IDC-supported Club Med Tinley resort opens in KwaZulu-Natal
The Club Med South Africa Beach and Safari resort at Tinley Manor Beach, on the KwaZulu-Natal north coast, is one of the largest tourism and hospitality investments undertaken in the province and welcomed its first guests in July.
The resort was developed and is operated by project company Tinley Leisure, which was established for the development.
State-owned financier the Industrial Development Corporation (IDC) is a shareholder and funder of Tinley, alongside African Bank, the Collins Consortium, the Tinley Leisure Women Investment Group (TLWI) and Trevally Group. Club Med is the global hospitality brand and operator.
As part of the transaction structure, the IDC has led the establishment of a community trust to enable participation by communities living in the areas in which the Club Med resort and the game reserve resort are located.
The IDC provided R782-million for the development of the Club Med resort and game lodge, comprising a 26% equity stake and loan funding. The overall development represents an investment of about R2-billion to R2.5-billion.
“The opening of this resort demonstrates what is possible when development finance is used to unlock large-scale tourism infrastructure.
“Our participation in Tinley Leisure was to catalyse construction activity and create durable hospitality jobs and anchoring long-term economic activity on the KwaZulu-Natal north coast in a sector that remains one of South Africa's most labour-absorbing,” says IDC CEO Mmakgoshi Lekhethe.
“Tourism is a priority sector for the IDC because of its ability to draw investment into regions outside traditional economic centres.
“Working alongside our co-funders and the Club Med team, we have helped convert international investor interest into a completed, operating asset that will serve both domestic and international travellers,” says IDC agro-industries and services sectors divisional executive Bongani Miya.
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