Industrial Development Financial Assistance (Incentives)
Tourism Support Programme (TSP)
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Minister Davies Announces the Termination of the Tourism Support Programme
The Minister of Trade and Industry, Dr Rob Davies, has announced the termination of the administration of the Tourism Support Programme (TSP) by the dti as from 01 October 2012.
Davies says the decision to transfer the administration of the TSP from the dti to the National Department of Tourism was taken by Cabinet and is in line with the Industrial Policy Action Plan.
"The decision was taken by Cabinet early this year and is outlined in the Industrial Policy Action Plan 2011/12 - 2013/14 to transfer the tourism policy work and consequently the tourism incentive administered to the National Department of Tourism. This means that the National Department of Tourism will in the future also develop and implement an incentive that is better aligned with the current strategic priorities of the tourism sector',"said Davies.
Minister also said that projects that have already been approved, those with outstanding claims, and those that were received prior to the transfer of the programme will not be affected as the dti will finalise all claims relating to approved and outstanding applications.
"The TSP is being transferred from the dti in the most optimal way to ensure that sufficient notice is given to industry without creating an influx of applications; sufficient budget is retained within the dti to ensure that the TSP contingent liabilities are met, whilst availing funding in the future for NDT to develop and implement an incentive that is better aligned with current strategic priorities of the tourism sector," added Davies
The Tourism Support Programme, a sub programme of the Enterprise Investment Programme (EIP) was introduced in 2008, replacing the Small and Medium Enterprise Development Programme (SMEDP) tourism programme, and will expire in 2014. The incentive offers a grant of between 15% and 30% of qualifying investment costs for establishing new and expanding existing tourism operations in South Africa.
The incentive provides for qualifying investment costs of furniture, equipment, vehicles, land and buildings and improvements of up to R200m. The maximum incentive is R30m and is payable over three years.
Since inception until 31 March 2012, a total of 545 applications were approved with an investment value of R6.8 billion and an incentive value of R1.1 billion. It is projected that 9 054 jobs will ultimately be created as a result of the supported projects.
Sidwell Medupe-Departmental Spokesperson
Tel: (012) 394 1650
Mobile: 079 492 1774
Issued by: The Department of Trade and Industry
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