Restaurants and guesthouses were the biggest beneficiaries of the COP17 conference in Durban during the past twee weeks. The accommodation industry expected to benefit by the tune of R500m, but the acting head of Durban’s strategic projects unit, Sue Bannister, said that it was closer to R1billion. Liquor sales at both restaurants, hotels (including guesthouses, B&B’s, lodges), pubs and bars were reported to be excellent. Restaurants (including coffee shops) provided 495000 meals, while accommodation was fully booked during the 14-day conference with approximately 160000 bed-nights. (Article by Times Live, edited by LiquorWise)

Die Burger berig dat die omstrede konsepvoorstelle oor drankverkope laatnag en op Sondae in die Stellenbosch-omgewing weer bekyk gaan word. Die nuwe DA-beheerde stadsraad van Stellenbosch sal die konsepvoorstelle wat die vorige stadsraad goedgekeur het, ernstig heroorweeg en verwelkom die insette van die gemeenskap daaroor, sê mnr. Conrad Sidego, nuutverkose burgemeester.

Sidego het gister by navraag gesê die stadsraad is baie bewus van die diepe kommer wat voorstelle dat drank nie op Sondae verkoop mag word nie in veral die toerismebedryf veroorsaak.“Ons is deeglik bewus daarvan dat ons ’n toerismedorp in die middel van die wynlande is en hierdie stadsraad sal geen besluit neem wat die dorp, sy beeld of sy inkomste sal skaad nie.

“Daar is geen rede om opgeklits te raak nie – nugtere oorweging sal aan die kwessie gegee word,” het Sidego gesê. Vrese bestaan dat talle restaurante, veral dié op landgoedere, hul deure sal moet sluit as drankverbruik in restaurante in en om Stellenbosch op Sondae verbied word.

’n Plaaslike toerismeorganisasie win trouens reeds regsadvies in oor die kwessie. So ’n “belaglikheid” sou ’n “verleentheid” vir die gebied wees en kan verreikende gevolge hê vir die ekonomie van die gewildste wyngebied van Suid-Afrika, is aan Rapport gesê oor die konsepbesluit.

Die besluit, wat voorlopig geneem is na gelang van die impak van provinsiale wetgewing, sou nie net die verkoop en bedien van wyn op Sondae in restaurante in die dorp en op landgoedere verbied het nie, maar sluit ook ’n verbod op kroeë in om saans ná 23:00 alkohol te verkoop. Die verordening kon in elk geval nie finaal deur die stadsraad aanvaar word voordat die voorgestelde provinsiale konsepwetgewing, die Wes-Kaapse Drankwysigingswetsontwerp, in werking tree nie.

Dié wetsontwerp word tans deur die provinsiale regering hersien. Die aanvaarding van ’n Stellenbosse drank-verordening, soos die vorige stadsraad voorgestel het, sal ’n verlammende invloed op die ekonomie van die gebied hê omdat wyntoerisme 25% van die bruto ekonomiese produk hier uitmaak, sê me. Annareth Bolton, uitvoerende hoof van die toerismeorganisasie Stellenbosch Wynroetes.

Van die land se toprestaurante, wat gereeld die Eat Out-wenlys haal, is in dié gebied geleë.Sondae is van die gewildste kuierdae, sê Bolton. “Dis die dag waarop sowel plaaslike as buitelandse toeriste die wyngebied die graagste besoek om sy kos en wyn te geniet. Dit maak wynplase, restaurante en wynkelders van die grootste werkverskaffers hier.”

Bolton sê Wynroetes is in gesprek met hul regsverteenwoordiger, ’n kenner op die gebied van dranklisensiëring. Volgens mnr. Beyers Truter, eienaar van die landgoed Beyerskloof buite Stellenbosch, sal dit kortsigtig wees om die voorstel van die vorige stadsraad deur te voer en sal dit die restaurant- en toerismemark hier doodmaak.

Johannesburg - All liquor licences and permits in Gauteng will be reviewed, economic development MEC Qedani Mahlangu said on Tuesday. "I believe South Africans deserve better legislation," she told a media briefing on the draft liquor policy in Johannesburg.
"[It will] improve compliance through enhanced enforcement of the liquor legislative and regulatory."

