Click to edit Master subtitle style 4/23/10 TOURISM TRANSFORMATION UPDATE BROAD BASED BLACK ECONOMIC EMPOWERMENT (B-BBEE) IMPLEMENTATION IN TOURISM

4/23/10 CONTENTS 1. Overview 1.1Incorporation into NDT 1.2Tourism charter advisory mechanism 1. Gazetting 2. National BEE Advisory Council 3.1Appointment 3.2Role 3.3Annual reporting process 1. Alignment between PPPFA and BBBEE /11 Business Plan 3. Measuring progress to date 4. Challenges 5. Responding to the Challenges

4/23/10 1.Overview 1.1Incorporation into the National Department of Tourism From the 1st of April 2010 the Tourism Empowerment Programme now operates as a unit within the Branch Tourism Development Through this incorporation TECSA will have access to the necessary support to implement its work achieving maximum impact The programme is mandated to facilitate and monitor transformation

4/23/10 1.Overview 1.2Tourism BBBEE Charter Advisory Mechanism As required by the BEE Act 53 of 2003, the Department is in the process of reviewing the mechanism to interact with private sector consisting of members from, civil society, SMME’s and organised labour. This will be the platform where the partnership and commitment by government and private sector is given expression through an agreed action plan to drive compliance of the Tourism sector to BBBEE

4/23/10 2.Tourism Codes Section 9 (1) Status Promulgated in May 2009 Verification agencies required to be sector certified by SANAS Binding on public sector 29 verification agencies (VA’s) accredited to date Non of the accredited VA’s have been accredited for tourism or any other sector charters 7 years left for implementation

4/23/10 3.National BEE Advisory Council  The National BEE Advisory Council, chaired by the President, has been appointed and their inaugural meeting held on the 4th February  The dti Minister will be the deputy chairperson and will be inviting sector charters to a meeting with the council for introductory purposes.  The council is made up of 19 members from  Business  Labour  Government and  Community

4/23/10 3.National BEE Advisory Council The BEE Act 53 of 2003, section 4 establishes the BEE Advisory Council whose function as outlined in section 5 of the same act, are: To advise government on black economic empowerment; Review progress in achieving black economic empowerment; Advise on draft codes of good practice which the dti Minister intends publishing for comment in terms of section 9(5) Advise on the development, amendment or replacement of the strategy referred to in section 11 of the above mentioned Act. If requested to do so, advise on draft transformation charters; and Facilitate partnerships between organs of state and the private sector that will advance the objectives of this Act

4/23/10 3.National BEE Advisory Council  Sectors to prepare to submit interim reports on the state of transformation on their respective sectors in the next six months  Public sector compliance and reporting will be the responsibility of the dti BEE unit  B-BBEE portal up and running. Dti has offered to assist charters to align with the technology for ease of online reporting

4/23/10 3.National BEE Advisory Council 3.3Annual reporting process Sector Charters will be informed of the annual reporting cycle to the advisory council Sector Charter Advisory mechanism will be the structure that reports to the National BEE Advisory Council Progress presented will be reviewed and presented to cabinet The section 9 status of any sector may be withdrawn should an sector fail to meet the targets it has set for its self

4/23/10 4. Public Preferential Procurement Framework Act (PPPFA) vs Broad Based BEE(B-BBEE) Lack of alignment remains a challenge In November 2009 the Minister of Finance issued the new measurements for the alignment of the two policies for comment. To date no finalisation has been reached to bring the process to conclusion Without alignment government will not be able to maximise its impact on transformation through procurement

4/23/ /11 Business Plan Highlights Strategic ObjectivesKPIInitiativesBudget Private sector compliance to the gazetted Tourism COGP in B-BBEE in line with set targets Number of black majority owned small, medium and large enterprises Develop funding model for BEE transactions Alignment of reporting and monitoring to the dti B-BBEE portal Facilitate R1bn BEE deals fund through financing channels such as development agencies e.g. IDC Facilitate an Enterprise Development programme in partnership with TEP providing small business support through mentorship Publish annual report R1.5m Number of tourism enterprises verified with a BEE rating Subsidized verification during first call to reporting by industry Develop training manual for verification agencies Host 4 workshops for verification agencies R500k

4/23/ /11 Business Plan Highlights Strategic ObjectivesKPIInitiativesBudget 1. Private sector compliance to the gazetted Tourism COGP in B-BBEE in line with set targets Number of compliant business (level 4 and above) Develop transformation guide providing basic tools on how to implement scorecard Showcase empowered enterprises for public sector procurement Conduct awareness campaign R400k

4/23/ /11 Business Plan Highlights Strategic ObjectivesKPIInitiativesBudget 2. Leverage Public Sector spend to promote tourism transformation Increase in the number of state organs compliant with Tourism Charter and scorecard Initiate online quarterly reporting by focal points Develop standard reporting template aligned to dti public sector report Host 2 mega Focal Point meetings annually Develop and implement local government liaison strategy Host national workshops with SCM’s on Tourism BEE implementation Publish a booklet of all empowered tourism products/services R600k

4/23/ /11 Business Plan Highlights Strategic ObjectivesKPIInitiativesBudget 3. Achieve tourism beneficiation through empowerment of members of designated groups Increase in the number of black new graduates absorbed by the sector Develop Black Talent database for industry in partnership with THRD Develop a PPP programme for the training and development of tourism resources for immediate employment Develop a response to the barriers identified in absorbing tourism graduates Profile industry to attract graduates in other fields that compliment tourism R1m

4/23/ /11 Business Plan Highlights Strategic Objectives KPIInitiativesBudget 3. Achieve tourism beneficiation through empowerment of members of designated groups Increase in the number of black women in executive positions and ownership of businesses Profile tourism at forums and communication platforms targeted at women Indentify champions in the industry who can stimulate the debate and thus create awareness of this gap presenting an opportunity for women Do a survey to find out the reasons for this current situation Create mentorship programme for women in tourism Enter 5 candidates for the annual BEE awards in the women category. R300k

4/23/10 6.Measuring Progress to Date Embarked on a national study to measure Transformation progress achieved to date. The study will measure – Provincial state of transformation – Transformation by sub sector – Beneficiary views on transformation

4/23/10 7.Challenges The following are challenges in achieving rapid transformation – Access to finance – Production of scarce and critical skills – Cultural barriers preventing women especially in rural communities from advancing in tourism – Dual ownership of rural land assets – Global and national recession – Lack of alignment between BBBEE and PPPFA – Number of verification agencies accredited

4/23/10 8.Response to challenges Through the initiatives outlined in the business plan we plan to address the challenges we are facing whilst stimulating the desired response from private sector to achieve compliance. – Facilitate R1bn finance for BEE deals (IDC, Khula, DBSA, etc) – Establishing a women’s top 100 mentorship initiative – Establishing career development programme for graduates in partnership with private sector – Provide support for verification agencies to acquire accreditation for tourism verification