Distressed tourism businesses and operators in KwaZulu Natal will get another chance to apply for financial assistance after the second phase of the R20 million (€1.1m) Tourism Relief Fund opened yesterday (September 27).

The KZN Department of Economic Development, Tourism and Environmental Affairs (EDTEA) together with Tourism KwaZulu Natal will work closely with community tourism organisations (CTOs) and tourism formations to ensure that as many as possible qualifying tourism businesses facing distress are supported.

The first phase of the R20 million fund saw only a total of R858 500 (€48 600) being disbursed to support 29 qualifying tourism businesses and tour guides. This low uptake was as a result of many applicants being disqualified due to noncompliance with the terms and conditions of the fund.

Some of the factors that contributed to the high number of unsuccessful applicants included:

• Incorrect and incomplete information being provided;
• Lack of business registration documents, which include registration with CIPC, EDTEA and sector associations;
• Lack of compliance with tax regulations applicable to businesses; and
• Limited scope of tourism businesses eligible to apply for the relief fund.

Given the low number of successful applicants and the fact that there is still budget available for the tourism relief fund, EDTEA decided that a second intake of applications be considered under revised selection criteria to accommodate more tourism businesses.

The Tourism Relief programme forms part of government’s efforts to mitigate the effects of the COVID-19 pandemic on the tourism sector.

“Through this fund we hope to assist businesses to mitigate the effects of the pandemic, prevent job losses and get them back towards a path of stability.

“KwaZulu Natal is a leading tourist destination whose success relies on a thriving sector that includes tour operators, accommodation establishments, restaurants, tourist guides, attractions and other tourist offerings. It is essential that the value chain works in its entirety,” said MEC for Economic Development, Tourism and Environmental Affairs, Ravi Pillay.

EDTEA and Tourism KZN will be engaging with relevant stakeholders to ensure that the information about the Tourism Relief Fund reaches as many tourism businesses as possible and will ensure that applicants are assisted during the application process.

“During the first phase of the Relief Fund, we received 403 applications but only 29 met the requirements. With this phase of funding, we are hoping to support a further 370 businesses and we have therefore extended the scope of eligible businesses in order to reach as many businesses as possible,” said Pillay.

He encouraged business owners who will be applying for funds to make sure that they attach the required documentation to their applications. They must also ensure that their businesses meet the necessary tax requirements and, most importantly, avoid submitting incorrect and incomplete information.

“On completion of this phase we would have reached more than 1 000 tourism enterprises with some form of relief,” Pillay explained.

Eligibility

The following businesses and entities operating from and within the province are eligible to apply for the tourism relief:

• Accommodation establishments: Hotels, Resort entities, Bed and Breakfast establishments (B&Bs).
• Hospitality and related services: Restaurants, including those attached to hotels, provided that they have separate ownership to hotels; all conference venues, including those attached to hotels, provided that they have separate ownership to hotels; professional catering businesses.
• Travel and related services: tour operators, travel agents, tourist guides, car-rental companies, shuttle services transporting tourists, coach operators and attractions operators.
• MICE (Meetings, Incentives, Conferences and Exhibitions) sub-sector: Destination Management Companies, Professional Conference Organisers, Incentive buyers, Exhibition Companies.
• Rickshaw operators providing carriage services to tourists along the province’s beaches.
• Arts & Craft co-operatives producing and selling art and craft products for tourists in various tourist attractions, site centres and routes.
• Traditional performance groups entertaining tourists associated with accommodation facilities and attractions.

Criteria for tourism, hospitality and travel-related businesses:

• An enterprise must be officially registered with relevant business registration authorities such as Companies and Intellectual Property Commission (CIPC) and those operating as Sole Proprietors.
• An enterprise must also be registered or in the progress of registration with the KZN Department of Economic Development, Tourism and Environmental Affairs (EDTEA).
• An enterprise must be generating a turnover not exceeding R10 million (€565 800) per business financial year prior to March 2020.
• An enterprise must be compliant with all tax regulations and in possession of a valid tax clearance certificate.
• An enterprise should not have benefited from the National and Provincial Tourism Relief Fund.

Criteria for tour guides:

• Must be registered as a tour guide with the provincial Department of Economic Development, Tourism and Environmental Affairs (EDTEA).
• Must have been in service for a period of one year or more before the emergence of the pandemic.
• Must not have benefited from the national tourism relief fund for tour guides.
• The submitted online applications for tour guides must be accompanied by the following compulsory supporting documents: Completed online application form, copy of registration as a tour guide; and certified copy of ID.

Criteria for destination management companies (DMCs), professional conference organisers (PCOs), incentive buyers and exhibition companies:

• Be officially registered with relevant business registration authorities such as Companies and Intellectual Property Commission (CIPC) and those operating as Sole Proprietors.
• Be registered or be in the process of registering with the KZN Department of Economic Development, Tourism and Environmental Affairs (EDTEA).
• Be generating a turnover not exceeding R10 million (€565 800) per business financial year prior to March 2020.
• Be compliant with all tax regulations and be in possession of a valid tax clearance certificate.
• Must not have benefited from either the National or the Provincial Tourism Relief Fund.
• Be registered with professional associations such as the Southern African Association for the Conference Industry (SAACI), Southern Africa Tourism Services Association (SATSA) and the Exhibition Association of South Africa (EXSA).

The criteria for Arts and Craft Co-operatives:

• Be a registered Arts and Craft co-operative or sole proprietor operating in the province, providing its products to tourists.
• Be in service for one year or more and have not benefited from the National or Provincial Tourism Relief Fund.

The criteria for traditional performance groups attached to tourism establishments and attractions:

• Be traditional performers operating in the province, providing entertainment through performance for visitors/tourists.
• In service for one year or more before COVID-19.
• Letter of confirmation of service from the tourism establishment and/or attraction and certified ID copy of the group manager.

The criteria for rickshaw operators:

• Be registered as an informal trader with eThekwini municipality.
• In service for one year or more before COVID-19.
• Certified ID copy of the applicant.

The once-off grant amount is set out as follows:

• For tourism enterprises it will be capped at R50 000 (€2 800) per applicant.
• For destination management companies (DMCs) it will be capped at R50 000 per applicant.
• For professional conference organisers (PCOs) it will be capped at R50 000 per applicant.
• For incentive buyers it will be capped at R50 000 per applicant.
• For exhibition companies it will be capped at R50 000 per applicant.
• For Arts and Craft co-ops it will be capped at R10 000 (€570).
• For traditional performers attached to accommodation establishments and attractions it will be capped at R10 000.
• For tour guides it will be capped at R4 500 (€250) per applicant.
• For rickshaw operators it will be capped at R4 500 per applicant.

Applications will be evaluated by an independent assessor for verification and these assessments will go before a screening committee.

Applications will close on October 29, and application forms are accessible online from the official TKZN website.

A call centre has been set up to guide and provide information to applicants.