PROPOSED TOURISM INCENTIVE PROGRAMME

Portfolio Committee on Tourism05 September 2014

Department of Tourismwww.tourism.gov.za

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Background

• Establishment of the NDT in 2009

• DTI suspends Tourism Support Programme (TSP) in September

2012

• NDT to design, develop and administer new incentive programmes

aligned to the NTSS.

• This will not be a re-launch of the TSP, but will be a new

programme

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Guiding principles

• Incentives programmes are generally introduced to stimulate specific or desirable economic behaviour, encourage the development or growth of specific products or markets, or address a systemic market obstacles/failure.

• Incentive programmes must:– be based on a clear rationale;– be aligned to the NDT’s mandate and strategic objectives of the NTSS;– offer clear and transparent guidelines and rules for applicants; and– be measurable in terms of impact.

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Lessons from the TSP

• Limit the number of objectives per programme.

• Programme guidelines must be clear and concise.

• Application and claim process must be simple and easy.

• Requirement of intermediaries/ consultants to be avoided.

• Administrative capacity must be sufficient.

• Turnaround times to be as short as possible.

• Adjudication process must be efficient and effective.

• Monitoring programme must be in place.

• Phased approach to be adopted for development of Tourism Incentive Programme (TIP).

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Proposed TIP Phased Approach

Phase 3

Dynamic process - continuous programme improvement and expansion

Phase 1 Phase 2

• Market access programmes

• SRI sustainability support

Tailored product development and investment support (e.g. energy efficiency, universal access, etc.)

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Proposed phase one concept • First phase focus

– Facilitate sustainability of rural and community based projects funded by the NDT (SRI projects)

– Facilitate improved market access for tourism enterprises (International and Domestic)

• Target groups– Existing and new SRI projects (community owned/ rurally located)– Emerging tourism enterprises (<3 years in operation, < R2m turnover)– Established tourism enterprises (3 years + in operation)– Focus on sector transformation

• Broad eligibility criteria– SA registered business (CC, Pty Ltd, Co-op, Community Trust)– Tax affairs in order with SARS – B-BBEE compliance at Level 4 or above– Sufficient public liability cover

• Qualifying criteria— Balanced scorecard approach 6

Consultation process to date

• Preliminary industry consultations

• Minister’s industry consultation session

• Five working groups established– Tourism development funding forum– Development of a destination development plan framework– Design and development of current and future programmes as per draft

Tourism Incentive Programme– Tourism signage– Enhancement of ports of entry

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Future focus

• Potential focus areas include:

– Tailored capital investment support to address specific NTSS objectives (e.g. resource efficiency, universal access).

– Enhancing visitor experience (visitor information, signage, etc.).

– Destination development.

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Thank you

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