Dr Danisa Baloyi

1
Empowerment Transformation Presentation to
Portfolio Committee

• Dr Danisa Baloyi Board Member
• Dr Tanya Abrahamse - Executive Director
• Dr Keith Shongwe Board Member

2
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

3
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.

4
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

5
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

6
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 SAs 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 SAn industries
• Jobs, empowerment, benefit spread needs a
  concerted effort will not just happen

7
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
• Governments objectives

8
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 SMMEs (not the only focus)
• Business linkages
• Business practices and labour relations
• Workplace culture
• Job creation
• Access to the tourism experience

9
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

10
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

11
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

12
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

13
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

14
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
• DTIs incentives programme
• Parks concessions
• Other privatisation and unbundling processes

15
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

16
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.)

17
Conclusion

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

18
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.