Prioritised Tourism Investment Projects In South Africa

PRIORITISED TOURISM INVESTMENT PROJECTS IN SOUTH AFRICA May 2018

FUNDING PARTNERSHIPS (INCENTIVES and services) 1 1. 2. 3. 4. 5. 6. 1 1 1 2 2 2 Tourism Incentive Programme (TIP) Tourism Transformation Fund (TTF) Industrial Development Corporation (IDC) Small Enterprises Funding Agency (SEFA) The Small Enterprise Development Agency (Seda) InvestSA (One Stop Shop) TOURISM INVESTMENT PROJECTS 4 GAUTENG 1. Suikerbosrand Nature Reserve (SNR) - SEDIBENG 2. Maropeng Hotel Expansion, Wellness and Spa Development 3. New Restaurant/Café and Children’s Play Area at Maropeng 4. Roodeplaat Dam Nature Reserve 4 4 5 5 6 KWAZULU-NATAL 1. Nonoti Beach Resort Development (Coastal Marine Tourism (CMT) Project) 2. Blythedale Coastal Resort (CMT Project) 3. Durban Point Waterfront (CMT Project) 8 8 9 9 Mpumalanga 11 1. Blyde Cable Car Project 11 2. Bourke’s Luck Hotel Project 12 NORTH WEST 1. Bloemhof Dam development 2. Taung Dam and Nature Reserve Development 3. Molopo Nature Reserve 14 14 15 16 EASTERN CAPE 1. Hole in the Wall Resort 17 17 Mkambati Nature Reserve - KwaZulu-Natal

FUNDING PARTNERSHIPS (INCENTIVES and services) 1. Tourism Incentive Programme (TIP) TIP aims to stimulate tourism development that is sustainable, inclusive and improves the competiveness of our destination and the entire tourism sector, through: Driving sales and growing the customer base of small tourism establishments by providing them with better access to tourism buyers and potential guests. Promoting compliance with quality standards and ensuring that tourists know what to expect by helping establishments to get graded. Enhancing the experience of visitors to iconic tourism attractions by improving facilities at these sites. Reducing operating costs and making tourism facilities more sustainable by installing renewable energy sources. Support Programmes International Market Access Support Programme – facilitate access to specific tourism export markets to stimulate the growth of enterprises. Department of Tourism The South African government offers an array of incentive schemes to stimulate and facilitate the development of sustainable and competitive enterprises in the tourism sector. A variety of these incentive schemes seek to support the development or growth of commercially viable and sustainable enterprises through the provision of either funding or tax relief. The incentives include: Tourism Grading Support Programme – improve conformity to quality standards to enhance the overall visitor experience and improve SA’s destination competitiveness through encouraging participation in the tourism grading system for tourism establishments (accommodation and meetings, incentives, conferencing and exhibitions [MICE]). Green Tourism Incentive Programme (GTIP) - to encourage privately-owned tourism enterprises to move towards cleaner and renewable energy sources. GTIP is administered by the Industrial Development Corporation (IDC). 2. Tourism Transformation Fund (TTF) The Tourism Transformation Fund (TTF) is an incentive scheme that focuses specifically on financial support for black investors and communities investing in capital projects in the tourism sector. The Department of Tourism signed a Memorandum of Agreement with the National Empowerment Fund (NEF) on 28 March 2017 to create and manage a dedicated capital investment funding mechanism to drive transformation in the tourism sector in a more direct and impactful manner. 3. Industrial Development Corporation (IDC) IDC through, Light Manufacturing and Tourism Strategic Business Unit (TSBU) - fund companies within the tourism sector that need funding for new projects, expansions or refurbishment. The Tourism SBU primarily invests in the accommodation sub-sector, focusing on business hotels in fast growing 1

areas. In South Africa, IDC focus on high impact, sustainable, tourist attractions that provide niche product offerings. 4. Small Enterprises Funding Agency (SEFA) 2 Direct Lending Products - provides directly to Small and Medium sized Enterprises as well as co-operatives operating in all sectors of the economy, from R50 000 to R5 million. Wholesale Lending Products - provides facilities (debt/equity) to intermediaries, joint venture, partnerships (specialised funds) and other collaborative relationships to extend SEFA’s reach of making funding available to small businesses across South Africa. Prioritised Tourism Investment Projects in South Africa 5. The Small Enterprise Development Agency (Seda) Seda offers entrepreneurs a helping hand through business consulting, training and referrals to specialist service providers. Business advisors help entrepreneurs identify what they need to succeed, whether it be skills, contacts or funding, and help them to access it. 6. InvestSA (One Stop Shop) South Africa has established an inter-departmental clearing house One InvestSA (One Stop Shop) for investment and investment promotion. The initiative is part of the government’s drive to improve the business environment by lowering the cost of doing business as well as making the investment process easier. The InvestSA (One Stop Shop) will be the focal point of contact with the government with regards to regulatory matters, registration, permits and licensing, thereby reducing red tape and other institutional hurdles that investors may face. InvestSA (One Stop Shop) services for investors include: Investment information: opportunities, incentives, regulations, policies, strategic sectors. Investment marketing: local and foreign marketing initiatives. Business facilitation: visas, investment missions, intergovernmental co-ordination, relocations, business introductions, black economic partnerships, financing and incentives. Outward investment: connections to other African investment promotion agencies, project financing, deal structuring. InvestSA (One Stop Shop) has been recognised for its work in attracting investments to South Africa with the CFI.co Best Investment Promotion Agency Africa 2016 award. InvestSA (One Stop Shop) works with provincial investment promotion agencies to source opportunities for investors that meet local and national development goals. Since its inception, InvestSA (One Stop Shop) has made strides in promoting packaged investment projects and facilitating direct foreign investment. The CFI.co award follows the United Nation Conference on Trade and Development (UNCTAD) Investment Award for success in attracting investment which InvestSA (One Stop Shop) received in July 2016.

