New Hotel Tv Fee Could Burn Holiday Budgets

South Africa's hotel and hospitality industry could soon be forking out even more cash, thanks to an unexpected new licensing fee - and its consumers who will likely end up paying the price.

The Federated Hospitality Association of Southern Africa FEDHASA has launched a legal battle against the South African Music Rights Organisation SAMRO, accusing it of unfairly imposing an extra charge on every TV inside hotel rooms, guesthouses, and even some restaurants, as Daily Investor has reported.

The controversial new Diffusion and Distribution Services DDS fee demands an annual payment for each television set available to guests, with charges ranging anywhere from just under R100 to R133.16 per TV, excluding VAT.

FEDHASA national chairperson Rosemary Anderson told Daily Investor that the fee blindsided the industry, which has faithfully paid licensing costs for background music in public areas such as restaurants, lobbies, and conference rooms for decades.

'No new legislation has been passed to justify this charge,' Anderson said, stressing that hotels and guesthouses are not receiving any additional services from SAMRO in return for the extra billing.