SA TOURISM GETS THE LION’S SHARE OF TOURISM BUDGET
National Tourism Minister Ms. Tokozile Xasa delivered the 2017/18 Tourism Budget Speech Vote to Parliament on Tuesday, 23 May. The Minister announced that the total amount budgeted for the year will be R2.1bn, which is the same amount that was budgeted for in the financial year 2016/17. The Budget will be allocated as follows:
R1.1bn of the total annual budget allocated to SA Tourism
R1.1bn (53%) of the total R2.1bn budget will be deployed towards increasing South Africa’s global tourism market share and growing the domestic tourism market in a manner that promotes inclusive growth. With the Budget, SA Tourism will also be mandated to prioritise black enterprises in their marketing efforts. Just over half of the Budget will be dedicated to the marketing of South Africa, both to a global and local target audience.
Included in the marketing budget, growth in the international market will be driven through the establishment of a R90m ‘Bidding Fund’. This fund is intended to strengthen conversion mechanisms in traditional markets and expand to new markets in Africa, Asia and Middle East. Furthermore, R110m will be allocated to attracting more business travel and R224 to infrastructure development.
Small and Medium Enterprises set to benefit from a R120m Transformation Fund
An amount of R120m will be allocated to grant funding and debt financing for black-owned small and medium (SME) sized tourism businesses. The Minister noted that SME access to funding is a key challenge in the sector and therefore, the allocation of this fund aims to kick-start many black-owned SMEs.
The remainder of the budget
The remainder of the budget (R1bn) will be allocated to Tourism Incentives; Skills Development; Destination Development and Enterprise Development.
- Click here to read the full budget speech by Tourism Minister Ms. Tokozile Xasa