1. Entrepreneurship Opportunities in Tourism: Myth or Reality?

2. 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

3. 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

4. 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 jobs
Trained over 25,000 SMME operators and employees
Mentored over 450 tourism SMMEs
Client base of over SMMEs spread across all sectors
of the tourism industry
Database of vetted SMME suppliers to the
tourism industry

5. 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

6. 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 ( ) 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 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.

7. 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

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

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

10. 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…)

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