The news that government has dropped the requirements for its Covid-19 Tourism Relief Fund from 51% to 30% Black ownership is nothing more than a veiled admission that BBEEE simply is not working. But for government to “save face” they could not completely scrap this requirement.
Although there is no doubt that the change will assist this sector which is reeling from the effects of the uncaring ANC government, lowering the requirement is not enough. If government is serious about ensuring that our travel and tourism sectors flourish, the requirements must be scrapped in their entirety.
During the draconian lockdown in 2020, the Department of Tourism introduced the Tourism Equity Fund, which provided grants to businesses in the tourism and travel sector that had been negatively impacted by the pandemic. The condition for the issuing of such grants was that the businesses had to have at least 51% black ownership.
The discriminatory condition caused hundreds of thousands of businesses in the sector to close, leaving the owners unemployed and millions of employees standing in the unemployment line. This condition alone caused untold hardships to millions of people, many of whom suffer today. Others have left the sector.
I will be submitting official questions to the tourism minister Patricia de Lille on this matter and ask whether she is considering completely scrapping this requirement in future so that all players in the sector can grow and develop without hinderance.
* Manny de Freitas MP, DA tourism spokesperson.
* The views expressed are not necessarily the views of IOL or Independent Media.
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