There are 30 000 liquor licences in Gauteng.Mahlangu said her department would also look at discouraging the trading of alcohol on Sundays and religious holidays.
This would address the problem of unlimited access to and consumption of liquor."I'm talking about places like Pick n Pay and Spar or any takeaway place," she said.People would still be able to buy alcohol in restaurants, shebeens and taverns.

Northern Cape MEC, John Block, reacted to speculative comments in newspapers regarding the new Liquor Act (Selected from an article in the Kathu Gazette) I am of the opinion that ill-informed perceptions of this nature should be set straight. Cognisance was taken of the numerous requests for lower licence and other fees and therefore reflected by the final set of Regulations in the form of a 50% reduction across the board of the fees as advertised for public comments. According to Mr Block, it is his intention to introduce an amendment bill in the provincial legislature as a matter of urgency to revert to the general situation that existed before the new Liquor Act came into operation, namely that on-consumption liquor establishments must close at 02:00. This process will however take some time since the provincial legislature operates in accordance with its own rules. All efforts will none the less be made to expedite the process.

The Northern Cape Liquor Act (Act 2 of 2008) came into operation on 1 April 2010. No April fool’s joke, although some liquor licence holders wish it was. It still has to be seen how strictly the Liquor Board will interpret the Act and Regulations. This can be of no comfort to current licence holders, as issues such as rezoning has been strictly enforced in provinces such as Gauteng. Some licence holders have indicated that they may challenge some sections of the Act as being unconstitutional. The main changes that affect licence holders are the following: 1. All liquor licences granted in terms of Section 22(1)(b) of the previous Liquor Act (Act No 27 of 1989) shall remain valid until 31 March 2011; 2. All licence holders must apply to have their existing licences converted to a one of the kind of licences described in Section 16 of the new Liquor Act or a licence nearest in description to their current licence. Conversion is described as having to follow the same process as when applying for a licence for the first time. A complete new application therefore has to be drafted and submitted to the Liquor Board. Each licence holder is liable for all costs incurred in order to convert, which will be the cost of a new application; 3. The trading hours have been limited to 24h00 (12pm). Any liquor sold by 24h00, must be consumed before 00h30 (1.30am); 4. Licensed premises, which are not correctly zoned for the kind of activity being carried on, will have to be rezoned. Landlords and tenants will have to negotiate the cost of such rezoning applications; 5. Licence fees have been increased substantially – a. Application fees will be R500 per application; b. Licence fees (on approval of licence) for the majority of businesses vary between R500 and R1500; c. Annual licence fees between R1500 and 2250; d. The annual licence renewal fee (payable on or before 31 December 2010), is payable in full over and above the application fee for the new licence. 6. The local authority (municipality) must lodge a report detailing the - a. Correct zoning for the premises; b. Health and Safety considerations; c. Any other matter which it may deem necessary. 