The Department of Tourism calls on eligible enterprises to
apply for the Tourism Transformation Fund (TTF), and the Green Tourism
Incentive Programme (GTIP) from today, 1 October 2021.
Tourism Transformation Fund (TTF)
The TTF is a dedicated capital investment mechanism that was
developed to drive transformation in the sector.
It assists small and micro black-owned tourism enterprises
to expand and grow, creating a new generation of black-owned tourism
enterprises. The programme is implemented and administered by the National Empowerment
Fund (NEF) and all applications and approvals are managed by the NEF.
The TTF provides a combination of grant funding from the
Department and debt financing or equity contributions from the National
Empowerment Fund (NEF) to facilitate capital investment in the tourism sector
by prospective black investors.
The grant funding portion from the Department is used to
reduce the approved loan finance and/or equity contribution by the NEF for
tourism projects. The grant component is capped at 50% of the total funding
approved by the NEF up to a maximum of R5 million per applicant.
Green Tourism Incentive Programme (GTIP)
The GTIP is a resource efficiency grant funding mechanism
that assists private sector tourism enterprises to reduce the cost of investing
in energy and water efficient operations, thus enabling them to adhere to
responsible tourism practices whilst reducing their cost of operations. The
programme is implemented and administered by the Industrial Development
Corporation (IDC) on behalf of the department and all applications and
approvals are managed by the IDC.
The GTIP broadly offers the following to qualifying tourism
enterprises:
the full cost for a new resource-efficiency audit or the
review of an existing resource efficiency audit; and grant funding to
qualifying small and micro enterprises on a sliding scale from 50% to 90% of
the total cost of implementing an approved water and energy resource efficiency
intervention, capped at R1 million.
The TTF and GTIP initiatives are aligned to the objectives
of the National Tourism Sector Strategy (NTSS) that elevate inclusive growth
and transformation as fundamental drivers of the tourism sector.
As the tourism sector progressively works towards recovery,
Minister of Tourism Lindiwe Sisulu believes that there will be a greater demand
for new and diverse tourism offerings, especially those that promote conserving
our scarce natural resources. "As we rebuild our sector, we need to be
ready to offer tourists a variety of product offerings that showcase our
country's unique natural and historical heritage." "Through the
implementation of the TTF and the GTIP, we envision creating a sector that is
inclusive and sustainable, creating a pathway for new entrants to implement
innovative businesses that make tourism thrive.
I encourage all enterprises, especially youth and women
owned businesses, to apply for both initiatives and contribute to transforming
our sector and upholding responsible tourism practices," said Minister
Sisulu. The department's funding initiatives have enjoyed success in supporting
enterprises within the tourism sector. Nare Leisure Investment (Pty) Ltd is one
of a number of establishments that have benefited from the TTF.
The company has thus far received support to the tune of
R11.6 million, with an initial 30% grant funding contribution towards the
blended funding sourced from the Department of Tourism through a partnership
with the National Empowerment Fund (NEF).
The funds were used to build a four-star Boutique Hotel in
Kimberley in the Northern Cape Province. The 100% black woman-owned business
was able to create 56 temporary jobs during construction, and 16 permanent jobs
post construction. Eligible tourism enterprises are urged to submit fully
completed application forms in accordance with the requirements of the TTF and
GTIP programmes.
Please note that incomplete applications will not be
considered.
Tourism Transformation Fund (TTF)
TTF applicants should submit their application forms and
supporting documents directly to the NEF, who will assess applications for
commercial viability and TTF eligibility.
Information, application forms and guidelines are available
on the NEF website at
https://www.nefcorp.co.za/products-services/tourismtransformation-fund/ and
enquiries can be directed to tourism@nefcorp.co.za
Green Tourism Incentive Programme (GTIP)
GTIP applicants should submit their application forms and
supporting documents directly to the IDC, who will assess the applications.
Information, application forms and guidelines are available
on the IDC website at https://www.idc.co.za/green-tourism-incentive-programme/
and enquiries can be directed to gtip@idc.co.za