The Department of Tourism established the Green Tourism Incentive Programme (GTIP) five years ago, to provide grant funding to qualifying tourism businesses to help them implement resource efficiency interventions. Interested businesses are encouraged to submit their applications before 28 February 2023, when the application window closes.
The purpose of the programme is to encourage and support private sector tourism enterprises to adopt responsible tourism practices, specifically focused on improved water and energy efficiency. This is to help the sector limit its greenhouse gas emissions and build greater resilience and adaptive capacity in the face of climate change.
Positive feedback for the GTIP outcomes
A number of businesses have gone through the process and have praised it for the significant benefits it has yielded. Mr Louw Allan from the Gauteng four-star graded Cullinan Diamond Lodge says, “This is a wonderful and worthwhile opportunity for any establishment. Currently, it helps a lot with loadshedding and enables us to give a proper service to our clients.”
After the projected payback period, Cullinan Diamond Lodge anticipates that the changes they have made will reduce their operational costs and improve their profitability and competitiveness.
Ms Wilhemina Kutumela from Pimville Guest House and Tours in Soweto has also been able to better manage her property’s energy consumption, and says, “The benefit is that arriving guests come to a well-lit establishment and feel at home. We now receive repeat business and the occupancy has gone up. We have been encouraging other colleagues to apply when the window opens again.”
About the Programme
The programme is managed by the Industrial Development Corporation (IDC) on behalf of the Department. All applications and approvals are managed by the IDC. The GTIP broadly offers the following benefits to qualifying tourism enterprises:
- The GTIP covers the full cost for a new resource efficiency audit as well as the full cost for reviewing an existing audit
- The GTIP will appoint an assessor from its approved panel to conduct resource efficiency audits to determine the best possible solutions to be implemented. The assessor will also review existing audits where applicable
- The GTIP offers grant funding on a sliding scale from 50% to 90% of the total cost of the approved energy and water efficiency solutions up to a capped amount of R1 million.
- The balance is to be covered by the applicant (either through own resources or from other reputable funding institutions including the IDC)
- The grant will not cover the VAT portion for VAT registered enterprises; this will be covered by the applicants as they may claim it back
- The GTIP will cover the VAT portion for non-VAT registered enterprises; in the event of the enterprise registering for VAT and claiming such costs related to the project, the enterprise will be expected to pay back the VAT portion to the GTIP
- The grant funding will be paid directly to service providers/installers
Qualifying enterprises may now implement projects in phases in order to better manage their cash flow over a two-year project implementation period.
For more information, visit www.tourism.gov.za and www.idc.co.za/green-tourism-incentive-programme/.
Cover image by Nuno Marques and in-article image by Luis Tosta both on Unsplash
