The Department of Tourism says it will defend the Tourism Equity Fund in the Constitutional Court.
This, after the Supreme Court of Appeals, in September, declared the fund’s application requirements as illegal.
Solidarity and AfriForum, who took on the fund on behalf of their members and the tourism industry, say they are also ready to take the fight further.
The two groups say the controversial fund has been declared illegal because it discriminates, as an aid-fund, on the basis of race.
Former Tourism Minister Mmamoloko Kubayi-Ngubane announced the TEF.
She has since been replaced by Lindiwe Sisulu.