By Charmaine Ndlela
A black woman-owned hotel in White River, Mpumalanga, has received more than R3.5 million in blended government and development-finance funding to expand the business, upgrade facilities, and support job creation.
Hotel 247 received a R1.65 million grant through the Tourism Transformation Fund, a R1.65 million senior loan from the National Empowerment Fund, and R242,600 through the Alternative Energy Fund.
The investment was officially unveiled on Friday during the launch of the hotel’s refurbished restaurant, which can accommodate up to 140 patrons.
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Deputy Tourism Minister Maggie Sotyu said at the launch that access to finance remained one of the biggest barriers facing emerging tourism businesses.
“Mechanisms such as the Tourism Transformation Fund are important to enable entrepreneurs to establish, expand, and improve their businesses,” she said.
According to the Department of Tourism, the investment created five additional permanent jobs and 15 temporary jobs during the renovation phase. The hotel currently employs 29 people.
Formerly known as Forever White River, Hotel 247 is a three-star establishment with 52 en-suite rooms, a 140-seat restaurant and bar and conference facilities that can accommodate up to 200 delegates.
Businesswoman Khosi Mthalane acquired the property in 2021, during the Covid-19 pandemic, before rebranding and repositioning it as Hotel 247.
Mthalane invested her own capital and experience in the property at a time when the tourism industry was still battling the economic fallout from the pandemic.
Sotyu said government support for tourism businesses should increasingly be aimed at creating owners and investors rather than simply widening participation in the sector.
“We speak often about transformation in tourism. But transformation cannot simply mean having more people participating at the edges of the tourism economy. It must increasingly mean owning assets, owning businesses, accessing markets, leading, and building wealth through tourism,” she said.
The Tourism Transformation Fund is administered by the NEF and is aimed at supporting black-owned tourism businesses through a combination of grants, debt financing and equity contributions.
Sotyu said the value of the funding should be measured by whether it translated into viable businesses and economic activity.
“Funding must become assets. Assets must become businesses. Businesses must become jobs, procurement opportunities, market access and sustainable local economic activity,” she said.
The department said the fund currently has 43 actively approved projects at various stages of completion and operation.
Sotyu said White River’s position in the Lowveld tourism economy gave Hotel 247 an opportunity to benefit from visitors travelling to attractions including the Kruger National Park, God’s Window and the Panorama Route.
She said encouraging visitors to remain in the area for longer could spread tourism spending across hotels, restaurants, transport operators and other local businesses.
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“Every additional night creates economic opportunity. Every additional meal creates economic opportunity. Every additional experience creates economic opportunity,” Sotyu said.
She said the next challenge for Hotel 247 would be to translate the investment into higher occupancy, stronger revenues, repeat business and improved market access.
“Our responsibility does not therefore end when funding is approved or when a ribbon is cut. The next chapter must be about sustainability.”
She said entrepreneurs receiving government support still needed to bring their own investment, planning and resilience to their businesses.
“Entrepreneurship still requires courage, preparation, discipline and persistence,” she said.
“Transformation is not simply about creating beneficiaries. It is about building entrepreneurs and owners,” Sotyu said.
