Address by the Minister
of Environmental Affairs and Tourism, Marthinus
van Schalkwyk, at the Opening of the Tourism
Black Economic Empowerment Charter Council
Conference at the Sandton Convention Center,
Johannesburg, 17 April 2007
17 April 2007 – Speech - Department of
Environmental Affairs and Tourism - It is
my honour today to address you all at the
opening of the first conference to be held
by the Charter Council. It was only last
year at a ceremony in Pretoria on 29 May
that the Council unveiled its new corporate
identity, proclaiming to the nation that
it was open for business and ready to play
a part in the development of an industry
which has come to mean so much to South
Africa - especially after our emergence
from international isolation in April 1994.
It is highly appropriate that their first
conference should be held in the auspicious
month in which we annually celebrate our
emergence as a new democracy and a force
for peaceful change.
Since 1994, the tourism floodgates have
opened and we have seen unprecedented growth
in an industry, which is currently ranked
as one of the most important in the country.
When we opened our doors to the world, an
estimated 3.6 million international tourists
entered our country. By 2006, following
years of steady growth, almost 8.4 million
people visited our shores in a single year.
A sad fact that cannot be ignored is that
the majority of the country’s population
did not benefit to any great extent from
this explosion of interest in the southern
tip of Africa. We are known as “The Rainbow
Nation” but very few people across the spectrum
of the rainbow saw significant amounts of
foreign spending pouring into their businesses.
It is for this reason that in July 2004,
I announced the establishment of the Tourism
Charter Steering Committee. The Committee
was tasked with developing a Charter for
the tourism industry and recommending the
way forward for the South African Tourism
industry, as well as giving guidance on
international best practice.
In April 2005, the Charter was presented
to cabinet and approved. The next major
stepping stone was its acceptance by the
tourism industry and the joint signing of
the Charter by government and industry representatives
who committed themselves to transforming
tourism in our country.
I am pleased to say that the speed with
which the Charter was developed and with
which the Council came into being and was
staffed, has been exemplary. Today’s conference
provides us with a chance to meet once again
and recommit ourselves to the transformation
we promised when we signed the Charter in
July 2005.
I would like to be able to say that the
tourism industry has set an example for
the rest of the country in developing an
equitable industry. Regrettably, however,
we have a long way to go before we can make
that claim. It is a fact that although many
more black people are participating in the
tourism industry, they are doing so more
as employees than owners, directors or shareholders.
The reasons for the slow progress are many
and varied. Large-end listed entities have
made the most significant strides in ownership,
but as one travels down the tourism chain
to large unlisted companies and down to
small-end micro businesses, figures reflecting
black ownership, co-ownership and even management
decline significantly. It is also a matter
for concern that recent research undertaken
by the Council indicates that many large
listed companies currently place ownership
at the bottom of their importance list.
In the six provinces measured it was found
that on average only 15.6% of 321 bed and
breakfast operations - the entry point into
the industry for many entrepreneurs - were
owned by black operators. Of 90 hotels examined,
only 4.4% were black owned or controlled.
Black professional caterers comprised just
over one percent of 23 establishments canvassed.
So, you will understand why I say today
that we still have a long way to go.
It would, however, be remiss of me to concentrate
only on the negative. We are all involved
in a dynamic, growing industry and many
of the role players are making meaningful
contributions towards improving the lot
of the previously disadvantaged. They do
so by bringing their skills and expertise
forward to launch initiatives that improve
service delivery within the industry and
also to broaden the industry’s supplier
base.
As we are in the Sandton Convention Center,
I feel it is appropriate to mention Southern
Sun, which operates many establishments
in this area. They have provided expertise
to Bed and Breakfast establishments in Soweto,
imparting advice, equipment and training
to ensure that tourists visiting the area
will enjoy experiences and amenities that
are on par with those in more up-market
areas.
They have also extended a hand, literally
across the highway, to Alexandra, where
they helped establish cottage industries
that have become suppliers to the hotels
by which we are surrounded here in Sandton.
We also have operators in more remote areas,
such as Sabi Sabi and Phinda game reserves
and St Lucia, who have helped local communities
to become involved in their operations as
suppliers of various items from vegetables
and fish through to tourist mementos.
Building the tourism industry, ladies and
gentlemen, doesn’t always mean handing over
vast amounts of cash, or having a highly
paid black executive on your staff. It can
mean simply extending a helping hand and
identifying opportunities for community
growth and participation.
At this point let us return to the work
of the Charter Council and their part in
helping us create a new future for tourism.
In its short history, the Council has built
steadily on its ultimate goal of working
towards full participation by black entrepreneurs,
executives and business owners in the South
African tourism industry. By the end of
the financial year 2006, which marked the
first full year of their mandate, they have
made significant progress in bringing the
Tourism Charter to both the industry and
the public.
South Africa is often referred to as two
countries: a first world country and a third-world
country co-existing within our borders.
This dichotomy presents the Council with
its biggest challenge - how to reach the
thousands of people scattered across the
country who are involved in tourism to a
greater or lesser degree.
They have, I feel, tackled the problem
in a logical way and concentrated on offering
the tourism industry access to information
on the Charter. They backed this with Tools
that help companies to measure themselves
against the Charter and then decide for
themselves what has to be done to come up
to par.
The Council’s approach is based on thorough
research, which it recently commissioned.
In addition to this, the Council has risen
to the task of popularising the Tourism
BEE Charter - through the Council’s website,
as well as a marketing and campaign. The
Tourism Charter Help Line is also a vital
public information source.
The Council has also been involved in developing
incentives to encourage voluntary compliance
with Charter provisions, and has engaged
in thorough consultation with both industry
and business to ensure that there is effective
follow through. The Council has gone even
further to ensure that verification systems
are in place to assess compliance.
I think you will agree that this is remarkable
progress, for a body that is still in its
infancy. I look forward to many more milestones
and conferences in the future and wish the
Charter Council and tourism industry a mutually
prosperous journey into the future.
Ladies and gentlemen, thank you for your
time. Enjoy the conference.
