Tourism Minister Derek Hanekom has defended the recently launched tourism incentive programme‚ particularly the intention to subsidise tourism establishments to become independent of the power grid.
An amount of R180-million has been allocated to the tourism incentive programme in 2015-16‚ of which R50-million will be used for a pilot programme to ensure that world heritage sites‚ national parks‚ botanical gardens and community-based tourism projects have a renewable and reliable source of energy.
The plan is to allow private sector tourism establishments to apply for a retrofit subsidy which would be staggered, with larger enterprises getting a smaller amount and smaller ones getting more. In a briefing to MPs on Friday‚ he insisted on the need for tourists to experience a continuous‚ quality experience, which load-shedding does not allow.
Hanekom’s comments were made in response to criticism by ANC MP Lusizo Makhubela-Mashele‚ who said during a meeting of parliament’s tourism committee that retrofitting was the responsibility of other departments. She said money allocated for this part of the incentive programme could be better spent elsewhere and objected to the model of the programme as being undesirable.
Her comments were not shared by other MPs. Hanekom insisted on the prerogative of the Department of Tourism to initiate programmes and said its officials had been in discussions with the committee for a long time on the needs of the sector. He said the incentive programme would contribute to a more competitive‚ sustainable‚ energy-secure tourism sector and assist in increasing market access for operators.
“We believe retrofitting is the right route to follow‚” said Hanekom.
Having their own source of energy would reduce the vulnerability of tourism establishments to disruptions in electricity supply. Chief director Bernard Meyer added that tourism establishments were battling with the rising cost of electricity.
The department would work with developmental finance institutions to develop financing instruments to allow the private sector to apply for loans for the portion of the retrofit that was not subsidised‚ Meyer said.
About R40-million of next year’s allocation will be used to subsidise the costs of participation in international exhibitions and marketing roadshows which are important for concluding transactions and package deals.
The target audience for the subsidy will be smaller enterprises with a turnover cap of R35-million a year.
“We believe the return on the investment will be significant‚” Meyer said.
A further R10-million will be used for assisting tourism establishments with the cost of getting assessed and graded. An additional 10% rebate would be offered for transformed businesses. R40-million will go to community-based tourism operations for operational assistance‚ training‚ skills development‚ managerial support and market access.
Finally‚ R60-million will be used for a pilot project to help iconic sites to operate optimally. The first three in a pilot phase will be the Walter Sisulu Botanical Garden in Gauteng‚ Kruger National Park and the Robben Island Museum. — BDlive
Hanekom backs tourism plan
An amount of R180-million has been allocated to the tourism incentive programme in 2015-16‚ of which R50-million will be used for a pilot programme to ensure that world heritage sites‚ national parks‚ botanical gardens and community-based tourism projects have a renewable and reliable source of energy.
The plan is to allow private sector tourism establishments to apply for a retrofit subsidy which would be staggered, with larger enterprises getting a smaller amount and smaller ones getting more. In a briefing to MPs on Friday‚ he insisted on the need for tourists to experience a continuous‚ quality experience, which load-shedding does not allow.
Hanekom’s comments were made in response to criticism by ANC MP Lusizo Makhubela-Mashele‚ who said during a meeting of parliament’s tourism committee that retrofitting was the responsibility of other departments. She said money allocated for this part of the incentive programme could be better spent elsewhere and objected to the model of the programme as being undesirable.
Her comments were not shared by other MPs. Hanekom insisted on the prerogative of the Department of Tourism to initiate programmes and said its officials had been in discussions with the committee for a long time on the needs of the sector. He said the incentive programme would contribute to a more competitive‚ sustainable‚ energy-secure tourism sector and assist in increasing market access for operators.
“We believe retrofitting is the right route to follow‚” said Hanekom.
Having their own source of energy would reduce the vulnerability of tourism establishments to disruptions in electricity supply. Chief director Bernard Meyer added that tourism establishments were battling with the rising cost of electricity.
The department would work with developmental finance institutions to develop financing instruments to allow the private sector to apply for loans for the portion of the retrofit that was not subsidised‚ Meyer said.
About R40-million of next year’s allocation will be used to subsidise the costs of participation in international exhibitions and marketing roadshows which are important for concluding transactions and package deals.
The target audience for the subsidy will be smaller enterprises with a turnover cap of R35-million a year.
“We believe the return on the investment will be significant‚” Meyer said.
A further R10-million will be used for assisting tourism establishments with the cost of getting assessed and graded. An additional 10% rebate would be offered for transformed businesses. R40-million will go to community-based tourism operations for operational assistance‚ training‚ skills development‚ managerial support and market access.
Finally‚ R60-million will be used for a pilot project to help iconic sites to operate optimally. The first three in a pilot phase will be the Walter Sisulu Botanical Garden in Gauteng‚ Kruger National Park and the Robben Island Museum. — BDlive
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