Possessing the necessary skills:

Skilling for success of the Tourism economy.

Presentation by Darryn von MaltitzUniversity of Johannesburg16 October 2007

Skills in context

• Complex issue because tourism as an economic sector is multi-faceted

1990-1993

1994-1999

2000-2003

2004-2007

• The early 1990s was a period when tourism and sport was not a priority for the government in power

• South Africa’s first democratic elections heralded a change for the country’s tourism industry – the industry is set for growth

• HITB drives skills development initiatives, industry contributes voluntarily. The groundwork is laid for skills development, but the lack of skills in the tourism sector is identified as dire

• Theta is established – combining tourism and sport for the first time, the Tourism Learnership Project is rolled out with mixed success,

• In 2004, the GCR identifies skills as an issue that may be a constraint to growth in the sector.

• 2006, DEAT and THETA commission a national skills audit• 2007 – DTI national industrial policy includes finalisation of the tourism SSP in

its action plan

Challenges

4

To undertake a Skills Audit and identify priority skills needs within the Sector which culminates in a strategic report that:

• Informs DEAT’s strategic planning for skills development in the sector

• Assists Theta in refining its Sector Skills Plan

• Provides insight for partners/ stakeholders to develop an implementation strategy to support skills development

Travel & Tourism

Conservation & Tourist Guiding

Hospitality

Gaming and Lotteries

Sport, Recreation and Fitness

Project objectives

The Sector

5

Research conducted in March and April 2007

Review of Secondary Data

Methodology

• Structured in-depth questionnaires• Included Theta levy payers, Theta registered non-levy payers and non-

Theta registered organisations• Randomly selected • Across 9 provinces• Across the sector• Statistically valid

1 238 Employer Interviews

• Structured in-depth questionnaires• Randomly selected• Included Theta ETQA, FET and HET providers

65 Training Provider Interviews

• Open-ended discussion• Purposefully selected• Included representatives of private sector, public sector, unions and

associations

49 High-level Interviews

• Open-ended facilitated discussion• Included youth, persons with disabilities, co-operatives and community

based organisations and unionised officials9 Focus Groups

• Presentation of research findings• Discussion and debate• Included training providers and Theta stakeholders

2 Validation Workshops

RESEARCH HIGHLIGHTS

7

• Unions, government and development agencies generally feel that employers in this sector:– Do not capacitate staff – Exhibit dubious employment practices and – Provide little recognition of the upliftment of black women and

black staff • Employers and industry believe that:

– Companies do invest significantly in training and capacitation, albeit that it is unaccredited and not ETQA aligned training

– The current THETA/ SETA and SAQA requirements and structures discourage training and skills development

Stakeholders have conflicting opinions of each other

Estimated size of the industry

Sector Size

Sub-Sector Estimated Number of Employers

Estimated Number of Employees

Hospitality 28 000 290 000

Travel and Tourism 6 200 28 000

Gaming and Lotteries 740 10 000

Sport, Recreation and Fitness 3 300 20 000

Conservation and Tourist Guiding 3 500 30 000

TOTAL 41 740 378 000

• Refers to only those organisations listed on one or more databases• Excludes an unknown number of ‘unlisted’ SMMEs• Hospitality is the largest sub-sector – with 67% of the employers and 77% of the

employees

SMME Dominance

SMMEs

Sub-Sector Percentage SMMEs in the Sub-Sector

Hospitality 97%

Travel and Tourism 97%

Conservation and Tourist Guiding

89%

• SMME = organisation that employs less than 50 full-time employees• Many SMMEs are owner managed

Employee profile and qualifications

Sub-Sector % