‘Our individuals’ nonetheless largely marginalised by tourism trade, minister instructed

The new Tourism Equity Fund of R1 1.2 billion consists of grants and debt financing.

• To benefit from tourism, residents areas visited by tourists need to be helped to become owners in the industry.
• This was one of the issues that Tourism Minister Mmamoloko Kubayi-Ngubane raised during a Parliamentary Committee briefing.
• The briefing looked at the new Tourism Equity Fund, which aims to transform the industry.

While tourist buses regularly visit historic areas such as the Bo-Kaap in Cape Town and take photos, residents only benefit if they can become owners of the tourism industry, Tourism Minister Mmamoloko Kubayi-Ngubane told parliament on Tuesday.

She was part of a delegation to brief the Parliament’s Tourism Portfolio Committee on the new R1 1.2 billion tourism equity fund announced by President Cyril Ramaphosa in January this year. The fund includes grant financing and debt financing.

The aim is to encourage 51% black ownership companies to participate in the tourism industry in an economically viable and sustainable manner. Beneficiaries include businesses in rural areas and communities to help fight poverty and inequality. The focus will include women, young people and people with disabilities.

Committee member Faiez Jacobs (ANC) told the minister that, in his view, there are many tourism-related activities happening across the Cape every day, but “our people” remain largely marginalized.

“Tourist buses come to Bo-Kaap in Cape Town every day, but ‘our people’ are like animals in [a] Zoo. Everyone takes photos of them and learns about their slave history and Muslim history, but they are not the owners of tourism in our region. We can say the same thing about areas on the Cape as we do in Langa, Swellendam and others, “he commented.

“We want to make sure the Tourism Equity Fund is accessible and manageable, and not just ticking targets. We need to make sure we are helping our marginalized communities ensure that the bureaucratic process doesn’t exclude those flagged for the fund. It’s better to give. ” A little money for more people than a large sum for just a few, “said Jacobs.

He agrees with the minister that the tourism industry in South Africa needs to change.

Can’t stay “lily white”

“It cannot stay ‘lily white’ but must encompass all cultures, including the development of township and village tourism, to bring people to these areas and ensure that transformation takes place,” he said.

Tourism committee member Hlanganani Gumbi (DA) said it was important to cut red tape for businesses in the tourism industry and those looking to get involved. He suggested that tourism businesses should be classified for free – which the committee has called for in the past – and that support be given to those who try to enter the industry with tax breaks. In addition, he believes that “proper policing” in tourist areas would put the financial burden on businesses to fall back on private security.

Violet Sizani Siwela (ANC), Chair of the Portfolio Committee for Small Business Development, stated during the briefing that the problem of transformation in tourism must include the elimination of “middlemen and exclusivity”. It is very important for them to support the beneficiaries of the Tourism Equity Fund in accessing the market.

Committee member Pebane Moteka (EFF) said the transformation in the tourism industry is “a disruption to those who are in a comfort zone and benefit from apartheid”. In his view, the Tourism Equity Fund’s requirements do not favor those looking to enter the industry and leave him wondering how this fund would differ from what he believes have not been previously rendered.

In particular, he has a problem with the requirement to provide 12 month bank statements, which many people in risk areas are unlikely to be able to do.

“Money not intended for BMWs or houses”

“The government cannot be run like a private bank. Think of the people who have been turned away by banks,” said Moteka.

Kubayi-Ngubane responded to committee members’ questions that they should keep in mind that the Tourism Equity Fund is “only Rl 1.2 billion”.

“This is just a tip of the iceberg compared to the enormous demand in the tourism industry. We can’t just give money. We want people to take responsibility. We want people who are serious about their business and not.” [those] Who will take the money and buy a big BMW or a big house, “declared the minister.

“So we’re going to give part of a grant and help them get part of a loan. With the fund, we are introducing the beneficiaries of the bank. The fund is very well designed and is mentored by the Small Enterprise Finance Agency (SEFA) supports those entering the industry. We are responsive to really ensure the transformation. Let the facility be implemented in terms of requirements and we can see what lessons we learn. “

SEFA will provide quarterly reports on the launch of the fund and there is an accounting mechanism in place that allows the Ministry of Tourism to take on a supervisory role.

“We appreciate the support of all South Africans of all races in this regard and the door is open to white companies that understand the importance of transforming the tourism industry,” concluded the Minister.