The City of Cape Town is offering guest houses and bed and breakfast establishments (B&Bs) an option of applying to change their property classification if they need to as a result of the coronavirus (Covid-19) impact which in some cases could cut rates bills in half.
The hospitality industry has been severely affected by Covid-19 which has claimed 54 lives in South Africa.
Guest houses and bed and breakfast establishments that want to keep operating have the option of offering accommodation as an essential service.
According to the regulations underpinning the national state of disaster, “accommodation used for persons rendering services, quarantine, isolation and the lockdown” are defined as essential services.
Within this context, the City is supporting the Western Cape Government (WCG) in its quest to identify willing partners in the hospitality industry to offer accommodation for front-line health care workers or persons who need to be isolated.
In most cases, the individuals being accommodated will pay for these services, but it is also possible that the WCG or a private sector partner will pay up to the recommended daily rate of R500 per person.
The City says that that the property rating category used for business purposes will apply should an establishment take up this offer and more than 40% of the bedrooms are made available for occupation.
To apply for the reclassification of property category: Please complete the Rates Classification Form together with the Data Collection Form and submit it to Valuations.RCC@capetown.gov.za
Mayoral committee member for finance and deputy mayor, Ian Neilson, said: “We must always be careful that the decisions we take today and the impact that it has on rates and tariff income does not place an unnecessarily high burden on our residents and businesses in the future.”
Businesses which want to provide accommodation for essential services and isolation cases must email email@example.com for further information.