Empowerment & Transformation The development of the BEE Scorecard Presentation to ASATA Congress 19 th March 2005 Tanya Abrahamse CONTENTS E & T context & history Principles in the Broad Based BEE Act Role & composition Steering Committee Sub-sector working groups Consultation Process Phase 1 Phase 2 Road shows Consultation Labour Media communications Communication Channels Submissions, comments & suggestions Outcomes & whats next Final Draft Scorecard E & T context & history Apartheid economic legacy Tourisms legacy sanctions, isolation, petty apartheid, eg National Parks Post 94 tourism approach economic potential Tourism some 4% - aim to contribute 10% of GDP Tourism White Paper Public/private partnership in Tourism in Gear Reform and increased funding (X8) to SATourism Tourism Growth Strategy Massive govt investment in infrastructure, parks etc Re-branding/ segmentation/ better market intelligence E & T context & history (cont) Leap from 64,000 to 6,4 million visitors Yet industry remained overwhelmingly owned, employed and enjoyed by the white sector. Min. Moosas ultimatum August 2000 TBCSA developed Charter 2001 first voluntary, signed by all Business sense notion First E&T review 2002, Second E&T review 2003 BEE Act (some of our thoughts) ratified early 2004 Industry ready to be one of the first to do scorecard Principles in the Broad Based BEE Act about the Scorecard Process DTIs Section 12 of the Act establish two (2) requirements for an industry charter/scorecard to be published in the Government Gazette. The charter and scorecard must: be developed by major stakeholders in that sector; and advance the objectives of the Act. BEE guidelines as promulgated by DTI In order to achieve this, the steering committee: adopted the principles encapsulated in Governments BEE Strategy as the foundation of the Tourism Scorecard embarked on comprehensive communication and consultation process Direct Empowerment Human Resources Development Indirect Empowerment Ownership Management Direct participation in Economic Activities (Shareholders and Management Team) Employment Equity Skills Development Development of Human Capital (Current and prospective employees) Preferential Procurement Enterprise Development Development and Investment in Affirmable Enterprises (Suppliers and communities) DTI Guidelines Other Industry Scorecards Role of the Steering Committee The minister appointed the members of the Steering Committee in Soweto on 13 July 2004 The Steering Committee was requested to accomplish the following by the end of December 2004: Development of the BEE Scorecard; Promote the BEE process; Communicate the process and broader principles of BEE; facilitate access to research, input and information; Facilitate stakeholder partnerships; provide recommendations to amend the Tourism Charter in alignment with scorecard; and provide recommendations for the consideration of a BEE Tourism Council. Composition of the Steering Committee Mr Tim Modise, Chairperson of the Steering Committee; Mr Clifford Ross, CEO, City Lodge Hotels; Mr Faiz Noordien, Deputy Chair, SATSA; Mr Thabiso Tlelai, Chief Executive Officer, The Don Group; Ms Vanya Lessing, Chief Executive Officer, ASATA; Mr Wayne Duvenage, General Manager, SAVRALA Mr Kananelo Makhetha, Managing Director, Connex Travel; Dr Danisa Baloyi, Executive Director, NBBC; Mr Jabu Mabuza, Chief Executive Officer, Tsogo Sun Mr Percy Mkhosi, Tourism specialist at ABSA; Mr Vusi Khanyile, Chairman, Thebe Investment Corporation; Ms Anitha Soni, ASA Tourism Services Mr Frank Kilbourn, Director Bright Equity Dr Tanya Abrahamse, Executive Director, TBCSA Dr Patrick Matlou, Deputy Director General, DEAT Accommodation Hotels Resort Properties and Timeshare Bed and Breakfasts Guesthouses Game Lodges Backpackers and Hostels Hospitality & Related Services Restaurants & Caterers not attached to hotels Knowledge groups Conference & event venues not attached to hotels Business tourism organisors Attractions Travel Distribution Systems Tour wholesalers Tour operators Travel agents Tourist guides Car Hire Coach operators (e.g Hylton Ross etc.) Relevant Associations: FEDHASA, NAA, BABASA, SATSA Steering Committee Representatives: Jabu Mabuza, Clifford Ross, Thabiso Tlelai, Tanya Abrahamse Relevant Associations: SAACI, MICE CLUB, EXSA, FEDHASA, Chefs Association Steering Committee Representatives: Dr Patrick Matlou, Anitha Soni, Percy Mkosi, Vusi Khanyile, Dr Danisa Baloyi Relevant Associations: SAVRALA, SATSA, COASA, ASATA, SATOA Steering Committee Representatives: Wayne Duvenage, Vanya Lessing, Kananelo Maketha, Faiz Noordien, Sub- Sector Working Groups Key Components of the Consultation Process Steering Committee Sub-sector Working Groups Tourism Stakeholder Organised Labour Government & Civil Society DeliberationInput and Submissions Secretariat Media Call Centre Communication & Consultation Website & Phase 1: Consultative Process to Establish Preliminary Scorecard (up to Sep 2004) Preparatory Workshop Steering Com Representatives Scorecard Familiarization Working Group (incl. non-SC) Tourism Stakeholders Solicit Submissions Secretariat Submissions and Commentaries Collation and Analysis Moderation Preliminary Scorecard Initial Scorecard consolidated based on industry submissions, the working group scorecard and Steering Committee deliberation (Draft scorecard for discussion purposes at Road