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

THETA Report to PC on Labour 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 01/01/2019 THETA Report to PC on Labour on Annual Report 04 - 05

THETA Report to PC on Labour on Annual Report 04 - 05 Sector Profile Hospitality Largest sector 70% of tourism spending Many jobs are low level jobs requiring unskilled or semi skilled workers 80% of companies SMME’s between 0-9 employees 85% owned/managed by white’s 01/01/2019 THETA Report to PC on Labour on Annual Report 04 - 05

THETA Report to PC on Labour on Annual Report 04 - 05 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 SMME’s between 0-9 employees 82% owned/managed by white’s 01/01/2019 THETA Report to PC on Labour on Annual Report 04 - 05

THETA Report to PC on Labour 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 0-9 employees 81% owned/managed by white’s 01/01/2019 THETA Report to PC on Labour on Annual Report 04 - 05

THETA Report to PC on Labour on Annual Report 04 - 05 Sector Profile Conservation and Tourist Guiding All forms of tourist guiding, wildlife conservation, trekking and safari operators, museums ect 77% of companies SMME’s between 0-9 employees 84% owned/managed by white’s 01/01/2019 THETA Report to PC on Labour on Annual Report 04 - 05

THETA Report to PC on Labour on Annual Report 04 - 05 Sector Profile Gaming and Lotteries Casino’s, horse racing, bookmakers and lotteries Highly regulated chamber through National Gambling Board and provincial gambling authorities 80% of companies SMME’s between 0-9 employees 80% owned/managed by black’s 01/01/2019 THETA Report to PC on Labour on Annual Report 04 - 05

THETA Report to PC on Labour on Annual Report 04 - 05 Sector Profile 01/01/2019 THETA Report to PC on Labour on Annual Report 04 - 05

THETA Report to PC on Labour on Annual Report 04 - 05 Sector Profile 01/01/2019 THETA Report to PC on Labour on Annual Report 04 - 05

THETA Report to PC on Labour on Annual Report 04 - 05 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 01/01/2019 THETA Report to PC on Labour on Annual Report 04 - 05

THETA Report to PC on Labour on Annual Report 04 - 05 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 01/01/2019 THETA Report to PC on Labour on Annual Report 04 - 05

THETA Report to PC on Labour 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 • 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 01/01/2019 THETA Report to PC on Labour on Annual Report 04 - 05

THETA Report to PC on Labour 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 01/01/2019 THETA Report to PC on Labour on Annual Report 04 - 05

THETA Report to PC on Labour 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 01/01/2019 THETA Report to PC on Labour on Annual Report 04 - 05

THETA Report to PC on Labour 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) 01/01/2019 THETA Report to PC on Labour on Annual Report 04 - 05

THETA Report to PC on Labour on Annual Report 04 - 05 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. 01/01/2019 THETA Report to PC on Labour on Annual Report 04 - 05

THETA Report to PC on Labour 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%) 01/01/2019 THETA Report to PC on Labour on Annual Report 04 - 05

THETA Report to PC on Labour 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%) 01/01/2019 THETA Report to PC on Labour on Annual Report 04 - 05

THETA Report to PC on Labour 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%) 01/01/2019 THETA Report to PC on Labour on Annual Report 04 - 05

THETA Report to PC on Labour 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% 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 01/01/2019 THETA Report to PC on Labour on Annual Report 04 - 05

Annual Financials & Audit Results Labour 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 01/01/2019 THETA Report to PC on Labour on Annual Report 04 - 05

Annual Financials & Audit Results Labour 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. 01/01/2019 THETA Report to PC on Labour on Annual Report 04 - 05

Annual Financials & Audit Results Labour 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. 01/01/2019 THETA Report to PC on Labour on Annual Report 04 - 05

Annual Financials & Audit Results Labour 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 01/01/2019 THETA Report to PC on Labour on Annual Report 04 - 05

Committed Funds and Projects Labour 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 01/01/2019 THETA Report to PC on Labour on Annual Report 04 - 05

Committed Funds and Projects continued Labour 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 Stewart's Capacity Building 01/01/2019 THETA Report to PC on Labour on Annual Report 04 - 05

THETA Report to PC on Labour on Annual Report 04 - 05 Key Challenges for 2005 - 2006 Administration expenses SMME levy income Provider accreditation Unit standards and curricula Marketing and communication Public sector levy collection 01/01/2019 THETA Report to PC on Labour on Annual Report 04 - 05