Entrepreneurship Opportunities in Tourism: Myth or Reality?

Introducing Tourism Enterprise Partnership - TEP Non Profit Company established by Business trust in 2000 Flagship public private partnership in tourism sector One of the longest standing and most successful enterprise development partners for small tourism businesses in South Africa Mandate is to facilitate the growth, development and sustainability of small tourism businesses TEP interventions provide hands-on, step-by-step support and guidance to small tourism businesses

Current Strategic Focus Strategy to achieve mandate has evolved over the years TEP currently focuses on: Enterprise & Supplier Development as per Amended BEE Codes Third Party Project Management Skills Training (TEP is now an accredited training services provider – Services Seta) Access to finance – Ikwezi Tourism Facility Incubators - In partnership with Credit Suisse

Cumulative Impact Since Inception in 2000 More than R550m invested in tourism SMME development Contributed to the generation of over R7 billion in turnover Supported the creation of 83 000 jobs Trained over 25,000 SMME operators and employees Mentored over 450 tourism SMMEs Client base of over 4 000 SMMEs spread across all sectors of the tourism industry Database of vetted SMME suppliers to the tourism industry

Tourism Performance & Outlook UNWTO stats indicate: Africa attracted 53.3 million international visitors in 2015 Tourism growth: 5.4% average annual growth between 2005 and 2014 (compared to the world: 3.8%). Tourism Receipts: 33.2 billion USD (29.9 billion Euros). Despite important challenges, the above figures reconfirm the resilience of the tourism sector and the attractiveness of the African destinations. UNWTO projects international tourist arrivals to grow by 2% to 5% in Africa. South Africa is the top performing destination in Africa with more than 10m arrivals Yes, tourism presents great opportunities for entrepreneurs

Tourism Entrepreneurship in SA – Myths & Reality South Africa has a low level of entrepreneurship culture The Global Entrepreneurship Monitor (GEM) ranks South Africa consistently lower than many African countries The latest data from GEM (2015-2016) shows that fewer and fewer people in South Africa want to start a business that could potentially go on to create jobs and build the economy Entrepreneurial intention in the country is at an all time low The GEM South Africa 2015-2016 report shows that entrepreneurial intentions in the country have dropped by almost 30% (from 15.4% to 10.9%) when compared to 2013 and almost halved when compared to 2010.  Entrepreneurial intentions in South Africa are also significantly lower than for the African region as a whole.

Requirements to Enter the Tourism Industry Low barriers to entry Low skills requirements Low initial investment requirements Love for people Prepared to slog and work hard and at odd hours Make sacrifices Suffer now, enjoy later Not a “get rich quick” sector Be prepared to innovate

Ekurhuleni-Based Tourism Enterprises Supported by TEP in 2015/2016 Accommodation 21 Arts and Crafts 6 Catering/Cleaning 1 MICE 4 Restaurants, Taverns and Shebeens 1 Tour Operators 18 Tourism Activity – Adventure 1 Transport 3 Travel Agency 2 Total 57

Specific Opportunities in Ekurhuleni Aerotropolis Transport/freight industries Hospitality Manufacturing Tourism activities (attractions, adventure, arts & culture, nightlife)

To Unlock Opportunities Remove, reduce red tape Develop human capital - skills Stimulate entrepreneurship Develop and foster a culture of entrepreneurship from early age, Encourage innovation and creativity Provide effective enterprise support programmes Put in place structures and mechanisms to organize & promote tourism businesses (Chambers of Commerce; Tourism Bureaux; Publicity Associations; ect…) Provide access to funding Provide access to markets Mentorship & Incubation (TEP, Seda, Sefa, NDT, DSBD, etc…)

QUESTIONS? TOURISM ENTERPRISE PARTNERSHIP Successfully developing entrepreneurs for over a decade QUESTIONS?