Question NW884 to the Minister of Tourism

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28 May 2020 - NW884

Profile picture: Chetty, Mr M

Chetty, Mr M to ask the Minister of Tourism

(1)Whether her department will offer any form of Covid-19 financial or other relief to small businesses; if not, why not; if so, what are the relevant details; (2) whether the Covid-19 financial or other relief will only be allocated to qualifying small businesses according to the Broad-Based Black Economic Empowerment Act, Act 53 of 2003, as amended; if not, what is the position in this regard; if so, (a) on what statutory grounds and/or provisions does she or her department rely to allocate Covid-19 financial or other relief only to small businesses according to the specified Act and (b) what form of Covid-19 financial or other relief, if any, will be made available to other small businesses?

Reply:

1. Whether her department will offer any form of Covid-19 financial or other relief to small businesses; if not, why not; if so, what are the relevant details;

The Department of Tourism has put aside R200 million under the banner of Tourism Relief Fund to provide 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 R50 000 per entity, grant funding can be utilised to subsidise expenses towards fixed costs, operational costs, supplies and other pressure cost 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 B-BBEE Act No.53 of 2003, as amended), 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; and Attractions
  • Travel and related services: Tour operators; Travel agents; Tourist guiding; Car rental companies; and Coach Operators.

SMMEs can submit funding applications by filling a form accessible online at www.tourismrelief.gov.za, or by email at covidrelief@tourism.gov.za. The application window for the Fund will close on 31 May 2020.

(2) Whether Financial relief will only be allocated to qualifying small businesses according to the

B-BBEE amended Act 53 of 2003, If not – what is the position in this regard?

Yes, B-BBEE Amendment Act and Tourism Codes of Good practice will apply.

(a) On what statuary grounds and /or provisions does she or her department rely to allocate Covid -19 Financial or other relief only to small businesses according to the specified Act?

Section 10 of the B-BBEE Act makes codes of good practice mandatory: “[e]very organ of state … must apply any relevant code of good practice issued in terms of this Act in … determining criteria for the awarding of incentives, grants and investment schemes in support of broad-based black economic empowerment.

(b) What form of Covid -19 financial or other relief, if any will be made available to other small businesses?

So far, the department only has Tourism Relief Fund.

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