April 7, 2020

Tourism Relief Fund Offers Assistance to SMMEs to Aid COVID-19 Lockdown


These are the requirements for SMMEs in obtaining relief funds as a result of the COVID-19 lockdown.

The Tourism Relief Fund provides once-off capped grant assistance to Small Micro and Medium-Sized Enterprises (SMMEs) in the tourism value chain to ensure their sustainability during and post the implementation of government measures to curb the spread of COVID-19 in South Africa.
Capped at R 50 000 per entity, grant funding can be utilised to subsidize expenses towards fixed costs, operational costs, supplies and other pressure costs items.

Guided by the Tourism Broad Based Black Economic Empowerment (B-BBEE) Codes of Good Practices approved by the Minister of Trade and Industries in 2015 (in line with the BBBEE Act No.53 of 2003), the Tourism Relief Fund is administered in line with the objectives of Economic Transformation, and our vision to ensure sustainable and inclusive tourism development.
Categories eligible to apply for the Tourism Relief Fund include the following:
• Accommodation establishments: Hotels, Lodges, Bed and Breakfast (B&B’s), Guest Houses and Backpackers.
• Hospitality and related services: Restaurants (not attached to hotels); Conference venues (not attached to hotels), Professional catering; Attractions
• Travel and related services: Tour operators; Travel agents; Tourist guiding; Car rental companies; and Coach Operators.

  1. FUND TERMS AND PRIORITY AREAS
    1.1. The relief funding is a once off grant capped at R50 000 per supported entity – funds will subsidize expenses post COVID – 19 lockdown period operations re-commencement activities and can be utilised on expenses towards fixed costs, operational costs, supplies and other pressure costs items.
    1.2. The relief shall be distributed in a spatially equitable manner to ensure that SMMEs in all provinces benefit.
    1.3. At least 70% of beneficiaries shall be businesses that are Black owned as per the Amended B-BBEE Sector Codes.
    1.4. At least 50% of beneficiaries shall be businesses that are women owned.
    1.5. At least 30% of beneficiaries shall be businesses that are youth owned.
    1.6. At least 4% of beneficiaries shall be businesses that have met a target of at least 2%
    employment of persons with disabilities.
  2. QUALIFYING CRITERIA
    2.1 Proof of valid registration with Companies and Intellectual Property Commission (CIPC).
    2.2 Turnover must not exceed R2.5 million per year.
    2.3 Must have a valid tax clearance certificate or PIN.
    2.4 Proof of compliance with the minimum wage requirements.
    2.5 Priority will be given to businesses on LEVEL 1, 2 and 3 according to the Amended B-BBBE Codes.
    2.6 Must provide proof of UIF registration for employees employed by the business.
    2.7Be an existing tourism-specific establishment as outlined in the scope of application
    (suppliers and intermediaries are not eligible).
    2.8 Must be in existence for at least one business financial year.
    2.9 Proof that the relief is required as a result of the impact of COVID-19.
    2.10 Must submit latest statements of financial position, financial performance and cash flows.
    2.11 Must submit 6 months bank statements.
    2.12 Grading certificate or proof of application to be graded for accommodation
    establishments.
  3. NON- QUALIFYING ACTIVITIES
    3.1. Fast food and take away restaurants, nightclubs, bars, gaming and gambling venues,
    3.2. Franchised restaurants and those attached to tourism facilities,
    3.3. Establishments wholly or partially owned by Government will not be considered
  4. FUND APPLICATION PROCESS
    4.1 SMMEs can submit funding applications by filling a form accessible online at www.tourismrelief.gov.za, or by email at covidrelief@tourism.gov.za
    4.2 Application forms must be submitted with the following pre-qualifying/compulsory documents:
    4.2.1 Complete application form.
    4.2.2 Registration certificate issued by CIPC.
    4.2.3 Certified ID copies of Directors/members.
    4.2.4 Six (6) months bank statements.
    4.2.5 Latest Annual financial statements – Income, Cash flow statements and
    statement of financial position.
    4.2.6 Business profile – 2(5)-page max. 4.2.7 Relevant industry certification – depending on business focus area.
    4.2.8 Latest UIF/U-filing contribution certificate.
    4.2.9 Indicate the intended use of the resources – budget breakdown (to be adhered to in the expenditure).
    4.2.10 Grading certificate or proof of application to be graded.
    4.2.11 Certificate of B- BBEE or Affidavit.
    4.2.12 Tax clearance certificate or PIN.
    4.2.13 Medical certificate for Persons with Disability where applicable.