Applications for the Department of Tourism’s Tourism Relief Fund opened on April 7 and will continue until May 30.
Established as an intervention to mitigate the impact of Covid-19 coronavirus on the tourism sector, the R200-million fund provides a once-off capped grant to small, micro and medium sized enterprises (SMMEs) to ensure sustainability during and after the implementation of the nationwide lockdown.
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“We acknowledge the difficulties experienced by businesses during this time, hence the need to support the industry and communities to cope with the negative effects of this pandemic,” said minister of tourism, Mmamoloko Kubayi-Ngubane.
“Our tourism industry is comprised of mainly SMMEs, most of which are survivalists in nature, with limited access to funding from commercial institutions. We hope the support offered through the Tourism Relief Fund will assure the continued survival of SMMEs beyond the Covid-19 pandemic,” said Kubayi-Ngubane.
Linda Grimbeek, COO of the Kruger Lowveld Chamber of Business and Tourism (KLCBT), said they “welcome this fund which is specifically created to assist the small tourism businesses”.
Capped at R50 000 per entity, the grant funding can be utilised to subsidise expenses towards fixed costs, operational costs, supplies and other pressure cost items.
Grimbeek said the fund only assists exempted micro enterprises, which means businesses of under R5 million per annum in the tourism industry. “We are very concerned that these small businesses are not necessarily registered as companies, or that they will have financial statements in place to give as proof.
“We are also concerned that they may not be able to access six months’ bank statements which usually requires a trip to the bank and a waiting period of five days. We do however encourage all businesses to try and access any funding they can possibly apply for.”
According to her, for businesses of such a small size, R50 000 relief might mean they can at least pay staff for another month or maybe two. “We do not know when the lockdown in SA, let alone our core markets in the rest of the world, will be lifted, and our main aim right now should be to retain staff.
“We further appeal to business owners who do get access to any funding, to apply it to retain as many staff as possible. Negotiate with other creditors and banks for down payment of bills later during the recovery period. Rent is one of those examples that you certainly can talk about.
“We are all in the same boat, and landlords are not likely to kick you out or put another tenant in your place at short notice. Don’t hide, talk! Do not let bills fall behind and then try to reason with creditors. Do it before you lapse on payments. Please do not be greedy, use the funding to ensure the survival of your business and to retain jobs, not just your own household expenses,” she said.
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The Department of Tourism said, guided by the Tourism Broad Based Black Economic Empowerment (B-BBEE) Codes of Good Practices approved by the minister of trade and industries in 2015 (in line with the B-BBEE Amendment Act No. 46 of 2013), the fund is administered in line with the objectives of economic transformation and the vision to ensure sustainable and inclusive tourism development. The disbursement of funds will ensure equitable spatial distribution in terms of provinces.
Categories eligible to apply for the Tourism Relief Fund include the following:
• Accommodation establishments: hotels, resort properties, bed and breakfast (B&Bs), guest houses, lodges and backpackers.
• Hospitality and related services: restaurants (not attached to hotels), conference venues (not attached to hotels), professional catering, and attractions.
• Travel and related services: tour operators, travel agents, tourist guiding, car rental companies, and coach operators.
Preference will be given to enterprises with the highest score in terms of the criteria which serve as a pre-qualification. A panel of experts will conduct the final evaluation in terms of functionality.
The qualifying criteria include the following:
• Proof of valid registration with Companies and Intellectual Property Commission (CIPC).
• Must be an exempted micro enterprise (EME) defined in terms of the Amended Tourism B-BBEE Sector Code, 2015.
• Must have a valid tax clearance certificate or PIN.
• Proof of compliance with the minimum wage requirements.
• Proof of UIF registration for employees employed by the business.
• Be an existing tourism-specific establishment as outlined in the scope of application (suppliers and intermediaries are not eligible).
• Must be in existence for at least one business financial year.
• Proof that the relief is required as a result of the impact of Covid-19.
• The latest statements of financial position, financial performance and cash flows.
• Six months’ bank statements.
• Grading certificate or proof of application to be graded for accommodation establishments.
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The following activities do not qualify:
• Fast food and takeaway restaurants, nightclubs, bars, gaming and gambling venues
• Franchised restaurants and those attached to tourism facilities
• Establishments wholly or partially owned by government will not be considered
Further information on the fund terms and qualifying criteria is available on the tourism website www.tourism.gov.za. SMMEs can submit funding applications by completing a form accessible online at www.tourism.gov.za/Pages/COVID19tourismrelieffund.aspx
Application forms must be submitted with the following pre-qualifying/compulsory documents:
• Complete application form.
• Registration certificate issued by CIPC.
• Certified ID copies of directors/members.
• Six months’ bank statements.
• Latest annual financial statements – Income, cash flow statements and statement of financial position.
• Business profile – two to five pages maximum.
• Relevant industry certification – depending on the business focus area.
• Latest UIF/U-filing contribution certificate.
• Indicate the intended use of the resources – budget breakdown (to be adhered to in the expenditure).
• Grading certificate or proof of application to be graded (where applicable)
• Certificate of B-BBEE or affidavit.
• Tax clearance certificate or PIN.
• Medical certificate for people with disabilities where applicable.
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Inquiries on the fund can be emailed to callcentre@tourism.gov.za or covidrelief@tourism.gov.za . Alternatively contact the call centre on 0860-868-747, weekdays from 08:00 to 22:00.
