South Africa’s appeals court ruled the Department of Tourism’s focus on only black businesses for payouts to help the industry overcome the coronavirus pandemic is unlawful.
The Bloemfontein-based court said the Minister of Tourism committed an error and is not legally obliged to allocate funds based on black economic empowerment requirements.
Labor union Solidarity and civil-rights group AfriForum, which often speak out against the government’s race-based redistribution policies and land reform plans aimed at reducing the dominance of white ownership, earlier successfully applied for a freeze on the Tourism Equity Fund because it only focused on black businesses.
The R1.2-billion, which was set up by the government to assist the industry, was particularly hard hit during the Covid-19 pandemic as border closures and travel restrictions prevent the usual flow of holidaymakers from Europe and elsewhere.