7. The applicant must state what he/she’s proposed contribution to combating alcohol abuse will be; 8. The application, for a permanent or occasional licence, must be lodged per registered post or by hand at the office of the Liquor Board and not at the magistrate’s court within which jurisdiction the premises is situated. Implications of the new Liquor Act: 1. No licence holder can be certain that their current licence will be successfully converted; 2. The sale of licensed businesses may be negatively affected, as a. buyers will not be certain that the liquor licence in question will be converted; b. the demand for licensed businesses may decline in the short term, resulting in a reduced market value of such businesses; 3. Most taverns will probably fail to convert their licences, as these licences were granted for premises zoned for residential purposes and not commercial purposes; 4. Direct and indirect jobs, created by legally licensed taverns, will be lost and lead to an increase in unemployment; 5. Increased application and annual renewal fees. NOORD KAAP DRANKWET – IN WERKING VANAF 1 APRIL 2010 Ons neem die vrymoedigheid om u in kennis te stel van die inwerkingtreding van die nuwe Noord-Kaap Drankwet op 1 April 2010. Die belangrikste implikasies vir bestaande lisensiehouers, asook besighede wat beplan om aansoek te doen vir ‘n dranklisensie, is : 1. Alle dranklisensies wat kragtens Artikel 22(1)(b) van die vorige Drankwet (Wet No 27 van 1989) goedgekeur is, sal geldig bly tot 31 March 2011; 2. Alle bestaande lisensiehouers moet aansoek doen om hulle lisensies om te skakel na lisensies in terme van Artikel 16 van die nuwe Drankwet; 3. Die omskakeling van lisensies beteken dat dieselfde proses gevolg moet word asof daar vir die eerste keer vir ‘n lisensie aansoek gedoen word. ‘n Volledige nuwe aansoek moet opgestel en by die Drankraad ingedien word. Elke lisensiehouer is aanspreeklik vir alle koste van die omskakeling; 4. Die besigheidsure is beperk tot 24h00 (12nm). Enige drank wat verkoop is teen 24h00, moet teen 00h30 (1.30vm) verbruik word; 5. Gelisensieërde persele wat nie korrek soneer is vir die aktiwiteit wat nou daarop plaasvind nie, sal hersoneer moet word. Grondeienaars en huurders sal moet onderhandel oor die koste van hersoneringsaansoeke; 6. Lisensiefooie is wesenlik verhoog - a. Aansoekfooi per aansoek - R500(voorheen R200); b. Lisensiefooi(met uitreik van lisensie) vir die meeste besighede wissel tussen R500 en R1500; c. Jaarlikse hernuwinsfooie wissel tussen R1500 en 2250; d. Die jaarlikse hernuwingsfooi(betaalbaar voor of op 31 Desember 2010), is ten volle betaalbaar, addisioneel tot die fooi vir die aansoek vir die nuwe lisensie(omskakeling); 7. Die plaaslike owerheid (munisipaliteit) moet ‘n verslag indien waarin die volgende genoem word - a. Korrekte sonering vir die perseel; b. Gesondheid- en veiligheidsoorwegings; c. Enige ander aspek wat nodig geag word. 8. Die applikant moet aandui wat sy/haar bydrae gaan wees tot die bekamping van alkoholmisbruik; 9. Die aansoek, vir ‘n permanente of geleentheidslisensie, moet by die Drankraad se kantoor ingedien word per geregistreerde pos of per hand en nie meer by die landdroskantoor binne wie se jurisdiksie die perseel geleë is nie; Gevolge van die nuwe Drankwet: 1. Geen lisensiehouer kan seker wees dat sy lisensie omgeskakel gaan word nie; 2. Die meerderheid van tavernes gaan waarskynlik misluk om hul lisensies om te skakel, aangesien hul bestaande lisensies toegestaan is op persele wat vir residensiële doeleindes gesoneer was; 3. Werksgeleenthede wat direk en indirek geskep is deur wettig gelisensieërde tavernes, gaan verlore gaan en tot ‘n verhoging in werkloosheid lei; 4. Hoër aansoek- en jaarlikse fooie; 5. Die verkoop van gelisensieërde besighede mag negatief geraak word, want a. Kopers sal nie seker wees dat die aangekoopte besigheid se lisensie omgeskakel gaan word nie; b. Verkooppryse (markwaarde) kan daal, veral oor die kort termyn, omdat die aanvraag na besighede kan daal weens die onsekerheid of die lisensie omgeskakel gaan word.

