Applications open for Green Tourism Incentive Programme (South Africa)

Dear Successful Entrepreneur!

The Green Tourism Incentive Programme (GTIP) is an initiative of the Department of Tourism. Its key objective is to encourage and assist privately owned tourism enterprises in adopting responsible tourism practices by installing solutions to reduce their energy and water consumption and costs.

Focus Areas

The focus is on sustainable energy and water efficiency solutions, including:

• Renewable energy generating systems (solar and wind where appropriate);

• Energy and water efficient equipment (including solar-based water heaters, heat

• pumps and Heating, Ventilation and Air Conditioning (HVAC) systems;

• Lighting (solar & LED);

• Online metering, sub-metering devices and the related subscription fees;

• Energy and water efficient appliances (washing machines and dishwashers, where warranted);

• Water efficiency systems (dual flush toilets systems; urinals; shower heads; aerated taps);

• Water sourcing systems (rainwater harvesting and greywater recycling);

• Development and implementation of resource management policies (including linen and

• towel reuse, and guest and staff awareness programmes); and

• Other efficient solutions (gas stoves, solar cookers, pool pumps, efficiency devices, etc.)

• Boreholes and desalination plants are excluded.

Programme Approach

• The GTIP covers the full cost for a new resource efficiency audit as well as the full cost of 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 cap of R1 million.

• The balance is to be covered by the applicant (either through their own resources or from other reputable funding institutions including the IDC

• The grant will not cover the VAT portion for VAT-registered enterprises; the applicants will cover this 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

The application process has two phases:

Phase 1: Energy and water efficiency audit and identification of appropriate solutions.

Phase 2: Application for funding to implement solutions.

Eligibility Criteria Application for Energy and Water Efficiency Audit

• Be an existing or a new privately-owned tourism-specific establishment (accommodation, facilities and attractions) that provides services to tourists as its direct clients. Suppliers and intermediaries are not eligible;

• New establishments to be at least at advanced stages of development where delay and completion risk are minimal (minimum requirements include a detailed business plan that is fully funded, and an implementation plan – completion date of the projects should not be longer than 9 months from the date of applying for funding, approved building plans and relevant clearance certificates may be required, where applicable);

• Be an Exempt Micro Enterprise or a Qualifying Small Enterprise in line with the size categorization of the Tourism Broad-Based Black Economic Empowerment Scorecard as follows:

  • Enterprise Size Category and Annual Turnover

  • Exempt Micro Enterprises (EMEs): Total annual revenue below R5 million

  • Qualifying Small Enterprises (QSEs): Total annual revenue between R5 million and R45 million

• Must commit to a resource efficiency audit or review of an existing audit by an assessor appointed by the GTIP;

• Must provide 12 months of historic energy and/or water consumption data (in the form of utility bills) and occupancy records to conduct the resource efficiency audit;

• Must commit to obtaining quotations from at least three potential service providers/ installers that meet the requirements of the GTIP for the identified energy and water efficiency solutions identified during the audit process;

• All applicants are required to complete an application form with the required documentation (including business registration documents; valid tax compliance PIN and latest annual financial statements) to be allocated an assessor who will conduct an energy and water efficiency audit.

Please click here for more information: https://www.idc.co.za/green-tourism-incentive-programme/

To Your Success

Your Funding Connection Team

Landline: +27 (0)31 761 8677 or Cellphone +27 064 550 7052

Headquarters: 2 Old Main Road, Hillcrest Office Park, Hillcrest, KZN 3610

Satellite Offices: Johannesburg, Benoni, Soweto, Empangeni, Cape Town, Summerset West, Port Elizabeth and more to come