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Johannesburg - The Development Bank of Southern Africa's (DBSA) new tourism investment strategy will prioritise tourism projects locally and in the Southern African Development Community (SADC) region, it said on Monday.
"Given the current global economic downturn, the DBSA is well positioned as a leading development finance institution with a counter-cyclical mandate to invest in tourism infrastructure at a time when commercial finance institutions may take a more cautious view," said DBSA tourism specialist, Kate Rivett-Carnac in a statement.
The tourism projects will have five themes - anchor projects, clusters of small businesses that together achieve scale, community partnerships, transport infrastructure and projects with the ability to draw new or underserved markets.
"Each of these themes will support the overarching principle of developing tourism destinations, which is at the core of the new strategy," Rivett-Carnac said.
In terms of project size, the DBSA would consider medium to large sized tourism projects - being greater than R20m in South Africa, and exceeding $10m in SADC countries - although smaller ventures, such as community guest houses, might also be considered.
According to Rivett-Carnac, the new strategy would also support the development of municipal tourism plans and other capacity building measures on a cost-sharing basis.
"The overriding theme and requirements for these projects should be 'catalytic', this means the ventures in which DBSA invests must seek to grow tourism in their area and create a positive multiplier effect," she said.
Projects should also be BEE-compliant, create jobs, be environmentally sensitive, and promote overall economic and social development, Rivett-Carnac added.
She said the DBSA did not usually take an equity stake in projects.
"However, where applicants do not have experience or expertise in the tourism sector, the DBSA may advise on an appropriate operator who can assist with access to markets and operational direction, at least in the initial phases of the business," she said.
- Sapa