A presentation by South Africa's National Department of Tourism: incentivising tourism businesses to increase job opportunities; increase the quality of the country's tourism product offering; improve energy efficiency in tourism businesses. Uploaded with consent of the presenter, Nthabeleng Chokoe

1. Tourism Incentive Programme
TIP Workshop –Western Cape
George, 23 July 2015
Department of Tourism
www.tourism.gov.za
Slide 1

2. A force for change
Tourism brings socio-economic development and growth
Tourism has transformative power to accelerate more inclusive growth
Tourism Incentive Programme is a tool to activate change
2015/16 is the year of the pilot
phase
Slide 2

3. More employment
Enhanced visitor experience
More competitive destination
Energy security, lower input costs
Enterprise growth
Quality standards
Enhanced iconic attractions
Efficient and renewable energy sources
Desired outcomes
Slide 3

4. Pilot phase focus areas
• Market access support: Subsidise access to new markets
• Tourism grading support: Lower the cost of tourism grading
• Destination development: Invest in improved facilities at strategic attractions
• Energy efficiency pilot: Retro-fit facilities with renewable energy systems
Slide 4

5. Market access support
• Partial reimbursement of certain costs
• Participation in predetermined international marketing platforms
• Capped amounts on airfare, accommodation and exhibition or participation fees
Objectives:
– Unlock untapped market potential and
introduce new players to the market
– Reduce cost burden on tourism enterprises
to access markets
– Facilitate enterprise growth and expansion
to stimulate job creation and sector
transformation
Slide 5

6. Market access support (2)
Process:
• Published list of marketing platforms to be supported with regular calls for applications
• Technical assessment against eligibility and qualifying criteria in programme guidelines
• Approval, contracting and participation
• Post intervention reporting and reimbursement of agreed amounts
6Slide 6

7. Market access support (3)
Business Tourism:
• IMEX America, USA (Incentive Travel, Meetings and Events)
• EIBTM, Spain (Incentive Travel, Meetings and Events)
• CIBTM, China (Incentive Travel, Meetings and Events)
Leisure Tourism:
• ABAV Travel Show, Brazil
• Vakantiebeurs, Netherlands
• Swahili Tourism Expo, Tanzania
• Magical Kenya, Kenya
• Akwaaba, Nigeria
• World Youth Student Travel Conference
SAT Roadshows:
• India Roadshow, India
• Asia Roadshow, China, South Korea, Japan
Slide 7

8. Target Group-IMASP (4)
• Small and medium sized inbound tourism enterprises
• Majority South African and Privately owned
• Formally Registered Enterprises (CC, PTY Ltd., Cooperatives & Community Trust)
• Annual turnover not exceeding R 35 000 000
• Demonstrate experience in selling South African based packages
• Compliant with SARS
• Compliant with Tourism BBBEE codes
• Have public liability cover insurance
Slide 8

9. Tourism grading support
• A structured and incremental system of rebates on annual assessment fees paid
to the Tourism Grading Council
• 30% rebate on 1st assessment
• 35%, 40%, 45%, 50% respective rebates on 1st, 2nd, 3rd, and 4th re-assessment
• Continuous 50% loyalty rebate on 5th and subsequent re-assessment
• Additional 10% transformation rebate
Objectives:
– Greater conformity to quality standards
through wider participation in the
Tourism Grading system
– Enhanced visitor experience and
improved destination competitiveness
Slide 9

10. Tourism grading support (2)
Process:
• Application for rebate upon receipt of the star grading from the TGCSA
• Technical assessment against eligibility and qualifying criteria in programme guidelines
• Adjudication, approval, and reimbursement
Slide 10

11. Tourism grading support (3)
Target group
– Existing TGCSA members and newly graded establishments
– Particular focus will be placed on small–and medium-sized accommodation and meeting
venues
– Operate as a recognised legal entity (preferably a South African registered business e.g.
CC, (Pty) Ltd, Co-operative, Community Trust)
– Sole Proprietor also accepted
– Be in compliance with the SARS
Slide 11

12. Destination Development
• Development assistance grant for projects in which the
department is already involved
• Focus on strategic icon attractions and community owned
projects
Objectives:
– Enhance strategically important destination areas and icon
attractions
– Operational sustainability support for viable community based
projects
Pilot phase focus:
– Walter Sisulu Botanical Garden (SANBI)
– Kruger National Park (SANParks)
– Robben Island Museum (World Heritage Site)
– Social Responsibility Implementation (SRI projects)
Slide 12

13. Energy efficiency pilot
• Subsidise the retro-fitment of tourism facilities with
renewable energy systems to enhance the visitor
experience
Objectives:
– Alleviate pressure on the grid and ensure reliability of
electricity supply
– Reduce input cost for tourism operations
– Reduce the sector’s carbon footprint
– Confirm our status as a leading responsible tourism
destination
Solar technology opportunity:
– Decentralised energy generation
– Short payback period
– 20 year maintenance contracts on Photovoltaic (PV)
systems
– Localised production to support Industrial Policy 13
Slide 13

14. A phased approach
Pilot phase focus on state-owned destination areas:
– World Heritage Sites
– National Parks
– Botanical Gardens
– SRI projects and TRE Pilot Project
Subsequent phases:
– Staggered subsidy to incentivise retro-fitment for private
sector tourism enterprises
– Larger subsidies for smaller enterprises
– Possible financing instruments for non-subsidised portion
Procurement and contracting:
– In accordance with Public Finance Management Act
– Partnership with Development Finance Institutions
– Emphasis on localisation of production to support green
economy 14
Slide 14

15. Retro-fitment benefits
• Tourists - uninterrupted visitor/tourist experience
• Enterprise – lower input cost goes straight to
bottom line
• Country – less pressure on grid, competitive edge
Examples:
– 500kW PV mini-grid to cover electricity
requirement will save Robben Island R 7 million
p.a.
– 280kW PV mini-grid to cover peak demand in a
visitor camp will save SANParks close to a R1
million p.a.
– 65kW PV system can save a 250-room hotel more
than R50 000 p.m.
– 10kW PV-system can save a 15-room guest house
more than R5 000 p.m.
15Slide 15

16. Governance and management
• Follow prescripts of Public Finance Management Act
• Technical assessment and verification
• Adjudication committee appointed by the Director General
• Regular meetings – recommendations to Director General for approval
Slide 16

17. Looking ahead
Pilot Phase:
• Programme guidelines are now available
• Awareness campaign through a series
of provincial workshops
• Call for applications for market
access support prior to each event
Following the pilot phase in 2015/16:
• Refine and re-align some programme components
• Expand and scale-up programme components
• Introduce new programmes
Slide 17

18. Slide 18
More information available on the Department’s website www.tourism.gov.za
Email enquiries can be directed to tipenquiries@tourism.gov.za or telephone 0860 121 1929