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bi-monthly
HPASA newsletter. |
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June 2011
IMMIGRATION
AMENDMENT ACT - MINIMAL IMPACT
ON HOSPITALITY INDUSTRY
By Dirk Meissner, IBN
Consulting and Immigration |
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Although the Immigration
Amendment Act is still not formally
in place and a great level of uncertainty
remains, in this article we would
like to focus on changes relevant
to the tourism and hospitality industry.
The latest estimates are that the
President will sign the new Immigration
Amendment Act into law within the
next 2 months.
Investing in Sectors
of National Interest
Investors will only be welcome if
they invest into sectors of national
interest. We understand that the South
African government fully appreciates
tourism as one of the biggest contributors
to economic stability in the country;
we are therefore optimistic that there
will be no negative consequences for
any foreign investor wishing to apply
for a Business Permit. |
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Increased Investment
However, the minimum investment by a foreigner,
according to the current draft version,
must now be at least R2.5 million. If the
investment includes a business property,
this is typically not an issue, but it becomes
problematic if there are more partners involved
and the investment is split between them.
Excluding small to medium sized
investors
In all likelihood, small and medium sized
foreign investors investing in tour operator
businesses such as shuttle services or tour
guides, restaurants and bars as well as
leased hospitality businesses will be excluded.
Those applicants would need to consider
seeking employment, an often difficult route.
Business Permit Requirement
At this stage, the requirement for a Business
Permit holder remains to employ at least
5 people, but government intends to demand
these employees are all South African citizens.
Previously, permanent residents were also
taken into consideration.
Critical Skills Permit
The tourism industry can probably live with
the abolishment of the exchange permit although
we liked it because it allowed people under
25 years of age to easily work for a year
in South Africa. We will have to wait and
see how the new critical skills permit,
which will be a fusion of the current quota
and exceptional skills work permit, works
out. In principle, most applicants should
be covered by this permit, provided that
Home Affairs will be able to give clear
and timely guidance.
First Applications
All first applications must be completed
in the applicant’s home country. Unfortunately,
most embassies set their own rules and regulations,
leading to significant inconsistencies.
Preparation and coaching
As immigration practitioners, and as lawyers
and advocates will no longer be permitted
to represent the applicants, our work will
become even more important. All permit applications
will now need to be prepared watertight
and applicants will need to be coached for
all eventualities. IBN endeavours to cut
though the red tape on behalf of all its
clients.
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