town residents have been urged to use as little water as possible, with the daily allocation set at 50 liters per person, and hotels have removed bath plugs and urged visitors to keep toilet flushing to a minimum.

About 1.6 million tourists visit the Cape Town area per year and spend about R40bn ($3.3bn), according to South African Tourism. Co-operation between industry and government can ensure the tourism economy remains robust, the industry body’s chief executive officer, Sisa Ntshona, told reporters.

“South Africa cannot afford to lose confidence as a tourist destination,” he said.

* SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

ZAR/USD
17.62
(-0.12)
ZAR/GBP
23.01
(-0.05)
ZAR/EUR
20.78
(-0.03)
ZAR/AUD
12.62
(-0.03)
ZAR/JPY
0.17
(-0.88)
Gold
2034.21
(+0.05)
Silver
28.28
(+0.09)
Platinum
961.50
(+0.38)
Brent Crude
44.55
(-1.53)
Palladium
2166.01
(+0.63)
All Share
56757.73
(-1.56)
Top 40
52435.65
(-1.72)
Financial 15
9897.96
(+0.10)
Industrial 25
74671.49
(-1.98)
Resource 10
58948.78
(-1.89)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 929 votes
It depends on how the funds are used.
74% - 6236 votes
No. We should have gotten the loan elsewhere.
15% - 1283 votes
Vote