City injects money into tourism

By Buffalo City Reporter
11 July2008
TOURISM Buffalo City (TBC) has received a R5,13-million fillip from the City, which has also appointed a new chief executive for the entity.
The City has issued a statement saying that it has made a firm contractual commitment to use the services of the TBC over a period of five years. It will promote local tourism.
“The formal agreement between the parties was signed by the acting municipal manager, Amanda Magwentshu, and the chairman of the TBC board, Mervyn Gatcke, on Friday last week [4 July],” read the statement.
The municipal commitment came in the wake of a 2007 section 78 investigation that found that for Buffalo City to perform the tourism function using a municipal entity, an annual amount of R13,5-million would be required.
“Earlier this year the council mandated the executive mayor to investigate the feasibility of alternative options as the amount was deemed unaffordable. It was then resolved to continue using the services of the existing company through a formal service delivery agreement.”
In terms of this agreement, the TBC has accepted the responsibility to promote and market the tourism industry in the municipal area. This includes a special focus on marketing the attractions in historically disadvantaged areas.
The City has also seconded the senior municipal official, Peter King, to take up the role of chief executive officer of the entity for five years. The TBC has not had a chief executive since 2005.
The amount committed by the municipality will increase annually by an inflation-linked amount.
“The TBC can now look forward with confidence to the next five years. We are committed to working with all tourism stakeholders in the broader city to ensure that Buffalo City becomes a destination of choice for both domestic and international tourists,” read the statement.