 Fred
Arijs, Managing Director of Amazing Estates, is very much in touch
with the overall European/ South African scenario, and had the
following to say in a recent interview.
“South Africa is not currently a destination for mass tourism,
primarily because your average European does not find it cheap here.
Hotel costs and air travel are expensive for them, with perhaps only
the cost of food being relatively cheap. Those Europeans who do
travel here are professional people from the higher income groups,
the rest travel within Europe to destinations such as Turkey and
Greece which are more affordable for them.”
“There is much talk about overseas buyers, but in the Garden Route
this makes up a very small percentage in the greater scheme of
things, with those that do move permanently to South Africa rather
choosing the exclusive suburbs of Cape Town due to its proximity to
an international airport, as well as its wealth of city motivated
infrastructure. The Garden Route has excellent healthcare
facilities, but the proximity and speed of emergency treatment needs
to be looked at. Combined with the lack of European or SA city
equivalent shopping facilities and the unavailability of an array of
products, it will take some time for the Garden Route to develop
into a primary retirement destination for Europeans.”
“What are major positives for South Africa are the perceptions of
lessening crime, South Africans seem to feel more unsafe than any
visiting Europeans, as well the ever growing credibility of South
Africa as a developing nation. Whether you like President Mbeki’s
stance on certain issues or not, many Europeans admire him for his
policies of non-conflict, the Zimbabwe situation included, as well
as for the ever strengthening overall image of South Africa, with
visitors experiencing South Africa as globally portrayed and
marketed. The ongoing exposure of corruption in such a transparent
manner also goes to show that the system is working, and combined
with total freedom of speech is scoring major points with overseas’
observers.”
“One major concern is the lack of potential housing for the key
workforces of Garden Route towns, as property prices rise and become
more and more unaffordable for the majority. From my perspective
Government needs to link up with the private sector, purchase areas
of non-fertile agricultural land and put up some affordable housing.
To also support such an initiative the banks should offer fixed
interest rates from five to twenty year terms, as is the case in
Europe, bringing the costs of bonds down (less administration), as
well as allowing families to plan for the longer term.”
“Coupled with a potential reduction in VAT from 14% to 10% for
building-related items, as well as a further lowering of interest
rates, the building market for affordable housing will be greatly
stimulated. At the same time there needs to be more transparency in
actual building costs to avoid the addition of unnecessary ‘fat’
which is all too often hidden, putting the construction of a new
home out of reach.”
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