The next window for applications for businesses for the Department of Tourism’s Green Tourism Incentive Programme (GTIP) will open on May 2 and run until June 30.
The GTIP offers partial grant funding on the cost of retrofitting tourism facilities with energy and water efficiency equipment and systems based on the outcome of a resource efficiency audit.
Making the announcement yesterday (April 25), Minister of Tourism, Patricia de Lille, said: “The GTIP demonstrates collaboration by government and the private sector working together to keep tourism open for business and continue welcoming more visitors to our beautiful country. This initiative is also part of government’s efforts to drive down demand on the national electricity grid.
“The impacts of climate change, electricity constraints and costs are being felt by all businesses and we have this programme available to lend a helping hand to businesses to ensure that they can continue to operate, despite constraints.”
De Lille encouraged all tourism businesses to apply for the GTIP.
“The GTIP was developed and informed by escalating electricity prices, the intensifying pressure on the national energy grid and associated load-shedding conditions, as well as water scarcity and drought conditions which negatively impact the tourism sector.”
According to the Minister, the GTIP not only helps to reduce pressure on the national electricity grid and water resources of the country, but also ensures an uninterrupted visitor experience for tourists, reduces operational input cost and facilitates increased competitiveness and operational sustainability in the tourism sector.
The programme has been running for the past few years and, so far, 130 applications for GTIP funding have been approved at a total grant value of R76.1 million (€3.7m).
More than 41 of the 130 approvals have either already commenced or completed installation while the remaining approved applicants are at various stages of finalising contracts.
The solutions installed or being installed at these approved GTIP applicants’ businesses are projected to substantially reduce energy consumption and result in electricity cost savings of between 65% and 80% on the electricity bills of these enterprises.
Those installing water-efficiency systems will typically see a reduction of between 30% and 50% in their water consumption.
From the projects that have either commenced or completed installations:
- the majority are in the Western Cape and Gauteng followed by Limpopo, North West, Eastern Cape and KwaZulu Natal, and also two projects in the Free State and Northern Cape respectively;
- most are very small with fewer than five employees, and only a few are larger with more than 50 employees; and
- more than half of the enterprises have majority black-ownership, and majority women-ownership.
“The support from government has allowed businesses to stay open and continue to operate during loadshedding. This has also meant that businesses are saving on electricity costs and reducing carbon emissions, a key measure in the fight against climate change,” highlighted De Lille.
In addition, she said, the adoption of green technology had meant that businesses could operate uninterrupted and were able to retain staff.
How it works
The GTIP offers partial grant funding on the cost of retrofitting tourism facilities with energy and water efficiency equipment and systems based on the outcome of a resource efficiency audit.
Phase 1 of the application process involves a resource efficiency audit (the cost of which is fully covered under the programme) as well as the identification of appropriate solutions.
This is followed by Phase 2 where an applicant can apply for funding support – 50% to 90% up to R1 million (€49 666) – on the cost of installing relevant technologies and equipment recommended during the first phase.
The two-phased application process separates the energy and water efficiency audit process from the funding application processes.
The key objectives of the GTIP are to:
- encourage enterprises to install energy and water efficient equipment in accordance with responsible tourism principles;
- address the current market obstacle of high up-front capital requirement and poor market awareness of the cost-benefit of energy- and water-efficient solutions;
- facilitate reduction in operational input costs of enterprise (especially small and micro enterprises) to counter the impact of electricity price increases; and
- reduce reliance and pressure on the national electricity grid and scarce water resources.
Proven projects
Yesterday, De Lille earlier visited the Houw Hoek Hotel in Grabouw in the Western Cape to highlight an example of the Department of Tourism’s Green Tourism Incentive Programme.
She explained: “The Houw Hoek Hotel has an impressive solar photovoltaic (PV) system installed which has been able to assist the business to withstand the impacts of loadshedding and ensure continuity of business operations and an uninterrupted experience for its guests.
The owner of the Houw Hoek Hotel, Robert Haarburger, pointed out: “On a good day I can save 50% of my usage, which is a huge saving. I have had this system installed since late 2021 and if I had not had this in place, my electricity costs would’ve been substantially higher. I would have had to put more of my own money in to keep the ship afloat.
“The guests like it when they find out that we have solar power as it shows we are green conscious and, for me, I don’t want to waste sunshine. It’s good to see sunshine being so productive, producing energy, saves me money and helps reduce carbon emissions. It makes the business more efficient and its green energy, it’s good for business.”
The programme is administered by the Industrial Development Corporation on behalf of the Department of Tourism and all applications need to be submitted to the IDC. Businesses can apply via the IDC website: www.idc.co.za
