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TRAVEL TRADE TO BENEFIT FROM NEW TOMSA FUND

Date published 09.05.2016

FUNDS from the Tourism Levy South Africa are to be used to finance new tactical trade destination marketing initiatives under a new agreement between the Tourism Business Council of South Africa and South African Tourism.

The development is part of the new memorandum of understanding between Tourism Levy South Africa (TOMSA) and SA Tourism, which governs management of the levy.

TOMSA levies already contribute towards SA Tourism’s marketing budget and account for approximately 10 percent of the organisation’s annual budget. However, as the source of the tax, the travel industry will benefit more directly from the fund.

Mmatšatši Ramawela, Chief Executive Officer of the TBCSA, said the model would enable special initiatives and add more value to current marketing activities.  “Given the challenges we have experienced over the past two years and the ongoing economic difficulties, it is crucial we do all we can to boost tourist trade activity… Beyond branding and PR elements, we want to ensure that we drive growth in terms of putting bums in seats and beds.”

The projects will be agreed with SA Tourism on an annual basis, the TBCSA explained, while decisions about which initiatives to embark on will be approved by representatives from SA Tourism, the TBCSA and TOMSA boards.

• See the June issue of TIR for more on this story.


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