Tourism Minister Derek Hanekom and Department of Toursim incentive programme chief director Bernhard Meyer
Photo by: Megan van Wyngaardt
With more than one-billion global tourists, South Africa’s Department of Tourism on Tuesday launched a Tourism Incentive Programme (TIP) to ensure the country attracted the lion’s share of tourists.
Speaking to delegates in Johannesburg, Tourism Minister Derek Hanekom said the R600-million TIP would assist tourism establishments become graded and seek new markets for their products, while assisting in the retrofitting of key tourist attraction with renewable-energy technologies.
The R600-million would be spent over government’s existing three-year medium-term expenditure framework period, but Hanekom noted that the department hoped to grow this budget in years to come.
“We are marketing what we have in a very competitive environment . . .[through] enhancing our marketing efforts but, at the same time, [continuously improving] the destination and the product [that the country] has to offer,” he noted.
The tourism industry, which Hanekom said had the ability to grow export earnings and stimulate small, medium-sized and microenterprises (SMMEs), was highlighted in both the New Growth Path and National Development Plan as a catalyst for creating jobs, alleviating poverty and eliminating inequality.
“The tourism sector has performed very well in South Africa. We have grown, outstripped the other sectors in the economy, but we can never take that for granted. We not only want to grow, but we want it to be inclusive growth – benefiting as many people as possible. We also want to pride ourselves on sustainable tourism. There has to be elements of sustainability built into it, as well as strong awareness of environmental and social aspects.”
Meanwhile, he pointed out that tourism had “enormous transformative power”, and that it supported roughly 1.4-million direct and indirect jobs. He also highlighted that, with its multiplier effect, it contributed 9.5% to the country’s gross domestic product.
As part of the TIP, the Department of Tourism would subsidise a portion of the costs incurred by tourism establishments to participate in trade exhibition and marketing roadshows. The subsidy would include a capped reimbursement towards predetermined expenses, such as airfare, accommodation and exhibition fees, for participation in marketing platforms supported by South African tourism.
Further, owners who wanted their establishments to be graded by the Tourism Grading Council of South Africa would be supported through a structured system of retroactive discounts or rebates on the grading assessment fee.This would make the grading more affordable for smaller businesses and incentivise more establishments to become graded.
Department of Tourism TIP chief director Bernhard Meyer noted that the first assessment for grading of an establishment would receive a 30% rebate, which would increase every year. Companies could receive up to 50% in rebates, with continuous loyalty rebates following the fifth assessment.
He added that applications for tourism grading support could be made from April. “We are, however, targeting SMMEs with turnovers of R35-million a year,” he said, adding that start-up businesses might be included in future programmes.