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1. TOURISM FUNDING AREAS

The Tourism fund will cater for five categories:

  • Adventure Tourism
  • Hospitality and Land Reform
  • Tourism Exhibition and Conferences
  • Ecotourism, Coastal and Marine
  • Tour Operators

1.1 TOUR OPERATORS

The Tour Operators support fund aims to build a tour operating sector that has a strong culture for excellence on packaged tours, enabling tour operators to be highly competitive whilst endeavouring to achieve a high volume of turnover and maximum International and domestic market share by effectively operating. It has been noted that the success of many developed and developing nations as tourists destinations depend heavily on a tour operator’s ability to attract tourists, development and promotion of tourism plant, diversification of tourism products and their social responsibilities to develop a remote and backward area thus leading to the province of KwaZulu-Natal becoming economically competitive and a destination of choice.

Tour operator is an organization, firm or company who buys individual travel components, separately from their suppliers and combines them into a package tour, which is sold with their own price tag to the public directly or through middlemen.

The grant will be capped at R 200 000.00-500 000.00 for system and technology development, vehicle branding at R 100 000.00, branding material at R 100 000.00 , upgrade of vehicle for universal accessibility at R 200 000.00-R 500 000.00, conversion of vehicles to safari vehicles at R 200 000.00 and subsidise tour packages.

The Tour Operators need to be:

  • 1% Black owned businesses, commercially viable and sustainable;
  • Preference to be given to Youth and Women owned businesses;
  • Businesses with at least two years in operations;
  • Secured financial backup and letters of intent for start-ups businesses;
  • Businesses with an identifiable opportunity or linkages to enhance and strengthen relations with neighbouring countries;
  • Businesses to submit proof of SATSA affiliation and/or Tour Operating Bodies/authorities
  • Business to submit proof of Passenger Liability insurance
  • Proof of ownership of vehicles to business owner

Objectives of the Tour Operator Fund  

  • Facilitate the prioritisation of transformation within the tourism sector
  • To balance the economic opportunities of the sector in the province
  • Build a tour operating sector that has a strong culture for excellence on packaged tours
  • Enabling tour operators to be highly competitive whilst endeavouring to achieve a high volume of turnover and maximum International and domestic market share by effectively operating.
  • Promote ownership by youth and women
  • Stimulate empowerment, development and job creation
  • Stimulate tourism destination awareness 

Application of the fund

Under this funding call, applications under the Tour Operator funding stream will ONLY cover the following:

  • system and technology development (digital marketing, audio systems for guiding etc.)
  • vehicle branding such as stickers ( non-magnetic)
  • website development,
  • branding material (business cards, flyers, brochures, banners etc.)
  • Upgrade of vehicle for universal accessibility ( wheelchair ramps)
  • conversion of vehicles to safari vehicles
  • Subsidise tour packages 

The following Tour Operator categories will be covered to:

  • Inbound Tour Operators
  • Domestic Tour Operators
  • Ground Tour Operators 

1.2 ECOTOURISM, COASTAL AND MARINE

South Africa’s nature and wildlife including long coast and pristine coastal environment presents opportunities to further Coastal and Marine Tourism (CMT) development with a view to boost local economic development to those areas. As part of the Operation Vula Fund initiative of the Department of Economic Development, Tourism and Environmental Affairs aimed at assisting developing, small, medium and micro enterprises and cooperatives; the province of KwaZulu-Natal is seeking to promote and provide funding support to coastal and marine tourism catalytic and sustainable projects with an aim to grow tourism base, promote access to leisure and economic opportunities for local communities, provide platform for private sector investment in tourism and to utilise CMT as a catalyst for infrastructure development and economic inclusivity. 

The funding will be utilised to reduce funding gaps within existing and start-up Coastal & Marine tourism businesses and infrastructure upgrades along the coast, rivers and dams. The grant will be caped 0-R 200 000.00 for equipment and up to R 500 000.00-R 1 500 000.00 for infrastructure upgrade and infrastructure start-up for R 1 000 000.00 by qualifying black owned enterprises and municipalities. 

Objectives of the Ecotourism, Coastal and Marine Tourism Fund 

To balance the economic opportunities afforded by our nature, wildlife, oceans, rivers and dams with the stringent protection of marine biodiversity and resources. Priority focuses on subscribing and committed to the principle of sustainable development as well as to develop integrated ecotourism experiences and coastal zones in a sustainable way.

The fund will focus specifically on:

  • Facilitate the prioritisation of transformation within the tourism sector
  • 1% Black owned Coastal and Marine businesses that are commercially viable and sustainable
  • Youth and women owned businesses ( preference)
  • Municipalities and entities that require upgrade of the beach area and dam recreational areas including areas around waterfalls
  • Businesses that already have Feasibility Studies and Business Plans
  • Secured site with relevant documentation ( for start-ups) 

Application of the fund

The fund will cover but limited to the following:

  • Equipment (boat building material, fishing material, diving material water flips goggles, skiing gear etc.)
  • Ecotourism products linked to water and river banks.
  • Nature and wildlife tourism products linked to transformation of the sector.
  • Start-up infrastructure ( ferrying boats)
  • Infrastructure upgrade ( beach infrastructure upgrade along the coast including rivers and dams and launching sites )

The following Coastal & Marine categories will be covered but not limited to:

  • Cruise Tours
  • Educational Tours
  • Scuba Diving
  • Snorkelling
  • Surfing
  • Adventure (Beach/coastal)
  • Products for beach tourism
  • Beach front infrastructure
  • Water based activities
  • Nature and wildlife tourism products
  • Community based tourism (coastal and dam areas)
  • Youth programmes (e.g. paddling, diving, )
  • Youth and women owned businesses ( preference)

 Water photography 

1.3 HOSPITALITY AND LAND REFORM 

The restitution programme was established with the purpose of providing equitable redress to victims of racially motivated land dispossession, in line with the provisions of the Restitution of Land Rights Act. This aforesaid land reform process has culminated to the restitution of land in the province and a substantial portion of this land was home to tourism assets which included vibrant and successful lodges, game farms and reserves ect. Therefore the implementation of land reform as means of assisting recipients of tourism assets in owning and sustaining viable tourism businesses, including the development of tourism products on the returned land where sustainable. 

