TOURISM HOSPITALITY

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TOURISM HOSPITALITY SPORT EDUCATION TRAINING
AUTHORITY

• THETA Report
• To
• Portfolio Committee on Labour
• On
• Annual report 2004 2005
• Presented by Mike Tsotetsi

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Sector Profile

• Industry sectors in Thetas scope
• Hospitality
• Tourism and Travel
• Sport, Recreation and Fitness
• Conservation and Guiding
• Gaming and Lotteries

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Sector Profile

• Hospitality
• Largest sector
• 70 of tourism spending
• Many jobs are low level jobs requiring unskilled
  or semi skilled workers
• 80 of companies SMMEs between 0-9 employees
• 85 owned/managed by whites

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Sector Profile

• Tourism and Travel
• Travel operations, inbound airlines, car rental
• Potential to create significant economic growth
• 40 employment of tourism in Gauteng
• 87 of companies SMMEs between 0-9 employees
• 82 owned/managed by whites

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Sector Profile

• Sport Recreation and Fitness
• Sport event management, health, fitness and
  wellness centers, indoor outdoor sports, sports
  events fall within this scope
• 86 of companies SMMEs between 0-9 employees
• 81 owned/managed by whites

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Sector Profile

• Conservation and Tourist Guiding
• All forms of tourist guiding, wildlife
  conservation, trekking and safari operators,
  museums ect
• 77 of companies SMMEs between 0-9 employees
• 84 owned/managed by whites

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Sector Profile

• Gaming and Lotteries
• Casinos, horse racing, bookmakers and lotteries
• Highly regulated chamber through National
  Gambling Board and provincial gambling
  authorities
• 80 of companies SMMEs between 0-9 employees
• 80 owned/managed by blacks

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Sector Profile
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Sector Profile
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Sector Profile

• Scares and Critical Skills in the Sector
• Management and leadership development should be
  core area of training
• Target groups unemployed graduates for
  employment within industry
• Assessor/Moderator training
• HIV/Aids training
• ABET, communication a priority
• Computer literacy and financial management

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Sector Profile

• Theta certificates issued
• 12 991 total certificates issued
• 10 582 for Hospitality
• 1 924 for Guiding
• 270 for Tourism
• 215 for Nature Conservation

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SETA Profile

• Linkages to provincial, rural and presidential
  nodal development areas
• INTAC PROJECT Nature Based Tourism and
  Conservation Skills Training
• Greater St. Lucia Wetlands
• Maluti Drakensberg Conservation Area
• Eastern Cape South
• Eastern Cape North
• Northern Cape Cluster
• Great Limpopo TFCA
• Madikwe Game Reserve
• Waterberg Biosphere
• Blyderivierspoort Nature Reserve

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SETA Profile

• Linkages to provincial, rural and presidential
  nodal development areas
• INTAC PROJECT Nature Based Tourism and
  Conservation Skills Training (NSF funding R109
  million)
• Employed learners 1977
• Unemployed learners 2282
• Community leaderships 610
• New business start ups 136
• TOTAL 5005 as at year end

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SETA Profile

• Linkages to provincial, rural and presidential
  nodal development areas
• TLP PROJECT Tourism Learnership (Business
  Trust and NSF funding R120 million)
• SA Host training 13 244
• Unemployed learners 6 142
• Employed learners 2 901
• Assessors, Moderators, Trainers 1 684
• Qualifications registered 30
• Achievement 123 of targets

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SETA Profile

• Linkages to provincial, rural and presidential
  nodal development areas
• SATI PROJECT Tourism Education and Training
  (Spain funding R 13 million)
• Teachers trained tourism 1 423
• Teachers trained hospitality 511
• Schools interaction 700
• Tourism management development 133
• SMME training 1 009
  (B B 295, Tour operators
  373, Caterers 341)

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SETA Profile
Note Subsequent to year end, procurement moved
to the CFO, vacancies were put on hold and
permanent employees reduced from 36 to 26.
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NSDS 2001 2005 Achievements

• Indicator 1.1 No of Workers at NQF 1
• 97 047 (achievement 54)
• 75 115 black workers (achievement 353)
• 31 475 women (achievement 233)
• 82 disabled workers (achievement 8)
• Indicator 1.2 No of workers on structure
  learning programmes
• 703 756 (achievement 209)
• 89 566 black ( achievement 156)
• 23 549 women (achievement 65)
• 109 disabled ( achievement 4)

