TOURISM HOSPITALITY & SPORT EDUCATION & TRAINING AUTHORITY Labour TOURISM HOSPITALITY & SPORT EDUCATION & TRAINING AUTHORITY Presentation To Portfolio Committee on Sports On Annual report 2004 – 2005 Presented by Mike Tsotetsi

INTRODUCTION – THETA TEAM Thabo Mahlangu - Chairperson Mike Tsotetsi - Chie Executive Officer William Chuene - Skills Dev. Manager Alistair Cyster - Skills Dev. Advisor Lucus Jacobs - Skills Dev. Advisor 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

THETA Report to PC on Sports on Annual Report 04 - 05 Sector Profile Industry sectors in Theta’s scope Hospitality Tourism and Travel Sport, Recreation and Fitness Conservation and Guiding Gaming and Lotteries 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

THETA Report to PC on Sports on Annual Report 04 - 05 Employment Profile 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

Employment Equity Profile 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

THETA Report to PC on Sports on Annual Report 04 - 05 As at March 2005 Number of Employers Number of Employees 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

THETA Report to PC on Sports on Annual Report 04 - 05 THETA Universe Chamber Micro 0-49 Small 50-149 Large 150+ Total Hospitality 12913 184 70 13167 Tourism and Travel 1804 29 9 1842 Sport, Recreation and Fitness 1029 9 4 1042 Conservation And Guiding 1383 18 13 1414 Gaming and Lotteries 123 6 11 140 Total 17252 246 107 17605 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

THETA Report to PC on Sports on Annual Report 04 - 05 Sector Profile - Notes Largest sector 70% of tourism spending Hospitality Travel operations, inbound airlines, car rental 40% employment of tourism in Gauteng Tourism & Travel All forms of tourist guiding, wildlife conservation, trekking and safari operators, museums etc Conservation & Guiding Casino’s, horse racing, bookmakers and lotteries Highly regulated chamber through National Gambling Board and provincial gambling authorities Gaming & Lotteries 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

THETA Report to PC on Sports on Annual Report 04 - 05 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 SMME’s between 0-49 employees 81% owned/managed by white’s Dominated by voluntarism Levy contribution insignificant yet there is so much required 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

THETA Universe - Sports  THETA EMPLOYMENT PROFILE 1 April 2004- 31 March 2005 Monday, November 07, 2005    Number of employees  Occupational Group  Job Title AFRICAN COLOURED INDIAN WHITE Total M F D Senior officials and Managers / owner managers 1091 861 4 339 418 1 336 181 3346 2753 12 5112 4213 18 Professionals 278 177 2 151 116 104 53 827 761 1360 1107 6 Technicians 1778 1046 426 472 345 425 2059 2848 4608 4791 Clerical / administrative workers 2636 4148 41 602 1742 405 923 10 984 3939 11 4627 10752 68 Service workers 14340 13792 47 1947 3704 8 802 586 2393 3570 19482 21652 Agricultural and fishery workers 633 346 27 17 711 394 Skilled Workers 280 298 147 44 221 2707 1492 Plant / Machine Operators and Assemblers 1743 820 188 160 55 135 103 2121 1095 Labourers 8617 10630 19 1037 2192 176 180 190 9937 13188 24 Apprentices and Section 18(2) Learners 210 267 49 127 137 389 471 Craft and Related Trade Workers 125 175 15 38 5 13 172 226 Casuals 9 23 29 82 33563 33352 121 5056 9216 16 2320 2431 20 10369 14464 51308 59463 206 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

THETA Report to PC on Sports on Annual Report 04 - 05 Sector Profile 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

THETA Report to PC on Sports on Annual Report 04 - 05 Sector Profile SCARCE SKILLS GAMING AND LOTTERIES HOSPITALITY Management Finance Projects Events Marketing Communication IT SPORTS, RECREATION AND FITNESS SPORTS, RECREATION AND FITNESS CONSERVATION AND GUIDING TOURISM AND TRAVEL 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

THETA Report to PC on Sports on Annual Report 04 - 05 Sector Profile THETA certificates issued As at March 2005 12 991 total certificates issued 10 582 for Hospitality 1 924 for Guiding 270 for Tourism 215 for Nature Conservation Nil for Sports Nil for Tourism and Travel 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

THETA Report to PC on Sports on Annual Report 04 - 05 THETA 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 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

THETA Report to PC on Sports on Annual Report 04 - 05 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 up’s 136 TOTAL 5005 as at year end 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

THETA Report to PC on Sports on Annual Report 04 - 05 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 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

THETA Report to PC on Sports on Annual Report 04 - 05 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 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

THETA Report to PC on Sports on Annual Report 04 - 05 THETA Profile BREAKDOWN BY GENDER BREAKDOWN BY RACE FEMALE MALE TOTAL WHITE BLACK TOTAL 54 21 75 20 55 75 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

THETA Report to PC on Sports on Annual Report 04 - 05 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%) 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

THETA Report to PC on Sports on Annual Report 04 - 05 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%) 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

THETA Report to PC on Sports on Annual Report 04 - 05 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%) 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

THETA Report to PC on Sports on Annual Report 04 - 05 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%) 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

THETA Report to PC on Sports on Annual Report 04 - 05 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% 3326 women unemployed (achievement 48%) 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 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

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 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

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. 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

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. 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

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 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

Committed Funds and Projects Committed projects – R 97.3 million Learnership implementation R 39.8 million Unemployed learners 1700 (target 414 – for current year) 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 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

Committed Funds and Projects continued SMME support R 10.4 million SA Host training SDA’s Training support initiatives SGB R 4.3 million Qualification scoping Employed learners R 8.3 million Capacity building stakeholders R 4.5 million Shop Steward's Capacity Building 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

THETA Key Challenges for 2005 - 2006 Administration expenses SMME levy income Provider accreditation Unit standards and curricula Marketing and communication Public sector levy collection 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

Industry Key Challenges for 2005 - 2006 Graduates – Internships and Work based experience Upgrading educational qualifications Facilitate a high quality delivery framework in line with critical and scarce skills in sports sector Avail information on supply and demand of skills in sports, Recreation and Fitness sectors Challenges facing the Hospitality, Tourism and Sport Sectors in preparation for 2010 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05

THANK YOU ! THETA 38 HOMESTEAD ROAD, RIVONIA, JHB TEL: (011) 803-6010 FAX: (011) 803-6702 31/12/2018 THETA Report to PC on Sports on Annual Report 04 - 05