Opinion: Opening doors for black-owned enterprises

The department of tourism is developing guidelines to promote greater participation in the industry by black-owned enterprises through the Amended Tourism Broad-Based BEE Sector Code.

Releasing the amended codes in January, Tourism Minister Derek Hanekom said that in 2010 only one in four large tourism enterprises was black owned, and a mere 12% of large enterprises had 50% black representation at board, directorship or management level.

Given this poor performance in transformation, the department has also identified the role small enterprises can play in bringing about greater participation by black-owned businesses.

The weak rand will not always be as favourable to global visitors, but while it is, it provides an opportunity not only to show the country’s unique experiences, but to broaden economic participation in the sector.

While commodities decline, tourism is becoming a ­significant driver of economic growth that can leverage the country’s alternative natural resources: wildlife and natural beauty across all provinces.

Foreign visitor arrivals were up 6% in December last year on the 2014 numbers, with Stats SA showing ­phenomenal growth in tourist numbers from interesting places – 135% more visitors arrived from China, followed by Singapore (51%), Saudi Arabia (57.7%), Mexico (24%) and even Greece (18.5%). While those numbers are dwarfed by the 54 608 tourists from the United ­Kingdom, the increases indicate a shift.

The tourism value chain contributes 9% of our gross domestic product, supports more than 1.4 million jobs and affects a number of supporting industries, from goods to transportation and general services.

The Industrial Development Corporation (IDC) has identified tourism and hospitality as the sectors that can support employment and economic growth. But we believe better results lie in supporting tourist activities that supplement the country’s accommodation facilities. Not only do such attractions enrich the tourism experience, they also open up the industry to new operators.

A diversified tourism sector – not only in attractions and activities but also in ownership – will be a stronger sector.

While the IDC is well placed to support viable business ventures, all industry players must use the opportunity to build consensus around their long-term potential.

Mpeta is head of Tourism and Light Manufacturing at the IDC