Tsogo Sun to build desalination plant to supply its Cape Town hotels
Tsogo Sun 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 water shortage across the Cape region means supplies will cut off completely with residents needing to collect a daily allowance from water tankers around the city.
‘Day Zero’, as it has become known, was forecast to happen as soon as April but efforts by farmers and businesses have extended the deadline to June.
Tsogo Sun says its alternative source should be in operation for properties including the five-star Westin within a month 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 the taps to residential suburbs.
“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 R40-billion, 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.
Tsogo shares rose 1.5% on Wednesday to 24.63 rand, bringing the owner of South African casinos including Gold Reef City and Garden Route into positive territory for the year. That values the company at R28.3-billion.