proposed tourism incentive programme portfolio committee on tourism 05 september 2014 department of...
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PROPOSED TOURISM INCENTIVE PROGRAMME
Portfolio Committee on Tourism05 September 2014
Department of Tourismwww.tourism.gov.za
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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
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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.
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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).
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Proposed TIP Phased Approach
Phase 3
Dynamic process - continuous programme improvement and expansion
Phase 1 Phase 2
• Market access programmes
• SRI sustainability support
Tailored product development and investment support (e.g. energy efficiency, universal access, etc.)
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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 6
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
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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.
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Thank you
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