1. Tourism Incentive Programme Tourism Indaba – 06 May 2016 Durban MPUTLE SELOANE Department of Tourism www.tourism.gov.za Slide 1

2. More employment Enhanced visitor experience More competitive destination Energy security, lower input costs Enterprise growth Quality standards Enhanced iconic attractions Efficient and renewable energy sources Desired outcomes Slide 2

3. Pilot phase focus areas Market access support: Subsidise access to new markets Tourism grading support: Lower the cost of tourism grading Destination development: Invest in improved facilities at strategic attractions Renewable energy: Retro-fit facilities with renewable energy systems Slide 3

4. Market access support (1) Partial reimbursement of certain costs Participation in predetermined international marketing platforms Capped amounts on airfare, accommodation and exhibition or participation fees Objectives: – Unlock untapped market potential and introduce new players to the market – Reduce cost burden on tourism enterprises to access markets – Facilitate enterprise growth and expansion to stimulate job creation and sector transformation Slide 4

5. Market access support (2) Slide 5 List of Platforms SupportedNumber of companies Supported Average amount of support per company Asia Roadshow4R 90 500.00 ABAV10R 71 886.00 IMEX (USA)5R 110 156.00 WYSTC22R 39 000.00 IBTM4R 111 088.00 Vakantiebeurs15R 67 884.00 EMITT3R 39 196.00 IMEX (Frankfurt)2R 151 088.00 ATM5R 111 622.50 ATWS10R 66 390.00

6. Market access support (3) Process: Published list of marketing platforms to be supported with regular calls for applications Technical assessment against eligibility and qualifying criteria in programme guidelines Approval, contracting and participation Post intervention reporting and reimbursement of agreed amounts Target Group: Small and medium sized inbound tourism enterprises Majority South African and Privately owned Formally Registered Enterprises (CC, PTY Ltd., Cooperatives & Community Trust) Annual turnover not exceeding R 45 000 000 Demonstrate experience in selling South African based packages Compliant with SARS Compliant with Tourism BBBEE codes Have public liability cover insurance 6Slide 6

7. Market access support (4) List of ShowDatesStatusCall for application IMEX (Frankfurt)19-22 April 2016Closed Arabian Travel Market25-28 April 2016Closed Asia RoadshowJune/July 2016OpenTo be issued Abav Travel ShowAugust/Sept 2016OpenJune 2016 Study Travel Alphe Conference (ST Alphe)2-4 September 2016OpenJuly 2016 Adventure Travel World Summit19-22 September 2016OpenJuly 2016 WYSTC20-23 September 2016OpenJuly 2016 IMEX (USA)18-20 October 2016OpenAugust 2016 IGTM14-17 November 2016OpenSeptember 2016 IBTM29 Nov-01 Dec 2016OpenSeptember 2016 VakantiebeursJanuary 2017OpenNovember 2016 EMITTJan/Feb 2017OpenNovember 2016 MITTMarch 2017OpenJanuary 2017 Slide 7

8. Tourism grading support (1) A structured and incremental system of rebates on annual assessment fees paid to the Tourism Grading Council 30% rebate on 1st assessment 35%, 40%, 45%, 50% respective rebates on 1 st, 2 nd, 3 rd, and 4 th re-assessment Continuous 50% loyalty rebate on 5 th and subsequent re-assessment Additional 10% transformation rebate Objectives: – Greater conformity to quality standards through wider participation in the Tourism Grading system – Enhance visitor experience and improve destination competitiveness Slide 8

9. Tourism grading support (2) Process: Application for rebate upon receipt of the star grading from the TGCSA Technical assessment against eligibility and qualifying criteria in programme guidelines Adjudication, approval, and reimbursement Target Group: – Existing TGCSA members and newly graded establishments – Particular focus placed on small–and medium-sized accommodation and meeting facilities – Operate as a recognised legal entity (preferably a South African registered business e.g. CC, (Pty) Ltd, Co-operative, Community Trust) – Sole Proprietor and Partnerships are also accepted – Be in compliance with the SARS Slide 9

10. Tourism grading support (3) Slide 10 TGSPNUMBER No of applications received206 No of applications approved139 No of applications rejected9 No of withdrawals14

11. Tourism grading support (4) Slide 10 PROVINCE NUMBER OF ESTABLISHMENTS SUPPORTED Eastern Cape15 Free State2 Gauteng28 KwaZulu Natal23 Limpopo8 Mpumalanga14 North West9 Northern Cape2 Western Cape38 Total139

12. Destination Enhancement and Development (1) Development assistance grant for projects in which the department is already involved Focus on strategic icon attractions and community owned projects Objective: – Enhance strategically important destination areas and icon attractions Slide 13

13. Destination Enhancement and Development (2) Slide 14

14. Renewable Energy Retro-fitment (1) Subsidise the retro-fitment of tourism facilities with renewable energy systems to enhance the visitor experience Pilot phase not open to private sector - Focus on state owned enterprise Objectives: – Alleviate pressure on the grid and ensure reliability of electricity supply – Reduce input cost for tourism operations – Reduce the sector’s carbon footprint – Confirm our status as a leading responsible tourism destination 14 Slide 15

15. Renewable Energy Retro-fitment (2) Pilot phase focus on state-owned destination areas: – World Heritage Sites – National Parks – Botanical Gardens Private Sector programme for 2016/17: – To be done in partnership with IDC Retrofitment benefits: Tourists - uninterrupted visitor/tourist experience Enterprise – lower input cost goes straight to bottom line Country – less pressure on grid, competitive edge 15 Slide 16

16. Slide 17 More information available on the Department’s website www.tourism.gov.zawww.tourism.gov.za Email enquiries can be directed to tipenquiries@tourism.gov.za or telephone 0860 121 1929tipenquiries@tourism.gov.za