08/05/2005:"For too
many decades tourism has been the symbol of
everything that was wrong with South Africa
– today we take the single most important
step forward since 1994 in addressing that
legacy, and ensuring that we break down the
walls separating our communities from the
benefits of tourism." It was with these
words that Marthinus van Schalkwyk, Minister
of Environmental Affairs & Tourism, officially
launched the new Tourism Black Economic Empowerment
(BEE) Charter in Durban on Sunday.
"Research by Empowerdex in 2003 showed
that of all tourism companies listed on the
JSE there was an average of only 6% BEE ownership,
and whilst changing ownership is only part
of changing the face of tourism, it illustrates
the scope of the challenge," said the
Minister.
The Charter is a series of voluntary commitments
by the tourism industry to achieve empowerment
targets within an agreed timeframe. These
targets are captured in seven broad indicators
including ownership, strategic management,
employment equity, skills development, preferential
procurement, enterprise development, and social
development. The Charter includes measurement
tools to help participants in the industry
identify their current BEE levels, gaps in
their BEE profile, and how to improve their
rating on a balanced scorecard. In addition
to presenting details of the Charter the Minister
also launched a users guide and implementation
video.
Addressing the scope of the Charter the Minister
said: "The Charter will apply to every
single enterprise in the tourism value-chain,
from the largest corporates to the smallest
entrepreneur. Although being rated will not
be compulsory there are major incentives to
implementing the targets in every tourism
business. The rating will be used by all spheres
of Government in determining spending partners
and for targeting investment and development
funding through institutions like the IDC
and the Development Bank. Even other private
companies will want to do more business with
BEE compliant suppliers to boost their own
profiles."
Following the appointment by the Minister
last July of the steering committee to draft
the Charter, there was an extensive period
of public and industry consultation – with
roadshows in all nine provinces and engagement
with organised labour and industry bodies.
"One of the most common concerns that
was raised across the board was the possible
negative impacts that some targets might have
on small tourism businesses," said the
Minister. "We took careful note of these
concerns and I am pleased to announce that
all businesses with an annual turnover of
less than R5 million will be exempt from the
ownership requirements – although the six
other empowerment targets will still apply.It
would not have made economic sense to place
small entrepreneurs like Bed and Breakfast
owners in a position which would have forced
them to sell their businesses en masse."
The Minister also addressed the concern that
the Charter might concentrate too heavily
on ownership: " We have set two distinct
periods – the first is for the five years
to 2009, and the second is the period to 2014
. In the first period the targets and weightings
on the scorecard are firmly focused on building
human capacity in tourism, with skills development
weighted most heavily at 20%. In the second
period we focus on increasing real BEE participation,
and ownership targets become most heavily
weighted. This two-period approach will help
us to phase in the Charter requirements. We
have also dropped the 2014 ownership target
from the original 35% to 30% ."
Speaking about the next steps in implementing
the new Charter the Minister urged all tourism
businesses to get rated either by self-evaluation,
or the preferred path of an independent rating
from a recognised rating authority. Turning
to the future plans of Government he added:
"To drive and monitor the implementation
of the Charter, and to make spot-checks on
the levels of BEE in rated businesses, we
will also be establishing a Tourism BEE Council
and gazetting our Charter as a transformation
charter by 1 August 2005 . "
Thanking every organisation and individual
involved in the drafting process the Minister
said: "Ultimately the BEE Charter that
we launch today will be only as successful
as the industry allows it to be - through
participation and a will to see it implemented.
BEE is as much about the competitiveness of
our industry as it is about direct upliftment
and empowerment. It makes good business sense
and it's the right thing to do."
