R120 million will be allocated per year for the next three years to support emerging black owned businesses, Tourism Minister Thokozile Xasa announced in the Tourism Budget Vote Speech on Tuesday afternoon.

In her speech, Xasa said the theme of this year's budget is sustainability, in line with the UNWTO theme for the year. The vision is to promote and develop a tourism sector that is "economically beneficial, environmentally friendly, socially equitable and culturally responsive", she said.

The R120 million fund comes after a memorandum of understanding was signed between the Department of Tourism and the National Empowerment Fund (NEF). In terms of the agreement, the NEF is matching department funding on a 1:2 ratio, with R40 million of the fund allocated from the department and R80 million from NEF.

The R360 million allocation over the next three years will offer a combination of grant funding and debt financing. Grant funding will be capped at R5 million and the fund will be accessible in the second quarter of the 2017/18 financial year.

Announcing the fund, Xasa said it would unlock investment opportunities for black business and give financial support that will ensure sustainability. Access to finance has been one of the greatest obstacle facing small, medium and micro enterprises.

A new tourism B-BBEE portal is another initiative announced on Tuesday by the Minister to support SMMEs. She said the portal will give black suppliers a platform for self-assessment and also connect these suppliers to buyers.

Speaking to the media ahead of the budget vote, SA Tourism CEO Sisa Ntshona said growing tourism's contribution to GDP is the key objective. He said in order for the country to grow its market share, more experiences and products need to be developed, offering a great opportunity to allows new entrants into the sector.

Tourism Update will provide details on the application process for the fund as well as more information on the portal in upcoming issues.

To read the full Budget Vote, click here