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Tourism SBU INFORMATION AND AWARENESS WORKSHOP Johannesburg Tebatso Matlala

Tourism SBU INFORMATION AND AWARENESS WORKSHOP Johannesburg Tebatso Matlala. 18 March 2014. Introduction. Sectors covered by SBU:. Accommodation : hotels, guest houses, game lodges (efficiency of room size currently under review)

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Tourism SBU INFORMATION AND AWARENESS WORKSHOP Johannesburg Tebatso Matlala

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  1. Tourism SBU INFORMATION AND AWARENESS WORKSHOPJohannesburgTebatso Matlala 18 March 2014

  2. Introduction Sectors covered by SBU: Accommodation: hotels, guest houses, game lodges (efficiency of room size currently under review) Niche Tourism: adventure & sports tourism, business tourism, attractions (including theme parks and natural attractions), health tourism. Exclusions: stand alone restaurants (unless linked to an attraction), casinos and gambling facilities, property development, timeshare/fractional developments. SBU Approach to development of these sectors • Aligning activities with industry goals as indicated in National Tourism Sector Strategy and IPAP2/NGP • Proactive development of projects in subsectors through identifying potential projects, project scoping, pre-feasibility and feasibility studies. • Assessment and funding of applications as received • Support for the dti programs in some subsectors (Arts and Crafts, backpackers, avitourism) • Active participation and sponsorship of industry events (HICA, Sports Exhibitions, Imvelo)

  3. Financing Products • IDC offers a wide array of financial instruments, including: • Equity • Quasi-equity • Commercial debt • Guarantees • These may be provided as a single facility or in combination • R3 mminimum loan amount and financial contribution of between 40%-50% from the shareholders

  4. HIGH DEVELOPMENT RING FENCED FUNDS Development Funds Department IDC Business Support Unit R 100 m R2bn €47m R 1 bn R10bn Isivande Women’s Fund (IWF) Unemployment Insurance Fund (UIF) GRO – E - SCHEME Transformation and Entrepreneurial Scheme (TES) Risk Capital Facility (RCF)

  5. Consider funding of start-ups, expansions and refurbishments • Project must demonstrate significantdevelopment impact • Securityis tailored to the transaction and may include personal suretyship, corporate guarantees, bonds over fixed and movable assets, pledge and cession of shares • Comprehensivebusiness planmust be submitted. Financing Criteria

  6. Financing Criteria • Focused management team with ability to adapt to market forces • Product specifications to be in line with intended grading with upfront input from management and marketing company • Approved buildings plans and building cost estimates prepared by a QS • Clearly defined marketing strategy in terms of product offering, target market, key success factors • Financialcontribution of at least 40%from the shareholders

  7. Review of IDC’s progress in the industry to date

  8. Industry Environment

  9. Constraints to Industry Development

  10. High-Level Sector Development Strategies

  11. Thank you Industrial Development Corporation 19 Fredman Drive, Sandown PO Box 784055, Sandton, 2146 South Africa Telephone (011) 269 3000 Facsimile (011) 269 3116 E-mail callcentre@idc.co.za

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