BusinessLive reports that tourism minister Mmamoloko Kubayi-Ngubane has insisted that support for distressed firms and establishments in the sector would be guided by empowerment (B-BBEE) codes.
Her approach could disqualify many companies from accessing government funding to mitigate the effect of the coronavirus. The crisis has brought tourism activity to sudden stop across the globe as governments implement extreme measures to curb the spread of the disease. President Cyril Ramaphosa announced a 21-day lockdown in March. Kubayi-Ngubane said on Tuesday as a first phase to support small and medium-sized players in the sector, a R200m Tourism Relief Fund had been established to provide a one-off capped grant assistance to ensure sustainability of the sector. The fund targets tourism establishments such as resort properties; bed and breakfasts (B&Bs); guest houses; lodges and backpackers; restaurants (not attached to hotels); conference venues (not attached to hotels); car rental companies; tour operators and travel agents. Capped at R50,000 per entity, the grant funding can be used to subsidise expenses towards fixed costs, operational costs, supplies and other cost items. Kubayi-Ngubane said disregarding BEE requirements would be tantamount to breaking the law. But, DA MP and trade and industry spokesperson Dean Macpherson has argued that BEE requirements should be suspended during the crisis.
- Read the full original of the report in the above regard by Bekezela Phakathi at BusinessLive
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