With loadshedding continuing to impact the tourism industry, stakeholders are placing hope on the Green Tourism Incentives Programme (GTIP) to assist them with meeting the significant costs of installing sources of renewable energy.

On Friday, February 17, SATSA hosted a webinar with the Department of Tourism (DoT), the Industrial Development Corporation (IDC) and over 100 members of the inbound tourism industry, to discuss the application process for the GTIP. The current window for applications ends on February 28.

“Although GTIP has been running for a number of years, many people in the tourism industry were not aware of this avenue for funding. And with the current energy crisis and the industry battling with the effects of loadshedding, the fund is more pertinent now than ever,” said Hannelie du Toit, COO of SATSA.

The grant funding programme was first established as a pilot initiative in the 2015/16 financial year to counter the disruptive impact of loadshedding on the tourism industry. The pilot initially supported the installation of eight solar PV systems at state-owned sites, including the Robben Island Museum and facilities owned by South African National Parks and the South African National Biodiversity Institute.

In 2017, the fund (which is managed and administered by the IDC) was opened to the private sector, and capitalised with R142.5 million (€7.4m). The fund initially provided grants of 30% to 90% of the cost of approved interventions for power and water efficiency, up to a maximum of R1 million (€51 691), with applicants required to pay 10% of the amount required to conduct a resource efficiency audit on their properties.

Following a review in 2020, GTIP was recapitalised with an additional R130 million (€6.7m), with the minimum grant funding limit raised to 50%.

“Our members are spending huge amounts of money on diesel for generators, so if they are able to offset the costs of installing renewable energy it is hugely beneficial,” Du Toit added.

Grants are not provided to cover the costs of systems that have already been installed.

Process still being refined

The 2020 GTIP review saw the establishment of an IDC panel of assessors to assist with reviewing applications. However, speaking at Friday’s webinar, IDC Programme Manager Craig Sauls warned that the initial audit process might take longer than applicants hoped.

“Audits take a significant amount of time. We have seen the window that closed at the end of March (2022) approvals come through at end of January (2023). And the only reason is because of audit processes taking place in the background. We are trying to cut that down. Everything we do is trying to be more efficient in these processes and in this window we are trying to get them pushed through as quickly as possible,” said Sauls.

Du Toit commended the urgency with which the IDC was seeking to streamline the process.

“We would of course like to see the timeline from application to approval being cut down significantly. Our call is that, if the GTIP assists in addressing the current crisis, more funding and human resources need to be allocated towards it to ensure it operates optimally,” she said.