Martin Hatchuel, says - It is only today, once again, (a day before submissions are due to close) that I’ve become aware of them. I’m pretty horrified by what they’re asking - and you will be too. In fact, you’ll probably think twice about being graded in the future. I know I would Giles Holland-Ramsay (Mamagalie Lodge), in a letter to Martin Hatchuel(shortened by us) “Hi Martin. “Below is a letter written to the accounting firm who have been tasked with laying out new criteria for graded establishments. From my own experience in the industry over the last 5 years, I have noticed that: 95% of my clients are locals, 4% regional, 1% overseas. Of the local travelers over 40% return 2 or more times, resulting in a occupancy rate of approximately 60%. The average length of stay is 2-3 nights. The guest comments reveal that the affordability, privacy and natural setting is what they value most. “10a. Down Pillows. I submit that very few guests have a need for down pillows, in fact over the years we have had more requests for fiber pillows due to the number of guests with allergies. To this end we have replaced all the down pillows with fiber and have since then never had a request for down pillows! “12a. Air-conditioning. The need to conserve energy in SA should be seen as paramount. Further in areas where ESCOM supply is limited or unavailable, it is not possible to run air-conditioning of solar panels. “15a. En suite bathrooms in all rooms. It is not possible to create an en suite bathroom and maintain the minimum floor area where this has not been specified in the original design. Such a stipulation would effectively mean rebuilding the unit. “15a. Minimum room size, in the case of our 4 stars this would be 30 m2. Again this is not possible where the unit has already been built to a previous plan. There are very few rooms in the country of 6x5 meters, as the standard requirement is generally 4x4 or 5x5, these are spacious in themselves? 41a. Heaters and air-conditioning in lounge areas, again a fireplace is sufficient for heating and provides for superior ambience, the stuck record of power requirements plays on! “42a. TV and DSTV, 90% of our guests come to enjoy the peace and quiet. As 2 of our units are set in a nature area, we have declined to put TVs in these units. They operate at an annual occupancy of over 60%, so clearly this is not a requirement from the paying public. “46a. Washing Machine and tub. Once again is this truly required in a self catering unit? Has anyone bothered to research the average length of stay in self catering units? If there is a washing machine why then have an outside wash tub? These are just wasteful and in 99 cases out of 100 are not required. “61a. Housekeeping available 18 hours a day? In a self catering unit this is completely ludicrous. There has obviously been a massive short coming in the research carried out. “My personal feelings are that if these criteria are implemented in their current form, it is likely to result in great expenditure to establishments. I would personally not be able to comply with many of the new requirements, particularly in respect of room sizes etc. In such a case my only option would be to seek legal advice or withdraw from the programme. As a past committee member of our local Magalies Meander, I am convinced that a great deal of our members would find a lot of the criteria unaffordable. I am not sure how much revenue the TGSA extracts from registered establishments, however I would envisage a lot of withdrawals.

A committee has been appointed to review the current Gauteng Liquor Act with a view to evaluate the Act and make suggestions on how to improve it. It is expected that the Act will be amended substantially and may even be replaced by a completely new Act. The committee will have to publish a draft policy framework. The public and all those with an interest in the liquor industry will have the chance to comment on the policy framework. It is expected that the policy framework will be published within the next few months. Once the policy framework has been finalised, the committee can proceed to draft amendments to the current Act or to draft a new Act will be drafted. The proposed amendments/new Act will also have to be published for comment and public participation in due course. We expect changes in the manner in which the annual renewal fee is calculated. Guest houses have complained bitterly in the past of being unfairly treated. Currently, a small B&B pays the same annual renewal fee as any of the largest hotels. Some role players have suggested that the annual turnover of a business be the benchmark to determine the annual renewal fee. This can easily be determined by authorities from financial statements of businesses. If you have any suggestions, we would like to hear from you.

Did you convert your 1989 Liquor Act licence to a 2003 Gauteng Liquor Act licence? The Gauteng Liquor Board has made it clear that it views non-compliance as fatal. This means that licence holders of Gauteng who did not apply to have their 1989 Liquor Act - licences converted by 1 March 2010, will not be able to legally sell liquor on their premises. Many owners of businesses who have paid the annual renewal fee disputes this. They are of the opinion that their licences are at least valid until 31 December 2010. The Liquor Board has not stated its intention with regard to the policing of those licence holders who did not covert and who is still supplying liquor as before. Do you think that non-converted licences should be valid until 31 December 2010? State your case!

The Minister of Trade & Industry, Dr Rob Davies, published the “2010 Soccer World Cup Liquor Policy for comments in Government Gazette 328889 on 18 Januar 2010. The Policy was published in terms of the Second 2010 Fifa World Cup South Africa, Special Measures Act(Act No 12 of 2006). Any person had the opportunity to comment on the Policy until 17 February 2010.

It came to our attention that, as the document stands, all retail liquor outlets( such as restaurants, coffee shops, pubs, bars, hotels) could be asked to pay R50 000 if the soccer matches are broadcasted on their licensed premises. They would also have to pay a percentage of their turnover. The reason is that it would qualify as a Public Viewing Event.

WHAT IS A PUBLIC VIEWING EVENT?

