Dr Danisa Baloyi – Board Member

Dr Tanya Abrahamse - Executive Director

Dr Keith Shongwe – Board Member

Empowerment & TransformationPresentation to Portfolio Committee

Contents• What is the TBCSA?• Public Private Partnerships• TBCSA achievements• The Tourism Economy• TBCSA initial scoping of Empowerment

&Transformation• Actions taken• The Charter & The First Annual Review• Findings of the Review• Post Review agreement on way forward• Other areas of intervention• TBCSA key priorities for 2003• Future opportunities & challenges• Conclusion• One Voice for Tourism

The TBCSA

• The umbrella organisation representing the tourism business sector involved in

tourism. • Established in 1996 by leading tourism

businesses.• Engages with government , interest

groups and decision makers in developing macro strategies.

• Create an enabling environment for tourism development.

•The potential for adding value to the tourism growth and development effort

remains enormous• There are exciting challenges in the

future.

Public Private Partnerships

• SA Tourism• THETA (Tourism Hospitality & Sports Education

Training Authority)• National Grading Council of South Africa• Airline Bilaterals & Aviation Policy Review (DoT)• Retosa• Lotteries (DTI)• SANParks• Tourism Enterprise Programme• Transformation Forum (DEAT)• Active member of ‘Team SA’

TBCSA Achievements

• Cementing partnerships• One Channel Communications• Identification and leading, lobbying and working

together on priority areas that affect the growth and development of tourism in SA

• Joint marketing of the destination• Considerable more funds for international

marketing• TOMSA growth exceeding expectations

The Tourism Economy

• The fastest growing economic sector in the World

• Worldwide effect of 9/11• SA defying world trends – showed a growth of

20.1% from key markets in 2002• Total foreign tourist arrivals increased by 11.1%

to 6.4 million tourists• Contribution to SA’s GDP expected to increase to

9%• Many large companies reported 25% increase in

profits last FY• Tourism economy broad & diverse and has major

downstream impact on other SA’n industries• Jobs, empowerment, benefit spread – needs a

concerted effort – will not just happen

The Tourism Economy (cont.)

• Overwhelming owned, managed, benefited & enjoyed by the white sector in SA

• The challenge to the TBCSA to lead and drive• Consensus among large players on need for

empowerment & transformation of industry• Linked to “diverse African destination”• Makes Business Sense• Status quo unsustainable• In line with Responsible Tourism• Government’s objectives

TBCSA initial scoping of Empowerment and

Transformation• Definitions – needed to be clarified

AGREED SCOPE• Ownership• Active participation in management• Finance and investment access and support• Skills development and training• Support to emerging SMME’s (not the only focus)• Business linkages• Business practices and labour relations• Workplace culture• Job creation• Access to the tourism experience

Actions Taken

• Consultation with a number of large players• Board agreement on way forward and scope• Industry report commissioned and comments• Survey of success stories and linkages made• Survey of our black / emerging / new / small

business members for obstacles• A Draft Charter of Commitment developed• The first annual review launched in June 2002• Second annual review underway – due June 2003

The Charter & The First Annual Review

• The first step – Charter launched & signed in 2001• Pioneering & historic• Compliance underpinned by Annual Review & peer

pressure• World best practice on reporting and auditing• The survey questionnaire• The consultant – Letsema• Favorable response• Industry is ahead of the game• Agreed measurement tools

The Charter & The First Annual Review (cont.)

• Annual survey on ownership & report on success stories

• Track employment equity data & compliance with labour legislation

• Track IDC, TEP, DTI targets• Track representivity in associations and industry

bodies• Monitor constructive relationship with labour• Achievement of targets in the international

marketing campaign – jobs, geographical spread• Track domestic marketing efforts• Track number of signatories on the Charter

Findings of the review

• Compliance with govt legislation Equity planning and skills development

• Affirmative procurement still a challenge, parastatals leading here

• Gap in funding for start ups and follow thru• Quantitative data scarce and problems with

definition• Communication and access to info uneven• To enter risk capital difficult to get• Profits slow• The industry very co-dependent almost ‘Old

Boys’ to function• The practice of non –active black partners• Ignorance of industry

After 1st Annual Review: agreement on way forward

• Representivity on associations and bodies (2nd review to look at this)

• Tackle affirmative procurement & develop models• Business Linkages – 6 site areas

– 2 rural– 2 deep urban– 2 small urban

• Setting up an affirmative procurement agency– Agreement in principle– Do pilot– Seeking large tourism player to cooperate

• Communication and popularisation – tourism & tourism business broadly

• Grow domestic tourism particularly LSM 4 to 6

Other areas of intervention for BEE

• Access to co-operative marketing (SAT)• Preferential access to southafrica.net website• Business Trust/THETA learnership programme• Tourism Enterprise Programme• IDC commitment to targets• Large events – e.g. WSSD & WCC, and improve• Government travel and procurement policy –

Cabinet decision and Black database• DTI’s incentives programme• Parks concessions• Other privatisation and unbundling processes

TBCSA Key Priorities for 2003

• Act as a communication conduit• Facilitate the information flow to & from SA Tourism• Grow the TOMSA levy• Ensure TBCSA representative of industry views• Identify key impediments• Maintain & improve existing partnerships & identify

new ones• Identify & clarify roles of other organisations• Fight crime & grime• Ensure that capacity follows demand and vice versa• Focus on macro issues and trend analysis

Future opportunities & challenges

• Empowerment & Transformation• Local & International Perceptions of South

Africa• One-Stop Communications and Benefits for

Tourism• New Product Development• Local & International Investment & Financing• Getting the Market Intelligence Right• Propagating a Tourist Friendly Culture among

all South Africans• Drive to include businesses that benefit and

effect tourism (i.e.. Music, sports, film, arts etc.)

Conclusion

• Review refined targets• Projects• Tweeking the process of the puzzle• BEE

– Nationalisation– Sustainability

“One Voice”

Our industry has a long history of fragmentation and self-interest. Yet

international best practice has shown that this industry, more than

any other thrives on national co-operation, pooling of resources and benefit sharing to be internationally competitive. The growth of the past 10 years has shown that strategic leadership in the key areas that

affect our industry and the active public/private partnership has made

our industry and sector highly successful.