Green Tourism Incentive - New Application Window Now Open
We are happy to advise that the Green Tourism Incentive Programme (GTIP) has opened another application window. Window number 9 is open between 25 January and 31 March 2024.
Please see below links to the invitation from the Department of Tourism, the GTIP brochure, and the current application form.
You might recall that we hosted a very insightful webinar with the Department and IDC last year. You are welcome to revisit that and also the Q&A that came out of the meeting - please see below.
GTIP Window 9 Application Invitation
Download the Application Form (WeTransfer Link)
Watch the 2023 GTIP Webinar Recording
2023 WEBINAR QUESTIONS & ANSWERS
Application Windows and Feedback Period
Q - When does the next application window open?
A - Anticipated to open on 1 April 2023, but please keep an eye on the webpage
Q - Is there an extension of the application date?
A - No extension planned, however new window opening imminent
Q - An application was submitted in November 2022 with the energy audit mentioned for February 2023, but no further communication was received.
A - Unfortunately, this may have been a miscommunication – the process is normally to collect applications during the open window and once the window closes, the assessment commences. The process has been refined somewhat to assess the applications during the open window, however, the audit allocations will have to join the queue with those previous window applications awaiting audit allocation. The programme is expediting this as fast as possible.
Q - What is the timeline for phase one? I.e., how long after phase one closes can one expect to have an answer as to whether the application was successful?
A - The idea is that you would know, within days of your completed application being submitted, whether you have been successful. Those who submit all required documents will have got an email that their application will be registered.
Q - After submission of all documents, how long does it take to get feedback? Also, what are the reasons that an application on phase 2, can be declined?
A - Once all required information is provided, the final assessment will be conducted. The programme has monthly adjudication panel meetings, so depending on when it is concluded, within the month, or the next month. Reasons for a decline vary and the programme precludes applicants who are insolvent for example.
Q - This is a great initiative however it is incredibly slow. Response times from the IDC take weeks and one gets the feeling they are understaffed. Are there plans to improve this? A suggestion would be to create an interactive platform where applicants can load documents and see once these have been accepted as well as receive communications on further requirements.
A - Thank you for your proposals – noted!
Audits, Service Providers and Commencing Work
Q - If an application is approved, are you obliged to purchase the equipment/service from GTIP suppliers?
A - No, we do not have a preferred installer/supplier database. It is your responsibility to procure service providers however they must meet the service provider requirements. If you do not have an existing resource efficiency audit on hand, a successful Phase 1 application will have one appointed to you – this will be from the programme’s approved panel.
Q - Will IDC assist in suggesting the installers/ suppliers for Solar?
A - No, they may try to assist with ones that they are aware of or may have provided satisfactory service, but the decision is on the applicant’s part on whom to use
Q - Please share the process of becoming a qualified service provider.
A - A preferred panel for service providers does not exist
Q – Installations have already been done. Can we still apply?
A – The programme will not refund retrospectively
Q - Can work commence if an application has been submitted but no feedback received yet?
A - You will be doing so at risk. It is assumed that you would have done an efficiency assessment. If so, you may submit that with your application for review by our assessors. As a minimum, an assessment submitted would require the following areas to be covered:
- Identified energy and water efficiency opportunities for the establishment.
- Recommendation of energy and water efficiency solutions to be funded by the Programme.
- Projected costs for implementing identified resource efficiency solutions.
- Energy and water savings to be achieved as a result of implementing the recommended solutions.
- The basis for arriving at the savings to be achieved.
Applications & Requirements
Q - Does the applicant have to perform the audit first before applying for the funds?
A - No you do not – this is what Phase 1 seeks to achieve unless you have an existing audit that has been done recently – this can be submitted for review by our assessors
Q - Occupancy levels were seriously affected by the Pandemic. Is it not preferable to look at these numbers before the Pandemic?
A - This was certainly a prerequisite in prior Windows post-Covid; however, many establishments have picked up within the last year with more recent information being more readily on hand and reasonable base for the assessors
Q - Does maximum R1m mean max grant value or max system/installation value?
A - It is the maximum grant. It is still applicable and has not been adjusted.
Q - The Agri sector has higher turnover thresholds for EME and QSE. Does the lower tourism code apply and no other codes?
A - The Tourism Codes are applicable.
Q - Is the R5m turnover a minimum or maximum?
A - EME R0 -R5m / QSE >R5m<R45m
Q - What about Tour Operators, working out of or renting offices?
A - Tour operators are unfortunately excluded
Q – There is no option for NPCs or NPOs on the application form under the type of entities and it states that "Uncompleted forms will not be looked at". How does the programme include NCPs or NPOs?
A - Queries like this may be directed to gtip@idc.co.za. The application form serves as a checklist, however, the programme does look at the information provided. In the interim, it is suggested that you select (pty) and make a note in the email.
Q - Can one submit two applications? If one has two operations in different parts of the country but under one parent entity?
A – It can only be one application however details for both entities need to be included i.e., 2 x occupancy and 2 x utility bills
Grading
Q - If TGCSA grading has been delayed and no certificate issued yet, will a letter from TGSA suffice?
A - Yes, it will
Q - Homestay accommodations in townships are not graded yet but are recognised but the Department of Tourism and local tourism authorities. Can they apply?
A - Star Grading is a requirement of the GTIP. Please engage TGCSA to ascertain their requirements for grading and discuss what needs to be done to be considered for grading.
B-BBEE
Q - Does a lower B-BBEE score mean reduced chances or monetary value?
A - The Tourism BEE codes are used for the assessment and based on the level, the score will be determined
Q - Please expand on the Impact of B-BBEE criteria on funding
A - The better your rating is, the higher the score, and the higher the grant portion – there are more elements to the scoring model so not possible to quantify
General
Q - Are any funds left for phase 2?
A - Yes
Q - Last week IDC confirmed that National Empowerment Fund is now handling this program.
A - This was unfortunately a miscommunication – IDC handles GTIP
Q - Do you have any insight into the possible rebates alluded to in the SONA address and how these 2 programs intersect
A - No
Q - This sounds like a great initiative. What has been the success rate thus far?
A - Significant approvals however implementation has been slow, but Covid also happened – activity is picking up.
