Question NW2526 to the Minister of Tourism

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16 December 2020 - NW2526

Profile picture: Sithole, Mr KP

Sithole, Mr KP to ask the Minister of Tourism

Whether there are any plans to invest in tourism subsidies to encourage domestic demand as some of the industry’s biggest market countries have been categorised as high risk and therefore banned from leisure travel into the Republic; if not, what contingency plans are in place, beyond the already distributed relief fund, to support the industry in the event of a second wave of Covid-19 infections; if so, (a) what is the budget allocation for the subsidies and (b) will she furnish Mr K P Sithole with the (i) details of how subsidies will be allocated and (ii) criteria for selecting successful applicants?


(a)-(b) (i) and (ii)

There is neither a policy decision nor a plan to subsidise domestic travel, however engagements with the sector aimed to encourage responsible pricing that would stimulate increase in domestic leisure travel. There is also no additional financial relief measure specific to the sector at this stage owing to the constraints in the fiscal environment. However, tourism businesses are encouraged to make use of the R200 billion credit guarantee scheme/facility that was setup between the Reserve Bank, commercial banks and the National Treasury.

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