(Ecofin Agency) - The government of South Africa announced plans to set R200 million ($11.3 million) fund to support tourism and hotel businesses negatively impacted by covid-19.

The fund targets hotels, restaurants, travel agencies and related structures which have been operating for one year and have an annual turnover not exceeding R2.5 million. Beneficiaries will have to prove how they can make use of this resource to cope with the negative impacts of covid-19. They will also be required to pay the salaries of a minimum number of employees over three months.

Of the fund's resources, 70% will be earmarked for black-led businesses. Companies operating in the tourism sector and owned by women, young people and people with reduced mobility will be given priority in the allocation of this funding.

According to the Ministry of Tourism, the suspension of business activities, travel to and from high-risk countries and the closure of businesses recently decided by the government should lead to a decline in the activities of small and medium-sized enterprises in the tourism sector. Recent analyses have indicated that tourism revenues have declined as a result of the pandemic.

Chamberline Moko