Knysna municipality disputes R16m festival loss claim

The Greater Knysna Business Chamber has suffered a setback after its R16 million compensation claim was rejected by Knysna Municipality. The claim followed the cancellation of the Oakhill Waterfront Chukka Festival in early February, a major water-polo tournament called off due to concerns over unsafe marina water during the region’s broader water-quality crisis.

The chamber estimated that approximately 4,000 visitors would have attended the event, each spending about R4,000, resulting in projected economic activity of roughly R16 million for the local economy. Business leaders argued that accommodation providers, restaurants and retailers lost critical peak-season revenue as a result of the cancellation.

Municipal spokesperson Christopher Bezuidenhout disputed the projected losses, questioning the chamber’s attendance and spending estimates. He maintained that recreational water quality in the area meets required standards and said the municipality has taken steps to strengthen infrastructure, including the installation of 1,000 new water meters aimed at improving system management and monitoring.

While tensions remain between local business stakeholders and municipal authorities, the festival has been rescheduled for 2027. Organisers hope that by then infrastructure upgrades and improved public confidence in water safety will allow the event to return without controversy.