The applicable sections in the Policy are the following(our emphasis) :

Section 13. PUBLIC VIEWING EVENT

13.1 An event is considered a "Public Viewing Event" if [at such a event] broadcastcoverage of the 2010 World Cup Competitions is made available for exhibition [to,]and viewing by, [an audience (whether] members of the general public or otherwise [in any place] other than a private dwelling, including at cinemas, bars, restaurants, stadiums, open spaces, offices, construction sites, oil rigs, water borne vessels, buses, trains, armed services establishments, educational establishments and hospitals.

[The Provincial Liquor Authorities (See attached Schedule 1) wilt be responsible for the issuing of liquor licences for all Public viewing venues, other than FIFA venues,] All public viewing events must be licenced in order to sell liquor. [The licencing of these events resides within the competence of the Provincial Liquor Authorities. AI!set terms and conditions must be in writing and accompany the liquor licence.]

WHAT IS PAYABLE IF ONE WAS TO QUALIFY AS BROADCASTING A PUBLIC VIEWING EVENT?

Section 14. GENERAL PROVISIONS

14.7 2% of turnover to be donated to the National Liquor Authority to run programme oneffects of alcohol abuse

14.8 2% of turnover to be donated to the relevant provincial liquor authorities to run programme on effects of alcohol abuse in relation to the within the fan parks and public viewing areas

Section 15. FEE STRUCTURES

15.4 R50 000.00 public viewing area

CONCLUSION

It is the considered opinion of legal experts that the Policy is poorly drafted, full of spelling mistakes and should be amended. It is important that the business community have certainty about such important legislation, as it impacts directly on their business.

The Minister has promised to clarify the matter soon. We will keep you up to date with progress on the matter.

In the third of a four part series on liquor licensing, Liquorwise - Nationwide Liquor Licensing Specialists - This weeks’ article places the spotlight on the risk of liability of a liquor-related incident on your premises. What to do if one of your guests enjoy your hospitality so much that, in a state of intoxication(whether mild or more) - 1. Material damage is caused to (1) your property and / or (2) property of other guests? 2. Bodily damage is caused to (1) you and/ or (2) your guests? Although more of an insurance than a liquor licensing issue, Liquorwise researched answers to these questions from well-known insurance companies. 1. Material Damage - The owner will be covered for all material damage caused on the premises, whether caused to its own property or the property of guests. 2. Bodily Damage - The owner will not be covered for bodily damage caused to the owner him/herself or to the guests. The owner may not be held liable by a guest(X), if this guest(X) suffers damage caused by another guest. The person(owner or guest) who suffered the damage will be entitled to sue the person who caused the damage. Real Life Example : An intoxicated woman danced on a bar stool and fell through a glass window, suffering facial injuries. Her claim for her bodily injuries was refused, although the material damage(window) was covered by the insurance policy.. What can(should) an owner / manager do? The Liquor Act(Liquorwise summary) determines that – “ the holder of a licence or his or her agent or employee may - (1) refuse to admit any person or to sell liquor to any person; (2) request any person to leave the premises or that part; or (3) remove any person or request any police officer to remove any person who is drunk, violent or disorderly or whose presence on the licensed premises may subject the holder of the licence to prosecution under this Act”. Licence holders should, therefore, be aware of their rights and obligations in terms of the Liquor Act. For more information on the liability of a licence holder, his manager, employees and family, contact Liquorwise Consult Liquorwise – Nationwide Liquor Licensing Specialists With All The Answers To Your Liquor Licence Questions – Focusing on the hospitality industry – Adding value to your business.

Liquorwise

normally finds two scenario’s – 1. The premises is not licensed; 2. The premises is licensed, but not the viewing area or other areas where liquor may be consumed For both, there is one answer. The owner has to obtain a temporary or occasional liquor licence .

What is a temporary liquor licence?

It is a licence most often granted for once off –events, such as the viewing of sports events. It can be obtained for periods of up to seven consecutive days.

What is required?

The main things to have, are - a floor plan(can be hand drawn) of the areas on the premises where liquor will be supplied; - a willing licence holder. If you aren’t a licence holder, you have to approach a licence holder to apply on you behalf. The licence holder remains liable for the enforcement of the conditions of the licence. You would therefore have to satisfy the licence holder that all the usual safety concerns will be or have been addressed. - a short summary of what is planned, addressing safety and security issues

And then?

