COLLABORATION FUND
The TOMSA Collaborative Fund was established in 2016 to fund strategic and impactful industry projects that support tourism growth and transformation.
BACKGROUND
Tourism Business Council of South Africa (NPC) (“TBCSA”) / TOMSA and South African Tourism (SAT) agreed to ring-fence 15% to set up a TOMSA Collaborative Fund to be utilised for tactical tourism projects which would grow both international tourist arrivals into South Africa and boost domestic travel.
While our primary objective will always be to grow the sector, particularly through increased international and domestic travel, the sector has a vital role to play in the socio-economic development of our country. Given the increasingly complex and volatile global environment and the country’s worsening socio-economic challenges such as poverty, unemployment, crime, and lack of economic growth, a re-orientation of the fund’s strategic focus necessitated the inclusion of a more developmental role through the prism of the dynamic tourism sector.
The TOMSA Collaborative Fund thus intends to play an enabling and catalytic role in solving not only sector challenges but also harnessing growth opportunities for the ultimate benefit of the sector and the country.
FUNDING FOCUS AREAS
The Collaborative Fund supports high-value, high-impact strategic projects focusing on five key streams:
Tourism Growth and Development Investment
(Including destination marketing, route development, and innovation)
Tourism can drive prosperity in destinations, creating jobs and small business opportunities and increasing the flow of money into the economy. It can also incentivise and help finance infrastructure investment and encourage the preservation of rural ecosystems and cultures. Areas of funding include:
- Destination marketing initiatives – New initiatives not funded by National or provincial DMOs
- Trade Show support not currently supported by National or Provincial DMOs – TOMSA Levy Collectors are given priority
- Joint Marketing agreements to increase both international and domestic tourism (First time and repeat visitors)
- Initiatives to facilitate a welcome environment at ports of entry into South Africa
- Business tourism, including high-level strategic support for the Meetings, Incentives, Conventions and Exhibitions (colloquially known as "MICE") segment of the tourism industry to increase business tourist arrivals into the country
- Route Development and Airlift strategies
- Advocacy, Influence and Lobbying initiatives in strategic area’s such as Tourism Visa reform, tourism safety and regulatory enablement.
Tourism Community beneficiation
(Community-based development and transformation)
Tourism has a strong potential to improve local community life quality by alleviating poverty, broadening information access, improving facilities and infrastructure, and opening new and diversifying employment. Community-based tourism (CBT) ensures that local communities have full ownership and management of the tourism experience so that the economic benefits of tourism stay within their community. The development of community-based tourism needs to be strengthened by community capacity to develop their tourism into more sustainable and competitive destinations.
Local communities can also play a key role in tourism safety and are instrumental in dealing with the challenge of crime and grime within our destinations. Furthermore, communities continue to play a role in sustainable tourism as custodians of the ecological surroundings; they, too, can offer innovative and sustainable solutions to issues facing the industry.
Tourism Capacity Building
(Skills, training, and SMME development)
Capacity-building is essential to ensure the success of economic transformation, especially for the vitality and sustainability of the tourism sector for inclusive growth and poverty eradication. As we continue to recover from the pandemic, there is a crucial need for up-skilling and re-skilling of personnel in the tourism sector, which are the fundamental building blocks of a resilient tourism sector that needs to be prepared to meet the future job market. The purpose of enhancing and consolidating skills, competencies and abilities is to meet the requirements of the market demand and realize the evolution of the tourism sector.
Sustainable Tourism
(Skills, training, and SMME development)
Sustainability principles refer to the environmental, economic, and socio-cultural aspects of tourism development, and a suitable balance must be established between these three dimensions to guarantee tourism’s long-term sustainability. Thus, sustainable tourism should:
- Respect the socio-cultural authenticity of host communities, conserve their built and living cultural heritage and traditional values, and contribute to intercultural understanding and tolerance.
- Ensure viable, long-term economic operations, providing socio-economic benefits to all stakeholders that are fairly distributed, including stable employment and income-earning opportunities and social services to host communities, and contributing to poverty alleviation.
GENERAL FUNDING CRITERIA
- Proposals must be submitted by TOMSA-accredited levy contributors or tourism developmental organisations, Destination Marketing Organisations (DMO), Community Tourism Organisations (CTOs), Regional Tourism Organisations (RTO), Local Tourism Organisations (LTOs) working with municipalities, not-for-profit organisations (NPOs), and businesses interested in undertaking tourism-related initiatives that support tourism product development or overall sector development.
- Projects must be aligned with funding focus areas.
- Projects must be developmental in nature with demonstrable socio-economic benefits.
- Projects that are feasible and sustainable, as assessed by TBCSA’s due diligence processes on behalf of the TBCSA.
- Projects that promote innovation, sustainability, inclusivity, transformation, equity and equality in the sector.
PRE-QUALIFICATION & COMPLIANCE
The following will be considered in the pre-qualification of any applicant before the proposal is adjudicated:
- Certified copy of Companies and Intellectual Property Commission (CIPC) registration documents (if applicable).
