TOURISM SUPPORT PROGRAMME (TSP)

Local and foreign owned Entities are eligible to apply for EIP incentives. Entities are defined as Companies (including Divisions & Branches), Close Corporations, and Co-Operatives.

New or Expanding entities may apply. Existing Sole Proprietors and Partnerships that are unable to apply are permitted to convert to a CC or Pty and apply for EIP incentives.

The Tourism project must be situated outside of the 3 main Metropolitan areas of Johannesburg, Cape Town and Durban (eThekwini). However projects located in "marginalized areas" (where unemployment is higher than 25%) within these metros will be eligible to apply. Please note that the Cape Town CBD is a qualifying area in terms of the unemployment rule. Download aerial photograph of CBD in PDF format (3MB)

ELIGIBILITY OF TOURISM PROJECTS.

The Tourism project must be at least a Level 4 BB-BEE contributor achieving a score of 65 and above on the Generic Scorecard in terms of the Codes of Good Practice for Broad-Based BEE. Entities that have been in existence for less than 12 months or have a turnover of less than R5m are automatically deemed to be "Level 4".

Investments of up to R5m in qualifying assets will be classified as "Small Projects" and will enjoy a 30% grant payable over 3 years. The payment of the grant in the 3rd year will be subject to an incentive per employee Rand value figure.

Investments of between R5m and R 30m in qualifying assets will be classified as "Medium Projects" and will enjoy a grant of between 15% and 30%. This grant is calculated on a regressive scale and is payable over 2 years. This total value of this grant cannot exceed R 4.5m

Investments of greater than R 30m in qualifying assets will be classified as "Large Projects" and will enjoy a grant of 15%. This grant is payable over 2 years and cannot exceed R 30m.

The following types of Tourism projects may apply:

Accommodation Services

Passenger Transport Services

Recreation and Entertainment Services:

Qualifying Assets include:

Furniture and Equipment (owned or capitalized financial lease) at cost, excluding any office furniture and office equipment.

Owned / Rented Land and Buildings.

Tourism vehicles (owned or capitalized financial lease) at cost

Second-Hand Furniture & Equipment and Tourism Vehicles can be regarded as qualifying assets provided they meet certain conditions.

Expansion Projects:

The entity will be eligible to apply for an expansion if they will be increasing their current Capacity as well as the current historical cost value of Furniture and Equipment by at least 30% by no later than the end of Year 1 of their claim period.

The EIP cash grant is Tax-free.