In an effort to cushion the blow of the Covid-19 lockdown, the Department of Tourism has made an additional R200 million available to assist small, micro and medium enterprises (SMME’s) in the tourism and hospitality sector.

Over the last few weeks, Covid-19 has compelled countries, including South Africa, to devise measures ranging from travel bans to events cancellations and now a lockdown in an attempt to contain the spread of the virus.

Also read: Gauteng Health gives update on Covid-19 measures

The impact of these measures will be devastating and will vary in accordance with the size of the enterprise in short to medium term.

The hospitality and tourism sectors will be particularly hard hit by the new restrictions.

The funds made available will be set out to benefit SMMEs in all the 9 provinces from various tourism subsectors.

Businesses in the tourism industry working in rural areas and townships as well as businesses owned by women, young people and people with disabilities will be favoured when the funds are administered.

Also read: Covid-19: The 21-day lockdown in SA and you

Funds will be made available to businesses in the accommodation sector including hotel, bed and breakfasts and resort properties.

Additionally, those in the hospitality industry including restaurants, not attached to hotels and conference centres, not attached to hotels as well as attractions, and professional caterers will benefit from the funds.

Businesses in the travel and related services including tour operators, travel agents, tourist guides, car rental companies and coach operators will also stand to benefit from the fund.

To benefit from the fund business in the tourism sector need to meet the qualifying criteria including their registration with Companies and Intellectual Property Commission (CIPC).

Other criteria are that the business should not exceed a turnover over R2.5-million per year and have a valid tax clearance certificate.

Businesses must also have guaranteed employment for a minimum number of staff for a period of three months as well as proof of minimum wage compliance.

Additionally qualifying businesses must provide proof of UIF registration for employees employed by the business and be an existing tourism-specific establishment as outline in the scope of application.

It is important to note that suppliers and intermediaries are not eligible to benefit from the additional funds.

To qualify businesses must be in existence for at least one business financial year and be able to prove that the relief is required as a result of the impact of Covid-19.

They must submit statements of financial position including over 12 months’ bank statements, balance sheet, income statements, cash flow statements and indicate the intended use of the resources.

The relief funds for the tourism industry will be distributed in a spatially equitable manner to ensure that all provinces benefit.

At least 70 per cent of beneficiaries in the tourism sector will be businesses that are black owned and at least 50 percent of beneficiaries in the sector will be businesses that are women owned.

At least 30 per cent of beneficiaries for the tourism sector will be businesses that are youth owned and at least 4 percent of tourism beneficiaries will be businesses that are owned by people with disabilities.

Plans are also underway to establish the Tourism Services Call Centre where affected businesses can get information on the available relief measures, postponements of events and will act as a helpline for tourists.

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