1. PROPOSED TOURISM INCENTIVE PROGRAMME Portfolio Committee on Tourism 05 September 2014 Department of Tourism www.tourism.gov.za 1

2. 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 2

3. 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. 3

4. 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). 4

5. Proposed TIP Phased Approach Phase 3 Dynamic process - continuous programme improvement and expansion Phase 1Phase 2 Market access programmes SRI sustainability support Tailored product development and investment support (e.g. energy efficiency, universal access, etc.) 5

6. 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

7. 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 7

8. 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. 8

9. Thank you 9