Where does the money go?

The funds generated by the Stellenbosch Tourism Levy is administered in a separate non-profit company called Stellenbosch Publicity and Marketing [SPM]. All funds are kept in an interest-bearing trust account.

How is the money spent?

Money is allocated to marketing actions undertaken in Stellenbosch, on a project by project basis, after a project plan and budget has been approved by the board of SPM.

Will the money be used for salaries?

A maximum of 7,5% of all funds generated through levy contributions may be spent on the administration of the entity. Administration costs will therefore have to be kept to a minimum.

Is it compulsory?

You, as a tourism business owner, join this scheme on a voluntary basis. A contract is entered into between yourselves and SPM and may be cancelled as per the terms of the agreement. While the contract is in force, you undertake to pay over the levies collected each month, by the 15th of the following month. This costs you nothing, except a little extra admin, but can make a huge contribution to help grow the visitor numbers in this area.

But what if I am already a member of TOMSA?

The TOMSA levy is used for contributions to the marketing programmes of SA Tourism. It is very difficult to measure the impact of this spending on Stellenbosch. By becoming a collector of Stellenbosch Tourism Levies, you know that the contributions of visitors to our region directly benefit the marketing of Stellenbosch as a tourist destination. You can be both a TOMSA and SPM collector of tourism levies.

Can the establishment earn BBBEE points for the SPM levies?

SPM is a level 4 BBBEE contributor, and you can allocate your spend to the Procurement element when preparing for your audit. You can request a copy of our affidavit from SPMadmin@stellenboschpm.co.za.

Why a separate entity?

It is important that levy funds do not fall within the general budget of the DMO (Destination Marketing Organisation) for a number of reasons. Funds must only be used for marketing, not operational expenses. By allocating funds only to approved projects, maximum effectiveness is ensured. Each project will be subject to agreed outcomes and must be properly researched and motivated.

How do I know how the money was spent?

SPM produces an Annual Report and audited financial statements which will be made available at the AGM.

How are the affairs of SPM managed?

SPM has a management board consisting of directors who bear the responsibility for management and direction of the company. The directors are appointed at the AGM and any contributing member can avail themselves to be nominated as a director of the board. The board will evaluate and approve projects for implementation, investigate desired marketing activities and see to the smooth running of the company.

How do I pay the levies over?

You will receive a remittance advice from SPM at the beginning of each month, to record details of levies collected the previous month. This must be completed and submitted together with proof of EFT into the trust account of SPM, no later than the 15th of that month.

How should I implement this in my business?

You have 2 options – you can decide what works best for your business. If your rates state “excluding tourism levy” then you simply add this as an item to your invoices. You may find it easier to calculate rates that include the 1,15% levy. Ensure that your quotations and rate sheets indicate if the rate is inclusive or exclusive of the levy. Levies should be calculated on the B&B rate excluding extras. Most Property Management Systems have the functionality to add a tourism levy.

How do I show it on my client invoices?

Levies should be displayed as “Tourism Levy” on client invoices.

Why 1,15% tourism levy?

The SPM company is registered for VAT and therefore the Stellenbosch Tourism Levy has to include VAT.

What about Visit Stellenbosch membership?

If your entity collects at least double the cost of the Visit Stellenbosch membership fee in Stellenbosch Tourism Levies in a financial year, the cost of your VS membership fee will be paid by SPM on your behalf for the following year.