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Cape Point restaurant, shop and funicular closed until provincial borders reopen

11 August 2020 5:49 PM
Tags:
Cape Point
Insurance
Insurance claim
santam
Covid-19 business interuption claim

The funicular, shop and restaurant at Cape Point remain closed until government approves the reopening of interpovincial travel.

This is according to the Thebe Tourism Group, the company which runs the concession facilities at Cape Point on behalf of SANParks.

The Cape Point restaurant shop and funicular are on their knees after the group's Covid-19 business interruption claim was rejected by insurer Santam.

Cobus du Plessis, the group financial manager at Thebe Tourism Group says the facilities cannot afford to reopen under the current circumstances.

He says 75% of their year-round business comes from international tourists, leaving the tourism group - which employs 35 people - in a dire financial situation.

We're looking to open if interprovincial travel can open up.

Cobus du Plessis, Group Financial Manager - Thebe Tourism Group

At this stage, there's not enough numbers in the Western Cape alone to justify incurring costs at this stage.

Cobus du Plessis, Group Financial Manager - Thebe Tourism Group
The Cape Point's 'Flying Dutchman' funicular. Picture: www.capepoint.co.za

Du Plessis says the tourism group's Covid-19 insurance claim was rejected by Santam a while back.

Two weeks ago, the insurer announced that it will pay up to R1 billion to its business interruption clients whose claims have been rejected.

The Thebe Tourism Group and dozens of other companies are awaiting the outcome of Santam's business interruption claims case that is due to be heard in the Western Cape High Court on 1 September.

We only got this notice of this potential relief payment in the last few days through our brokers. That's only come through recently after no word from our insurer Santam.

Cobus du Plessis, Group Financial Manager - Thebe Tourism Group

I was initially quite positive, speaking to our brokers and we put in our claim thinking that things would go our way.

Cobus du Plessis, Group Financial Manager - Thebe Tourism Group

After quite a bit of waiting, they eventually came back to us saying the lockdown is not covered in our policy, even though it read that way to us.

Cobus du Plessis, Group Financial Manager - Thebe Tourism Group

We tried to keep most of the staff around. With zero income since the end of March, and only carrying a certain amount of working capital, it creates a bit of a tough situation for us.

Cobus du Plessis, Group Financial Manager - Thebe Tourism Group

Thebe Tourism Group has successfully claimed from the Unemployment Insurance Fund’s (UIF’s) Covid-19 Temporary Employee Relief Scheme (Ters) funding to help pay staff, but Du Plessis says the payments alone aren't enough to keep afloat.

Listen to the discussion on Afternoon Drive with John Maytham:


11 August 2020 5:49 PM
Tags:
Cape Point
Insurance
Insurance claim
santam
Covid-19 business interuption claim

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