PROPOSED TOURISM INCENTIVE PROGRAMME

1. PROPOSED TOURISM INCENTIVE PROGRAMME Portfolio Committee on Tourism 05 September 2014 Department of Tourism www.tourism.gov.za

2. 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

3. 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.

4. 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).

5. Proposed TIP Phased Approach Phase 1 Phase 2 Phase 3 Dynamic process - continuous programme improvement and expansion • Market access programmes • SRI sustainability support Tailored product development and investment support (e.g. energy efficiency, universal access, etc.)

6. 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

7. 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

8. 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.

9. Thank you