- Current SARS Tax Clearance certificate (If applicable)
- Submit audited financial statements together with the audit reports issued by independent auditors - (3 years). If there are no financial statements or audited reports, a letter explaining the absence of such.
- VAT Registration Certificate if registered
- Provide proof of registration with the Unemployment Insurance Fund (UIF) and the Workmen’s Compensation Fund, including a letter of Good Standing – Compensation Fund (COIDA), where applicable.
- A valid certified copy of the B-BBEE certificate is required, where applicable.
- Declaration of interest by directors of the applicant where applicable (CIPC)
NB* Some of the pre-qualification criteria may not be relevant depending on the type of project and the institution requesting funding.
FUNDING LIMIT PER PROJECT
- The project's annual funding limit will be R5 million. Should a need arise for more or further funding, a formal request accompanied by a formal proposal must be submitted to the Collaborative Fund Committee.
- If a project is deemed worthy through the application process, The Collaborative Fund Adjudication Committee has the discretion to approve funding in excess of the limit mentioned above.
NB* Project proposal approvals will be limited to the availability of funds
FUNDING EXCLUSIONS
- Projects that benefit only Private Citizens or Private Enterprise.
- Projects that may include illegal activities
APPLICATION PROCESS
1. Request for Proposals
- TBCSA will release a Request for Proposal (RFP) that will remain open throughout a year unless if the fund is depleted • Project proposals must be emailed to collabfund@tbcsa.travel • The adjudication Committee will meet periodically to review funding proposals.
- Project proposals must be emailed to collabfund@tbcsa.travel
- The adjudication Committee will meet periodically to review funding proposals.
Supporting documents to be submitted for application funding?
- Actual Proposal, including funding requested
- Executive Summary, including the need/problem that the project intends to address
- Declaration of interest
- If a similar project was previously implemented, independent evidence of impact
- Community / SME benefit
- Township & rural tourism development (WHERE APPLICABLE/IF ANY)
- Contribution to destination growth/competitiveness/attractiveness
- Contribution to overall tourism transformation
- TBCSA strategic alignment
- Indication of whether this project has been submitted and or approved by TBCSA/TOMSA before. Indicate previous TBCSA/TOMSA funding where applicable.
- Any other document that the applicant may deem important.
2. Pre-Screening
- A project feasibility study with a clear business case with a background of the individuals involved in the project (Experience, level of expertise and project role)
- Full overview of project methodology and outcomes
- A project must promote the collection of the Tourism Levy where possible.
- To have an impact on communities that are adjacent to where it will be implemented
- Project to promote transformation, inclusivity, sustainability, equity and equality.
- Financial implications must be clearly stated and transparent (Detailed Budget, other funding, breakdown of all costs, including salaries and consulting fees)
- Evidence of collaboration with or support from other industry players
- How the project will be managed & evaluated during & after funding (Impact indicators/metrics), including Project Timeline & Measurement Plan
- The period of time for which the proposal is valid.
- Marketing and Communication Plan
Proposals that meet pre-screening will proceed to a full due diligence. At this stage, the feasibility of the project will be evaluated.
3. Due Dilligence
At the due diligence stage, all proposals will be assessed for processes, systems, and capabilities will be tested against the supporting documentation. More information may be requested at this stage.
4. Adjudication
After a successful due diligence process, proposals will be considered for approval by the Collaborative Fund committee. The committee’s decision will then be communicated by email.
Evaluation Criteria
- Regulatory Compliance
After a successful due diligence process, proposals will be considered for approval by the Collaborative Fund committee. The committee’s decision will then be communicated by email.
2. Relevance
Is the proposed project aligned to TBCSA Strategic Priorities?
Is the proposed project/programme addressing an industry need/challenge/threat/opportunity?
Is the project/programme developmental i.e., responding to a socio-economic issue?
3. Effectiveness
Is the Project/Programme Plan coherent and based on SMART principles of goal setting?
4. Viability
Will the project/programme be able to meet its objectives within the constraints of available resources. In other words, a viable project is one that can be completed successfully given the time, money, and other resources that are available.
5. Sustainability
Are factors such as environmental, economic, social, and technical impacts demonstrable?
6. Impact
Is the theory of change and impact pathway demonstrable?
5. Awarding of Funding
- Once a project proposal has been awarded funding, a contract between TOMSA and the project owner will be drawn up detailing the terms and conditions, and the reporting, monitoring, and evaluation of the project will be finalised.
- The submission of a proposal will not create any legitimate or other expectation that the proposal will be accepted or will be successful. The Collaborative Fund Adjudication Committee will, at its sole, absolute, and exclusive discretion, make the final decision on the proposals. The decision by the Collaborative Fund Adjudication Committee will be final and binding, and no correspondence will be entered into with respect to it.
NB: If you do not receive correspondence to your application within 30 days of submission, kindly consider your submission unsuccessful.
Any enquiries relating to the request for proposals may be directed to Ntokozo@tbcsa.travel.
Download the TOMSA brochure to see some of the previously funded projects by the Collaborative Fund.