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Financial assistance for tourism-related businesses announced

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The Department of Tourism has announced a R200 million package of measures to assist SMMEs in the sector affected by Covid-19. In a statement issued this week Minister of Tourism Mmamoloko Kubayi-Ngubane, outlined the qualifying criteria for assistance. In general, they must have annual turnover less than R2.5 million, and most funding will be directed to rural and black-owned businesses. Businesses that can apply for assistance include:

  • 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. More information can be obtained at www.tourism.gov.za.

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.