Black owned tourism enterprises encouraged to apply for the Tourism Transformation Fund
April 03, 2019
Gauteng, South Africa: All majority black-owned tourism enterprises interested in accessing funding to establish a new tourism business or expand an existing tourism business, are encouraged to apply for the Tourism Transformation Fund (TTF) and the Green Tourism Incentive Programme (GTIP) during the application period from 1 April to 30 June 2019.
The Fund is a dedicated capital investment mechanism to drive transformation in the tourism sector in a more direct and impactful manner.
It aims to assist small and micro black-owned tourism enterprises to expand and grow with the goal to create a new generation of black-owned, youth, women and community based tourism industrialists.
The TTF was developed in collaboration with the National Empowerment Fund (NEF) and all applications and approvals are managed by the NEF.
The Fund provides a combination of grant funding, debt financing and equity contributions to facilitate capital investment in the tourism sector by prospective black investors. The grant funding portion is used to reduce the approved loan finance and/or equity contribution by the NEF for tourism projects. This component is capped at 30% of the total funding required or R5 million (whichever is greater) per applicant.
Green Tourism Incentive Programme
The GTIP- a resource efficiency incentive with the objective to encourage private sector tourism enterprises to move towards the sustainable management of water and energy resources whilst adhering to responsible tourism practices.
Through grant funding, the programme assists private sector tourism enterprises in reducing the cost of investing in more energy and water efficient operations, while increasing their competitiveness and profitability in the long term.
According to the Department of Tourism, "to date, 308 enterprises have so far applied for funding through this initiative."
The fourth window for applications is open from 1 April until 30 June 2019
The GTIP broadly offers the following to qualifying tourism enterprises:
• 90% of the cost for a new resource-efficiency audit or the full cost for reviewing an existing resource efficiency audit by the National Cleaner Production Centre of South Africa; and
• grant funding to qualifying small and micro enterprises on a sliding scale from 30% to 90% of the total cost of implementing qualifying resource efficiency interventions, which is capped at R 1 million.