Johannesburg- As the country concluded its 2021 Tourism Month campaign, Lindiwe Sisulu, the Minister of Tourism, on Friday hosted a virtual stakeholder engagement forum that created a platform for dialogue on accelerating the recovery efforts in the sector.
During the discussions, the minister received a synopsis of the impact, challenges, and proposed collaborative interventions from industry and stakeholders representing the aviation, hospitality, restaurant, food and beverage, and service operators.
Also represented in the virtual forum were the tour guides and travel agents, as well as the events and exhibitions industries, among others.
The forum heard that tourism expenditure and contribution to gross domestic product and the number of jobs supported by the sector remains significant with its value chain cascading through many sectors. But due to the Covid-19 pandemic, the local and global tourism sector finds itself in a state of flux.
“While the sector continues to operate within the parameters of the ‘new normal, it remains important to periodically take stock of the impact of the ongoing pandemic,” Sisulu told the stakeholder engagement forum.
“By embracing the successes and addressing the challenges, we are able to chart the way forward. Effective monitoring and evaluation will therefore inform our decisions on the way forward.”
Through honest and candid discussions, the platform enabled Sisulu to gauge a better understanding of the challenges affecting the industry, as well as the views on recovery plans.
Thanking the stakeholders for the opportunity to deliberate on key issues that require interventions to keep the sector afloat, the minister said: “I remain committed to more engagements and will create a platform for continuous discussion through the establishment of a ‘Recovery War Room’ in the form of a consultative platform and a think-tank for sharing ideas and solutions, as well as remobilising all our resources and networks towards a social compact for recovery that is government-led, industry-driven and inclusive of our communities.”
The tourism sector remains a significant economic pillar that has demonstrated the resilience and capacity to rebound. And as the sector works towards recovery, it is becoming evident that there will be greater demand for new and diverse offerings.
Funding opens for black-owned micro enterprises
Setting the recovery plan in motion on Friday, Sisulu called on the youth, women and people living with disabilities to apply for the Tourism Transformation Fund (TTF), as well as the Green Tourism Incentive Programme (GTIP) offerings.
The funding applications opened on Friday.
“The funds are geared to assist small and micro black-owned tourism enterprises to expand and grow, creating a new generation of black-owned tourism enterprises and, importantly, for them to install smart technology to manage the ecological footprint of their operations through energy and water efficiency programmes,” said Sisulu.
“These funding mechanisms are aligned to the objectives of elevating inclusive growth and transformation as fundamental drivers of the tourism sector.”
The TTF provides a combination of grant funding capped at 50% of the total funding from the department and debt financing or equity contributions from the National Empowerment Fund (NEF).
The fund is limited to a maximum of R5-million per eligible applicant towards capital investments for both greenfield and expansion to drive transformation in the sector.
“As we continue to contribute to global efforts to reduce the impact of our business on the environment through the GTIP, we believe it will go a long way in driving responsible tourism by supporting enterprises to reduce the cost in energy and water, with grant funding to qualifying small and micro enterprises on sliding of up to 90% of the total cost of implementing the water and energy resource efficiency interventions capped at R1-million.
“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.
She added: “I encourage all enterprises, especially youth- and women-owned businesses, to apply for both initiatives and work with government to contribute towards transforming our sector and upholding responsible tourism practices.”
Following the waiver of the 2020/2021 grading fees as part of the sectoral relief measures, Sisulu is expected to announce soon more relaxation of the Star grading fees for the 2021/2022 financial period.
“As we continue to contribute to global efforts to reduce the impact of our business on the environment through the GTIP, we believe it will go a long way in driving responsible tourism by supporting enterprises to reduce the cost in energy and water. This grant funding, capped at R1-million per application, is on offer to qualifying small and micro enterprises on sliding of scale up to 90% of the total cost for implementing the water and energy resource efficiency interventions.”
APPLICATION PROCESS
TTF applicants should submit application forms and supporting documents to the NEF, which will assess applications for commercial viability and TTF eligibility. Information, application forms and guidelines are available on the NEF website, www.nefcorp.co.za.
Enquiries can be directed to tourism@nefcorp.co.za.
GTIP applicants should submit application forms and supporting documents to the IDC for assessment. Information, application forms and guidelines are available on the IDC website, www.idc.co.za, and enquiries can be sent to gtip@idc.co.za.
VIEWS FROM SOME OF THE STAKEHOLDERS
Lerato Sekgobela: Limpopo Women in Tourism and Discover Limpopo Magazine: Women in villages face challenges with digital transformation. How will the minister address these challenges?
Comet Motimela: How the department is helping people from the villages other than to hold virtual engagements that only focus on discussions? People from the villages don’t even have access to these virtual engagements due to a lack of gadgets and data to connect online.
Paul Vos: We’ve developed a market access package for SMMEs (small, medium and micro enterprises) and we’re working with various provincial and local tourism authorities on this. We’d like to take our solutions to a broader audience, specifically in the emerging sectors of the economy. I can be contacted on sa@GoSeeDo.co.za, should anyone require further details.
Ency Litsoane – CEO and co-founder of Therato Guest House in Bothasig: For five years I have been trying to expand my guest house with no success. No one trusts us with the funding as they claim we’re a high risk. This is frustrating. How can you help us?
Fayrouz Holliday – Halaal Hopper Travel & Taste Experiences: A huge untapped market, Halaal Tourism needs to be focused on as it has more than $280-billion (R4 178-trillion) spend. Instead of waiting for other countries to take South Africa off their red lists, we need to focus more on who is readily willing to spend the money. Reach us on: www.halaalhopper.co.za
Sthembile Mhlophe: It will be great for the minister to also look at capacity-building issues through skills training of small tourism role players who cannot afford to train their staff.
Taubie Motlhabane: I would appreciate being invited to the War Room, so that I can share the capacity-management tool that we, as the Cape Town International Convention Centre, have developed to demonstrated how venues and the business events sector can host events, conferences and exhibitions safely within the Covid regulations.
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