Cradle of Humankind, Maropeng - Gauteng Department of Tourism 3

TOURISM INVESTMENT PROJECTS GAUTENG 4 Project Title/Name Suikerbosrand Nature Reserve (SNR) - SEDIBENG Authority Gauteng Department of Economic Development and Tourism through Cradle Dinokeng Entities Location Sedibeng, Gauteng Province Type of Development Renovation, upgrading and maintenance of visitor facilities: Accommodation (chalet and caravan park); conference & catering facilities; waterpark with indoor and outdoor pools; restaurants and picnic areas Prioritised Tourism Investment Projects in South Africa Project Description SNR is declared as a protected area in Gauteng. It offers environmental education, outdoor recreation services, cultural-historical services, conferencing facilities and self-catering accommodation. It is positioned as a destination for nature-based tourism, a position that it achieved and maintained for a number of years before its decline Approximate Cost R115 million ( 9.26 million) Current Status Feasibility Study done Type of Partnerships Public Private Partnership (PPP) Contact Details Mr Glen Ndlovu Tel: 27 11 085 2516 / 27 82 551 7637 Email: glen.ndlovu@gauteng.gov.za

Maropeng Hotel Expansion, Wellness and Spa Development Authority Cradle of Humankind World Heritage Site (entity of the Gauteng Provincial Government) Location Maropeng, West Rand Disctrict Municipality, Gauteng Province Type of Development Maropeng Hotel Expansion, Wellness And Spa Development Project Description Expansion of the existing Maropeng Hotel from 24 to 64 rooms, and inclusion of a wellness and spa area Approximate Cost R200 million ( 16.11 million) Current Status Repositioning Report and Infrastructure Concept Report, and Architectural Drawings completed Type of Partnerships Concession Contact Details Mr Glen Ndlovu Department of Tourism Project Title/Name Tel: 27 11 085 2516 / 27 82 551 7637 Email: glen.ndlovu@gauteng.gov.za Project Title/Name New Restaurant/Café and Children’s Play Area at Maropeng Authority Cradle of Humankind World Heritage Site (entity of the Gauteng Provincial Government) Location Maropeng, West Rand, Gauteng province Type of Development Construction of a new restaurant/ café with a children’s play area Project Description Construction of a new restaurant/ café with a children’s play area Approximate Cost R12 million ( 967 164.76) Current Status Project is ready for implementation. All planning work completed, including detailed designs, exhibition content, tender documentation with Bill of Quantities Type of Partnerships Concession Contact Details Mr Glen Ndlovu Tel: 27 11 085 2516 / 27 82 551 7637 Email: glen.ndlovu@gauteng.gov.za 5

Project Title/Name Roodeplaat Dam Nature Reserve Authority Dinokeng Project (entity of the Gauteng Provincial Government) Location Tshwane, Gauteng Province Type of Development New infrastructure development and upgradesof exixting infrasturcture at the Roodeplaat Nature Reserve Project Description Roodeplaat Dam Nature Reserve offers environmental education, outdoor recreation services, conferencing facilities and self-catering accommodation. It is positioned as a destination for the domestic emerging market and large school groups. Investment required is for the following; 6 Development of a mass recreation and environmental education facility; with budget overnight accommodation venue (camping and caravan park); a day visitor area with mass picnic /braai facilities with children’s playground Prioritised Tourism Investment Projects in South Africa A waterfront incorporating retail, entertainment, restaurant facilities, riverboat cruise operation with skating rink A hotel with a conference facility and Visitor Interpretation Centre for environment preservation and management Approximate Cost R150 million ( 12.08 million) Current Status Planning phase: An approved Environmental Management Plan was conducted to guide development of the site Type of Partnerships Concessions Contact Details Mr Glen Ndlovu Tel: 27 11 085 2516 / 27 82 551 7637 Email: glen.ndlovu@gauteng.gov.za

Beach Horse Riding - KwaZulu-Natal Department of Tourism 7

KWAZULU-NATAL Project Title/Name Nonoti Beach Resort Development (Coastal Marine Tourism [CMT] Project) Authority Trade & Investment KwaZulu-Natal (KZN) Location Nonoti Beach, KwaDuduza (Stanger) Type of Development Beach Resort Project Description Proposed community owned beach resort. Located in KwaDukuza Municipality, KwaZulu-Natal. 3-4 star hotels to accommodate a total of 822 beds with sea views. Swimming pools and walkways that 8 Prioritised Tourism Investment Projects in South Africa lead to the beach, restaurant facilities and conference facilities Approximate Cost R2.5 billion ( 201.49 million) Current Status Most critical technical processes have been done and approved Type of Partnerships Investment partners, funders and resort operators Contact Details Ms Thokozani Chili: Acting General Manager; Investment Promotion Trade and Investment KwaZulu-Natal Tel: 27 31 368 9629 / 27 78 802 9765 Email: thokozani@tikzn.co.za