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Tourism Equity Fund Under the Spotlight

June 3, 2021

Department of Tourism

The tourism department is to defend the court challenge regarding the constitutionality of the criteria that is used for the processing of applications for the Tourism Equity Fund (TEF).

The tourism minister, Mmamoloko Kubayi-Ngubane, confirmed this during the tourism department’s 2021/22 Budget Vote Speech in the national council of provinces.

The minister indicated that “Afriforum and Solidarity have made a court application challenging the legality and rationality of the 51% black owner/managed qualification criteria for the fund”.

The High Court in Pretoria recently interdicted the processing of payments until the case is concluded.

“This has dealt a serious blow to the previously disadvantaged entrepreneurs who are now at risk of losing potential deals due to this delay”, she said.

The minister declared that the “TEF, together with a restructured Tourism Transformation Fund, will continue to form part of the tools through which we will transform the sector”.

Other developments highlighted include:

• marketing efforts to ignite demand especially for domestic travel to be intensified – collaboration with provinces a priority in order to align, coordinate and remove duplication of effort and resources;
• consolidation of marketing agencies underway; and
• Advisory Panel to review policies and provide new policy proposals – to complete work by August 2021.

In a statement on the TEF, the tourism department declared that the Fund is a “necessary intervention, within the constitutional values and imperatives for the creation of an equal society and addressing the imbalances of our country’s past”.

The department confirmed its ongoing commitment to “advancing the transformation agenda through creating equitable opportunities to realise an inclusive and revived tourism economy”.