M Van Schalkwyk: Tourism Black Economic Empowerment Charter Council
Conference

17 April 2007

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
1% 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
Centre, 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 upmarket 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 publicity campaign. The Tourism Charter helpline 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.

Enquiries:
Riaan Aucamp
Cell: 083 778 9923

Issued by: Department of Environmental Affairs and Tourism
17 April 2007