The tourism industry is a services sector and general hospitality is key. Hospitality is then based on the relationship between a guest and a host, wherein the host receives the guest with goodwill, including the reception and entertainment of guests, visitors, or strangers. The hospitality industry covers lodging and dining services. It comprises businesses that provide customers with lodging, prepared meals, snacks and beverages for immediate consumption. It includes both accommodation and food service establishments as the two activities are often combined. 

The Hospitality and Land Reform Fund will be utilised to reduce funding gaps within existing Hospitality and Land Reform Tourism Businesses. The funding will cover 0- R 2 000 000.00 for equipment and infrastructure upgrade and R2 000 000.00 established requiring completion and R 0- R200 000.00 for universal access modification on existing businesses, R 0-R 200 000.00 for furniture by qualifying black owned enterprises.

The fund will focus specifically on: 

  • Facilitate the prioritisation of transformation within the tourism sector
  • 1% Black owned Hospitality and Land Reform tourism businesses that are commercially viable and sustainable
  • Youth and women owned businesses ( preference)
  • Businesses that already have Feasibility Studies and / or Business Plans 

Objectives of the Hospitality and Land Reform Tourism Fund 

  • Encourage the development of innovative and commercially viable tourism businesses
  • Promote ownership by youth and women
  • Promote rural tourism development
  • Stimulate empowerment, development and job creation
  • Facilitate transformation within the tourism sector
  • Stimulate tourism destination development and product diversification
  • Ensure success and sustainability of Tourism Land Reform projects 

Application of the fund

The fund will cover the following: 

  • Infrastructure upgrade
  • Equipment
  • Furniture
  • universal access modification

The following Hospitality and Land Reform categories will be covered but not limited to:

  • Accommodation sector
  • Municipalities

1.4 ADVENTURE TOURISM

Adventure Tourism is an outdoor leisure activity that takes place in an unusual, exotic, and remote or wilderness destination involves some forms of unconventional means of transportation and tends to be associated with low or levels of activity.

The grant will be capped at R0-R200, 000.00 for equipment and R500, 000.00 for infrastructure upgrade and start-up infrastructure by qualifying black owned enterprises.

Objectives of the Adventure Tourism Fund

  • Facilitate the prioritisation of transformation within the tourism sector
  • Encourage the development of innovative and commercially viable tourism adventure activities
  • Promote ownership by youth and women
  • Promote rural tourism development
  • Stimulate empowerment, development and job creation
  • Facilitate transformation within the tourism sector
  • Stimulate tourism destination development and product diversification 

The fund will focus specifically on: 

  • 1% Black owned adventure tourism businesses that are commercially viable and sustainable
  • Youth and women owned businesses ( preference)
  • Businesses that already have Feasibility Studies and Business Plans
  • Secured site with relevant documentation ( for start-ups)

Under this funding call, applications under the Adventure Tourism funding stream will ONLY cover the following:

  • Start-up infrastructure
  • Infrastructure upgrade
  • Equipment (tents, hiking gear, climbing equipment; ropes, body harnesses etc.)

 The following Adventure categories will be covered but not limited to:

  • Skydiving
  • Mountain biking
  • Zip-lining
  • Bridge climbing
  • Mountain climbing
  • Bungee jumping
  • Backpacking
  • Caving
  • Extreme biking
  • Rock climbing 

1.5 TOURISM EXHIBITION AND CONFERENCES 

Exhibitions and Conferences are considered as part of business tourism and one aspect of the industry which has received increasing attention. Exhibitions and Conferences remain a powerful marketing tool for business, particularly for an experiential business in the travel and tourism sector where buyers appreciate face-to-face negotiations. It is one of the most effective platforms to market your brand, with many organisations experiencing a positive return on investment in financial, brand awareness and marketing capacities. 

The Exhibitions and Conferences Fund aims to open up opportunities for small tourism businesses to show case their product offering to potential buyers and also promote province ensuring geographical spread of products. These platforms may include trade exhibitions and conferences that allow access to a variety of international buyers in one place, or organised marketing roadshows and strategic trade missions to engage directly with selected buyers and other strategic partners. 

The funding assistance may vary for each trade engagement supported, funding airfare, accommodation and ground transportation will typically be considered at capped amounts.

The fund will focus specifically on:

  • Black owned small tourism businesses that are commercially viable and sustainable
  • Black owned businesses that have been operating for 3 years
  • Youth and women owned businesses ( preference)
  • Businesses that have demonstrate significant growth 

Objectives of the Exhibitions and Conferences Tourism Fund 

  • To drive sales and grow the customer base of small tourism establishments by providing them with better access to tourism buyers and potential guests.
  • To promote compliance with quality standards and ensure that tourists know what to expect
  • To enhance the experience of visitors to iconic tourism attractions by empowering small businesses 

Application of the fund 

The fund will cover but limited to the following:

  • Accommodation
  • Airfare
  • Ground transportation
  • Travel Insurance

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