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To: goldsnow who wrote (3993)12/8/1997 9:08:00 PM
From: goldsnow  Respond to of 116753
 
Hotel closure latest morale blow for Johannesburg
11:36 a.m. Dec 08, 1997 Eastern
By Richard Meares

JOHANNESBURG, Dec 8 (Reuters) - In the latest blow to morale in South
Africa's tarnished city of gold, crime-plagued Johannesburg's most
famous five-star hotel is all but closing, and is pinning its hopes on a
gambling licence to save the day.

The Carlton Hotel, now a modern skyscraper but with a far longer history
linked to the prosperity born from the city's 19th century gold rush,
closed all its bedrooms in the main hotel at the end of last week,
managers said on Monday.

That leaves just 63 rooms open in a nearby annex out of the original 600
rooms, a result of plummeting trade as few visitors these days dare to
venture into the heart of South Africa's industrial capital.

Fears of rampant street crime are mostly to blame for the steady exodus
over the last decade of shops, offices, hotels, theatres and restaurants
to the malls of the more affluent suburbs.

However, the muscle of South Africa's economy -- the banks, insurance
houses and mining firms such as Anglo American Corp of South Africa Ltd
-- say they are committed to the city centre and will stay put.

The drain has also hit the 50-storey Carlton Tower next door to the
hotel, said to be the tallest building in Africa and bang in the middle
of the grid of streets, which is now virtually deserted at night.

The tower now stands about half-empty and will be severely hit when a
major accounting firm pulls out next year to a new headquarters in the
suburbs, officials said.

Johannesburg city council and local businesses have launched numerous
initiatives to reclaim the city centre which has earned a reputation for
daylight muggings, robberies and general grime.

City officials say things are getting better but they are having a hard
time convincing residents, some of whom see downtown as a no-go area.
The move out is continuing.

Tom Molinar, business development manager for the Three Cities group
that runs the Carlton, said hopes were being pinned on an application
for a licence to open the first casino in Johannesburg.

He said the 600 million rand ($123 million) proposal would include a
conference centre, bolstered patrols and other security measures to make
the area safe, and the complete reopening of the hotel for its new
guests.

The licences will be decided early next year.

''I am very confident, we have a compelling case and a plan that will
help revitalise the city,'' Molinar said.

''The survival of the Carlton is crucial to the city of Johannesburg and
our conference centre is crucial to putting Johannesburg back on the map
as a destination city.''

($-4.87 rand) newsroom+reuters.co.za))

Copyright 1997 Reuters Limited. All rights reserved