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NSDS 2001 2005 Achievements

• Indicator 1.3 No of enterprises that achieved
  national standard of people development
• 24 enterprises on Investors in People program
  (achievement 120)
• Indicator 2.1 No of large enterprises that
  received skills development grants
• 134 levy paying enterprises receiving grants
  (achievement 110)
• Indicator 2.2 No of medium enterprises that
  received skills development grants
• 131 levy paying enterprises receiving grants
  (achievement 211)

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NSDS 2001 2005 Achievements

• Indicator 2.3 No of learnerships available to
  workers in sector
• 24 active learnerships
• (achievement 96)
• Indicator 3.1 No of small enterprises that
  received skills development support
• 3074 small businesses receiving grants and
  support (achievement 222)

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NSDS 2001 2005 Achievements

• Indicator 5.1 No of unemployed young people
  that entered learnerships or apprenticeships
• 6919 learners (achievement 46)
• 3890 black unemployed (achievement 31
• 398 women unemployed (achievement 5)
• No of learners on learners or apprenticeships
  that were placed in employment
• Sample research on learner placement conducted by
  an external evaluator in March 2005 indicated
  60.42 placement rate out of group of 208 18.2
  (unemployed learners).
• Information on Learner placement is being sourced
  from Companies. Due date for submission of
  information is 31st October 2005
• To date responses from 9 companies indicated
  placement of 78 learners

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Annual Financials Audit Results

• SDL Income R 96.7 million , up 8.5 on prior
  period due to levy drive campaign
• Total Investment Income R 9.7 million, interest
  earned on short term investments with approved
  banking institutions
• Total revenue R 171.3 million, mainly driven by
  levy income and NSF income of R 49.5 million,
  revenue up 7.4 vs prior year driven by levies
  received
• Total expenses R 158.5 million, mainly driven
  by grant and project expenses of R 79.9 million,
  grant and project expenses up 390 vs. prior year
  

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Annual Financials Audit Results

• Expenses as percent of SDL Income 164 driven
  by project expenses
• Net surplus / (deficit) R 12.7 million, down
  R58.4 million vs prior year due to increased
  expenditure on grants and projects 390
• Total Cash Cash equivalents R 199.1 million
  committed funds for projects are R 97 million,
  payables (less receivables) R 15 million,
  contingent liabilities R 2.7 million and
  additional approved scoped projects of R 26
  million at year end as well as grant payments of
  R 20 million. Balance for anticipated claims of
  old mandatory grants.

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Annual Financials Audit Results

• Qualification
• Irregular expenditure (exceeded 10 threshold for
  admin expenses)
• Approval from National Treasury attempted
• Project income rejected aggravated the situation
• Expenses came in line with budget, income not,
  therefore exceeded 10
• Subsequently, restructured organisation, reduced
  staff compliment by 27 ( vacant positions put on
  hold)
• Challenge - loss of SMME levy income predicted to
  be R 11 million change in regulations which
  prohibit the charge of administration costs to
  projects scoped from surplus funds.

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Annual Financials Audit Results

• Matters of emphasis
• Non payment of discretionary grants
• 10 discretionary grant allowance was scoped as
  project and paid as learnerships
• Subsequently discretionary grants for 2005 are
  paid to qualifying employers i.r.t HIV/AIDS and
  ABET initiatives
• Special investigation
• In relation to procurement practices awaiting
  report form AG

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Committed Funds and Projects

• Committed projects R 97.3 million
• Learnership implementation R 39.8 million
• Unemployed learners 1700 (target 414)
• Chambers required skills R 23.1 million
• Development of managers
• Development of foreign language for tour guides
• Development of environmental and conservation
• Graduate event learnerships
• Computer literacy and business management
• Lottery outlets entrepreneurs
• Gambling casino operators
• Sport recreation and fitness

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Committed Funds and Projects continued

• SMME support R 10.4 million
• SA Host training
• SDAs
• Training support initiatives
• SGB R 4.3 million
• Qualification scoping
• Employed learners R 8.3 million
• Capacity building stakeholders R 4.5 million
• Shop Stewart's Capacity Building

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Key Challenges for 2005 - 2006

• Administration expenses
• SMME levy income
• Provider accreditation
• Unit standards and curricula
• Marketing and communication
• Public sector levy collection