The delays have caused severe damage to the local tourism and economic development of the small town that had been declared a UNESCO World Heritage Site in 2004.
The Royal Hotel has now been closed for a number of years due to delays in finding a suitable bidder to operate the establishment.
The state-owned Mpumalanga Regional Training Trust (MRTT) managed the hotel from 2012, and it worked well initially. However, financial losses exacerbated by Covid-19 brought the establishment to the brink of closure.
In September 2022, private operator Kruger on Sabie took over the hotel’s operation after the MRTT’s lease ended. It initially absorbed all 50 of the hotel employees, but it soon became clear that it could not afford this and tried to introduce a shift-work system. This led to a dispute, and Kruger on Sabie was forced to vacate the premises until the dispute was resolved. It has not been resolved to date.
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“As far back as 2016, the DA has been raising concerns in the Provincial Legislature about stalled administrative backlogs, red tape, failed previous tenant agreements, and repeated tender re-advertisements by the Mpumalanga Department of Public Works, Roads and Transport,” says Teboho Sekaledi, DA spokesperson on Public Works, Roads and Transport.
“This has left many people jobless, while the province has the third-highest rate of unemployment (48,3%), after North West and the Eastern Cape provinces,” he says.
In a progress report submitted to the Portfolio Committee on Public Works, Roads and Transport earlier this month, the department reported that the bids received for the operationalisation of the Royal Hotel had not been compliant to the advertised tender, and the bid-adjudication committee recommended that the tender be re-advertised.
“The bids for leasing of properties at Pilgrim’s Rest were previously advertised and subjected to an evaluation process,” says the department’s spokesperson, Bongani Dhlamini.
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“The evaluation found that the bids were non-responsive due to various non-compliance issues with the requirements of the bid, including failure to submit required documentation, and incomplete or improperly completed bid documents,” Dhlamini says.
“As a result, the initial procurement process could not be concluded and the department took the necessary steps to ensure that the procurement requirement is in accordance with the prescripts.
“The leasing requirements have since been re-advertised, providing prospective service providers with another opportunity to submit bids in accordance with the requirements. Bids have been received and the procurement process is currently at the evaluation stage.”
He says it is expected that the new operator will take over the hotel in October and the department will continue to monitor the process to ensure that it is concluded fairly, transparently and in compliance with all requirements.
The department has also acknowledged that due to the status of the town as a heritage and tourist-attraction site, there is a high shortage of accommodation for tourists visiting the area, because of the Royal Hotel Pilgrim’s Rest’s closure.
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“Mpumalanga Tourism cannot afford to lose this hotel,” says Sekaledi. “The town of Pilgrim’s Rest and the Royal Hotel Pilgrim’s Rest are part of Mpumalanga’s heritage. This historic 131-year-old hotel draws thousands of tourists to Pilgrim’s Rest each year, and the province cannot afford to let it decline, especially with unemployment as high as it is.
“The Mpumalanga Provincial Government needs to conserve Pilgrim’s Rest as a heritage site. Heritage sites promote a culture of learning the history of a town and its people, as it draws tourists from all walks of life. National Heritage sites also promote economic development through tourism,” he concluded.
