SWAKOPMUND – The Swakopmund council has assisted local businesses by waiving thousands in rental fees as a way to assist them in rebuilding their businesses that were brought to their knees by Covid-19.
These businesses are in the tourism and hospitality industry, and have been renting operating space from the Swakopmund municipality.
The establishments include Tiger Reef and the Lighthouse restaurant, which form part of the Lighthouse Group, as well as the Swakopmund Paintball Centre and Adventure Park.
Most of the businesses at the coast suffered massive losses due to the continuous lockdowns, especially those that were operating in the tourism and hospitality industry.
As a result, business owners were struggling to meet financial commitments.
Chief executive officer of the Swakopmund municipality Archie Benjamin on Thursday told New Era that the council was approached by at least four local businesses which were struggling due to Covid-19.
“Most of the town’s businesses were closed for more than eight months, and thus could not generate money. Their employees could not get paid, and were chased out of their rental spaces, while the owners struggled to meet their financial commitments, including council rental fees as well as rates and taxes,” he explained.
Benjamin said the council resolved after deliberations to waive some fees as a measure to bring relief for their tenants, and also to help them rebuild their businesses without having an extra burden.
He added that the decision was made based on merit.
According to council documents, council waived a total of eight months’ rental fees.
“However, council will not consider any application for relief for the paying of rates and taxes and service charges,” the council resolution of 28 October 2021 reads
According to council documents, Quinton Liebenberg from the Lighthouse Group that includes Tiger Reef and the Lighthouse restaurant, requested relief on 20 October last year from the council. Liebenberg owed the council at least N$425 000 in December last year as they operate on a takeaway basis, and hardly generated enough income.
Liebenberg told New Era that the gesture by the council will go a long way and is appreciated by the business community.
“The municipality really considered the town’s business community, and have their people at heart. They, apart from waiving the fees, also offered us a payment plan to settle the remaining amounts. We really appreciate it. The new council is really awesome,” he said yesterday.
Pieter von Ginkel, who operates the Paintball Centre and Adventure Park, also appealed for assistance from the council last year. He owed N$58 000 by August last year.
“I have paid my rent every month for the last 21 years to council, but since we were in lockdown, it has been difficult to make ends meet,” he wrote to the council in August last year.
He also told New Era that his business ran out of funds.
“That’s why I approached the council. They really extended their hands to us. It really meant a lot for the local business community, especially in these trying times.