Industry leads the way in tackling transformation

THE tourism industry has become the first South African industry to commission a review on the current status of empowerment and transformation within the sector. The Tourism Business Council of South Africa (TBCSA) launched the review, completed by Letsema Consulting, last Thursday evening. In her speech, outgoing chair of the TBCSA, Dr Danisa Baloyi, explained that the organisation identified the issue of empowerment and transformation as a priority as early as 2000. As a first step, a Charter was drafted and signed by stakeholders in the tourism industry on June 1, 2001. Just over a year later, Letsema Consulting, commissioned by the TBCSA, has published the review. Presenting the results of the 32-page research document, Isaac Shongwe, managing director of Letsema, said the report indicated that there was a high level of Black Economic Empowerment (BEE) awareness among industry participants, matched by a corresponding willingness to take positive action. However, there is also a general frustration caused by uncertainty over the best course of action to take, and a lack of knowledge or expertise. It was also found, among others that, despite constraints; several companies have made "significant progress” in transferring ownership to black South Africans. Very few, however, have implemented employee share option schemes. Shongwe also identified a major obstacle to enticing potential black business owners from entering the industry or applying for jobs within the industry. According to him, the tourism industry is not widely regarded by black people as a desirable place to work, there is a major gap in the tourism industry for funding to start-ups and small, medium and micro enterprises (SMMEs), access to funding is limited and the financial barriers to entry can be considerable compared to small profit margins. In short, there is a perception that the investment in time, energy and finances is huge, with little or no reward. Shongwe recommends that there should be broader participation by small black businesses in industry bodies - such as Southern Africa Tourism Services Association (Satsa), the Association for South African Travel Agents (Asata) and the Federated Hospitality Association of South Africa (Fedhasa) - where assistance is available and they can lobby on behalf of their members. He says the Tourism Enterprise Programme (TEP) can play a role in facilitating linkages between established players and small black enterprises. It was also recommended that an annual TBCSA empowerment awards scheme be implemented; which recognises industry players that have made notable progress in the area of empowerment. TNN has reported on Minister of Environmental Affairs and Tourism, Mohammed Valli Moosa's announcement a new award – based on feedback from SMMEs – to be awarded to the established enterprise that has done the most work in the development of SMMEs. The award, launched at Indaba 2002, should address the latter recommendation. (Adéle Mackenzie)