Tourism banks on loan scheme

With the R200-million COVID-19 tourism relief fund depleted, Tourism Minister Mmamoloko Kubayi-Ngubane has said the sector is banking on the relaxation of the criteria to qualify for the government-guaranteed loan scheme to ease pressure in the sector.

Kubayi-Ngubane said more than 3 000 businesses that applied for the relief funding were left empty-handed because the money ran out.

“With the easing of the qualifying criteria [for the R200-billion scheme], we believe that quite a number of businesses in the sector would be able to be assisted,” the minister said.

So far, the scheme that was announced with fanfare by President Cyril Ramaphosa in April, has been a disappointment, with only R12- billion extended – with many business declined due to the strict criteria attached to the loans.

However, the government has introduced some changes in how the loans are administered. A significant change is that small businesses can apply for loans of up to R100-million regardless of their annual turnover.

The local tourism sector came to a halt at the end of March when strict lockdown measures were imposed, resulting in the closure of many
businesses. The government last week adjusted regulations to minimise the impact of COVID-19 on the sector.

CEO of SANParks Fundisile Mketeni said tour operators will now be allowed to conduct guided tours in open safari vehicles subject to directives that are still to be communicated and gazetted.

“We appreciate that after four months of confinement, the public is keen to engage with nature, however, we are obligated to ensure that the opening of our national parks for accommodation is done under the strictest health protocols to safeguard both our staff and guests.”

Latest News