The Department has made R200 million available to assist SMMEs in the tourism and hospitality sector who are under particular stress due to the restrictions placed on travel.
The Department has specified that funding is capped at R50,000 for each individual entity who is awarded funding through this scheme.
What type of businesses qualify for assistance?
Travel agents and tour operators qualify. Here is the full list of businesses mentioned in the formal statement.
- Accommodation: Hotels, resort properties and B&Bs.
- Hospitality and Related Services: Restaurants (not attached to hotels), conference (not attached to hotels), professional catering, attractions.
- Travel and Related Services: Tour operators, travel agents, tourist guides, car rental companies and coach operators.
From the rest of the statement, it looks like the fund is available for businesses who fall under the Tourism B-BBEE Sector Code. The full list is in section 9.
What are the other criteria?
The business must also meet the following criteria:
- must be a formally registered business with the Companies and Intellectual Property Commission (CIPC),
- turnover must not exceed R2.5 million per year,
- must have a valid tax clearance certificate,
- guaranteed employment for a minimum number of staff for a period of 3 months,
- proof of minimum wage compliance,
- must provide proof of UIF registration for employees employed by the business,
- be an existing tourism-specific establishment as outlined in the scope of application (suppliers and intermediaries are not eligible),
We are not sure what the Department of Tourism meant by this. We can only assume that they are referring to the scope of application section in the Tourism B-BBEE Sector Code. Don’t worry too much about this, travel agents are covered.
- must be in existence for at least one business financial year,
- prove that the relief is required as a result of the impact of COVID-19,
This should not be difficult given the travel restrictions. We think that what they mean is that the business must otherwise have been in good financial health.
- must submit statements of financial position, including over 12 months’ bank statements, balance sheet, income statements, cash flow statements,
- indicate the intended use of the resources.