Tourism Relief Funding could bring relief to Travel Agents

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The Department of Tourism has made an additional R200 million available to assist SMMEs in the tourism and hospitality sector who are under particular stress due to the new travel restrictions.

The fund will be administered to benefit SMMEs in all the 9 provinces and various tourism sub-sectors. Necessarily and rightly there will be a degree of bias towards rural areas, townships, women, young people and people with disabilities.

In line with our Amended Codes on BBB-EE the following categories will apply:

Accommodation: Hotels; Resort properties and Bed and Breakfast (B&B’s)

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.

There will also be an equitable balance between businesses that are in the tourism incentive programme of the Department of Tourism and businesses that are not benefiting from such programmes through a transparent application process, and the criteria outlined above.

Application Qualifying Criteria

  • Must be a formally registered business with 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 outline in the scope of application (suppliers and intermediaries are not eligible).
  • 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.
  • Must submit statements of financial position; over 12 months’ bank statement, balance sheet, income statements, cash flow statements.
  • Indicate the intended use of the resources.

Delivery Mechanisms

  • The relief will be distributed in a spatially equitable manner to ensure that all provinces benefit.
  • At least 70% of beneficiaries will be businesses that are Black owned.
  • At least 50% of beneficiaries will be businesses that are women owned.
  • At least 30% of beneficiaries will be businesses that are youth owned.
  • At least 4% of beneficiaries will be businesses that are owned by people with disabilities.

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The impact of COVID-19 on the travel industry is unprecedented and unpredictable. The nature of the content that is being shared on the ASATA coronavirus microsite is therefore constantly changing. Please check the date of the post to ascertain its recency.
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