The application is submitted to the local magistrate, who may approve the application after perusing a report from the local "liquor officer""(DPO). The adage "fail to plan – plan to fail" is very much applicable to liquor licensing. Liquorwise advises businesses to contact them without delay for advice on their liquor licensing plans. A professional application for a liquor licence requires time, effort and expertise – all of which will become in short supply as the World Cup gets approaches!

In the first of a four part series on liquor licensing, Liquorwise - Nationwide Liquor Licensing Specialists - this week places the spotlight some of the more ‘negative’ reasons for acquiring a liquor licence: the ‘positive’ reasons will be discussed in the fourth article, which will be published on the Liquorwise Blog over the next four weeks. Benefits Of A Liquor Licence For Businesses In The Hospitality Industry Liquor licensing might not be a priority for many businesses in the hospitality industry - but those businesses may be acting illegally when it comes selling liquor. This isn’t out of wilful negligence - it’s more likely to be a result of ignorance of the complex legislation that governs the issue. It’s important to remember that the term “sale of liquor” - includes exchanging or keeping, offering, displaying, delivering, supplying or disposing of liquor for sale - or authorising, directing or allowing the sale of liquor. ... And if you’re selling liquor, here are four scenarios you want to avoid: 1. 2010 and beyond : Visitors to the 2010 World Cup will be more insistent on compliancy than most businesses might expect. Guests want to relax knowing that your premises are safe and comfortable. So - increase their levels of enjoyment by serving them the drink they’re after. Don’t be forced to send them away for a drink: they may never come back! 2. Accidents : They happen all the time, and at the most inconvenient of times. And after an accident the authorities – the South African Police, the Fire Department, the Health Inspector – may visit your premises and find that liquor was involved. If you don’t have a liquor licence, you’ll have some uneasy questions to answer. Negative publicity will probably follow, and you - and perhaps even your clients - may be prosecuted. 3. Competitors : Your jealous competitor may report you to the local liquor officer (DPO) - and that DPO must inspect your premises because the law requires him or her to act on every report of illegal behaviour. And if you don’t have a liquor licence, action will have to be taken against you - with unhappy consequences. 4. The SAP - undertakes routine investigations - and it’s not worth being the victim of a surprise visit by the DPO! Consult Liquorwise – Nationwide Liquor Licensing Specialists With All The Answers To Your Liquor Licence Questions - and look out for future articles on the subject in the next three three weeks on our BLOG.

Liquorwise will be publishing a series of four weekly articles on our Blog every Tuesday from 17 November, which will be of benefit to all businesses in the hospitality industry, especially with a view to 2010. The articles will deal with be published as follows : Weeks 1 and 4 ( The 8 major advantages of having a liquor licence), Week 2 ( How to get a liquor licence for a viewing area for sports events (i.e. 2010 soccer) on your premises - keep your guests entertained on your premises and Week 3 ( The liability of a licence holder in the case of (1) customers getting injured or (2) property being damaged by intoxicated guests). Consult Liquorwise – Nationwide Liquor Licensing Specialists With All The Answers To Your Liquor Licence Questions

The due date for the conversion of Gauteng liquor licenses issued under the 1989 Liquor Act, has been extended to 1 March 2010. All licence holders who have not yet applied to convert their licences, are urged to do so without delay. The authorities have indicated that the cut-off date will not be extended again. What do think of the conversion process? Could it have been handled better or in any other way? Are you going to convert? Is the new period sufficient for all licence holders to convert their licences? Do you think the process and cut-off dates should have been given more publicity?

The due date for the conversion of Gauteng liquor licenses issued under the 1989 Liquor Act, 31 August 2009, has passed. License holders who supply liquor, even free of charge, will now be doing so illegally. Many license holders are not aware of the conversion and many others have protested against the high cost of the conversion fee.

DO YOU THINK THE CONVERSION PROCESS AND CUT-OFF DATES SHOULD HAVE BEEN GIVEN MORE PUBLICITY ?

SHOULD AN AMNESTY PERIOD BE GIVEN TO THOSE WHO HAVE NOT CONVERTED?