shows) Contact database Trade Ass, Unions AA Travel Guide Exhibitors at Indaba Grading Council Tomsa Levy Collector Phase 2: Development of Scorecard Recommendation (Oct-Dec 2004) 9 Provincial Roadshows Steering Com Representatives Deliberation of Roadshow Input Working Group (incl. non-SC) Tourism Stakeholders Recommendation To STC Secretariat Review of Input and Recommendations Collation and Analysis Further Consultation Final Draft Recommendation Draft Recommendation developed through a comprehensive consultative process Further Submissions Provincial Roadshows APPROACH Draft Scorecard was presented across the country to all stakeholders for comment, suggestions, questions and further submission Draft Scorecard was presented across the country to all stakeholders for comment, suggestions, questions and further submission Invitation PROCESS Briefing at MIPTEC Target Provinces stakeholder databases Contact database invitations sent out Adverts in newspapers 5 October Gauteng 6 October Free State 7 October Mpumalanga 8 October Eastern Cape 11 October North West 12 October Northern Cape 15 October Western Cape 18 October KZN 19 October Limpopo Consultation with Labour APPROACH Targeted solicitation because Labour participation was vital to the process PROCESS NACTU, SACCAWU, ECCAWUSA, FAWU, HIAWU invited to a briefing session Presentations made at NACTU and SACCAWU AGMs One on one meeting with HIAWU Telephonic follow-ups with each labour union represented on the THETA Board OUTCOME Received submissions representing the views of: SACCAWU NACTU (Hotelicca) ECCAWUSA Media Communication Launch in Soweto (Morning Live, Star, Business Day, Die Beeld) Radio interviews (Kaya, SAFM, Jacaranda, 702, East Coast Radio, Motsweding, Lesedi, Thobela) Travel News Now/ Weekly Conference and Exhibition Magazine PMR Magazine Call Centre, Website and dedicatedaddress Media briefing on 30 November 2004 Other communication & consultation channels Breakaway session at the National Tourism Conference Presentations KZN Provincial Tourism Conference (about 350 delegates) Mpumalanga Provincial Tourism Summit PMR Breakfast Parliamentary Portfolio Committee on Environment and Tourism MIPTEC and MINMEC FEDHASA (about 100 Industry stakeholders) Bidvest Workshop SAVRALA members meeting RCI Conference Nelson Mandela Metropole Conference Profile of Written Submissions 116 Written Submissions received from tourism stakeholders, including large tourism groups, SMMEs, tourism associations and potential stakeholders, these submissions represent: 80% of Car Rental companies 90% of Travel agencies/Tour Operators 50% of listed JSE companies 50% of Associations SACCAWU, HIAWU, ECCAWUSA A number of submissions represent multiple Tourism entities, some examples include: NAA representing members EXSA representing 95 members Timeshare Institute representing 20 members Protea Hotels representing 90 hotels City Lodge representing 35 hotels Sun International representing 16 hotels Key Questions, Comments & Suggestions from stakeholders (also provided recommended weighting and targets) Outcome of the Consultative Process Verbal submissions and questions in Road show Written Submissions and weightings and targets recommended Media Comments and Responses Call Centre and Website Responses Submission Summary Final Draft Scorecard Working Group and STC Deliberations Unique Elements of the Tourism Scorecard Focus on Skills and Capacity development in this People- driven Sector Two phase: Five year milestones (2009) and Ten year targets (2014) focusing on different key drivers of the Scorecard Changing the ownership and participation landscape Emphasis on development of Small, Medium and Micro Enterprises Aims to improve access to Tourism Product by all South Africans E & T now and next creating an enabling environment for Tourism growth Competitive analysis to inform market growth Institutional readiness SATourism, Grading Council, THETA Sharper market intelligence and focused marketing Brand SA, differentiator and brand promise Deal driven campaigns and flexible portfolios Shot left giving good returns Now clarity on transformation: further growth and expansion of economy, further massive investment and access of sleeping market! Some facts on delivery of the Tourism Scorecard Forecasted to create a R500m market share to black businesses through Enterprise development Increase Domestic tourism market approx. 5 times current by providing access to tourism experiences to all South Africans = MARKET GROWTH Scorecard Whats next Handed to the Minister on 8 December 2004 Published in the Government Gazette March 2005 Meeting of industry on the 9 th April to clarify impact of Codes of Good Practice Ministers Launch at Indaba May 2005 Clarity, support to comply, great for foreign investors Voluntary, government procurement muscle Experience cascading impact eg Finance Charter Experience 2009 compliance firms start immediately BEE Scorecard A tool to define and measure progress of E & T Our proposal it applies to all, large and small scale Gives clarity, great for investors, including foreign Challenge - develop programmes to support compliance Must not be burdensome particularly for SMMEs Suggest part of audit Voluntary, government procurement muscle Experience cascading impact eg Finance Charter Experience 2009 compliance firms start immediately Thank You Actual Draft Scorecard