FEDHASA applauds the move which ends month-to-month leases, unlocking South Coast tourism potential.
In a major win for tourism and hospitality on KwaZulu-Natal’s South Coast, the National Department of Public Works has taken control of 15 prime seafront properties in Ray Nkonyeni Local Municipality and delegated their management to KZN Public Works for the next 20 years – securing long-awaited business certainty for operators.
This milestone follows more than a year of active engagement led by FEDHASA after the association was alerted in early 2024 that numerous coastal hospitality businesses were being restricted to month-to-month leases by the local municipality. This untenable arrangement resulted in some businesses closing and many others struggling to trade sustainably.
“The industry simply cannot function on month-to-month leases,” comments FEDHASA National Chairperson Brett Tungay. “Without long-term security, operators are unable to obtain liquor licences, secure finance, invest in infrastructure or offer proper employment contracts. Compliance was near impossible.”
FEDHASA initially engaged CoGTA to intervene, requesting that leases be extended to practical timeframes or that the properties be transparently released to tender. However, little progress was made.
Following the formation of the KwaZulu-Natal Government of Provincial Unity (GPU) mid-2024, FEDHASA escalated the matter to the KZN MEC for Public Works, Martin Meyer. This prompted an in-person meeting in Durban with MEC Meyer and National Minister of Public Works, Dean Macpherson – who immediately recognised the risks to local tourism, jobs and investment.
On 10 November, Minister Macpherson’s department formally assumed custodianship of the 15 properties and delegated their management to KZN Public Works under a 20-year mandate. The move is expected to enable sustainable investment, unlock job creation and revitalise tourism along the South Coast.
Minister Macpherson, a strong advocate for tourism-led growth, emphasised the importance of providing long-term certainty for private-sector operators to invest with confidence and create sustainable jobs.
Many affected businesses attended the announcement and expressed deep appreciation to FEDHASA for championing the issue. Public Works officials also extended special thanks to FEDHASA’s KZN Deputy Chair, Mandy Massey, whose on-the-ground involvement, research and multiple site visits were instrumental in achieving this outcome.
“This is FEDHASA walking the talk,” said Brett Tungay. “We are committed to creating an operating environment where hospitality businesses can not only survive – but thrive.” FEDHASA looks forward to seeing these 15 properties rehabilitated and re-activated, helping to unlock investment, boost visitor numbers and accelerate South Coast tourism growth.
