IDC Green Tourism Incentive Programme (GTIP) 2024 (R1 Million Grant Funding) | How to Apply Now

By
Kelvin Ejeta
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The South African Industrial Development Corporation (IDC) has announced the Call for Applications for the Green Tourism Incentive Programme (GTIP) 2024.

IDC Green Tourism Incentive Programme

The programme is spearheaded by the Department of Tourism and aims to propel privately-owned tourism enterprises towards embracing responsible tourism practices by implementing solutions that not only diminish energy and water consumption but also substantially cut down operational costs.

About Green Tourism Incentive Programme (GTIP)

The Green Tourism Incentive Programme otherwise referred to as  GTIP, was launched in 2017 and underwent a strategic overhaul in 2021, amplifying its impact on the tourism sector. This overhaul ushered in additional benefits for enterprises committed to sustainable management and responsible usage of electricity and water.

Steered by the Industrial Development Corporation (IDC), the GTIP offers financial support in the form of grants, with a noteworthy cap of R1 million to qualifying small and micro tourism enterprises.

Benefits of the Green Tourism Incentive Programme

  • Resource Efficiency Audits: The GTIP covers the entire cost of both new and existing resource efficiency audits. Through its approved panel, the GTIP appoints assessors to conduct audits, identifying optimal solutions for implementation. This ensures that enterprises are equipped with the most effective strategies to enhance sustainability.
  • Grant Funding: The GTIP offers grant funding on a sliding scale. Enterprises can receive support ranging from 50% to 90% of the total cost for approved energy and water efficiency solutions, all the way up to the maximum grant amount of R1 million.
  • Financial Dynamics: The GTIP requires applicants to cover the remaining balance through either their own resources or reputable funding institutions, including the IDC. It’s a nuanced model that strikes a balance, fostering financial responsibility while facilitating sustainability initiatives.
  • VAT Considerations: The grant doesn’t cover the VAT portion for VAT-registered enterprises, non-VAT-registered enterprises find relief as the GTIP covers this aspect. However, there’s a thoughtful caveat: if a non-VAT registered enterprise later registers for VAT and claims-related costs, repayment of the VAT portion becomes mandatory.
  • Direct Funding to Service Providers: The GTIP ensures efficiency by directly disbursing grant funding to service providers and installers. This approach minimizes bureaucratic hurdles, allowing enterprises to swiftly execute their sustainability projects.

Application Process

The application process for the Green Tourism Incentive Programme (GTIP) has two phases:

Phase 1: Energy and Water Efficiency Audit

  • Eligible enterprises must download the application form and complete Section A, along with Annexure A.
  • Submission of the original Excel format is crucial.
  • The completeness of Section A, accompanied by the relevant supporting documents, is imperative for consideration.
  • Incompleteness will result in exclusion from the energy and water efficiency audit.

Phase 2: Application for Funding

  • Enterprises that complete Phase 1, and Phase 2 progress to Phase 2.
  • Demonstrating economic viability is paramount for funding consideration.
  • Completion of Section B in the application form, along with the necessary supporting documents, is a prerequisite.
  • Any incomplete submissions will be ineligible for funding.

For more details, please visit the IDC website at https://www.idc.co.za/green-tourism-incentive-programme/

Application Deadline

The application deadline for IDC Green Tourism Incentive Programme (GTIP) 2024 is set at March 31, 2024.

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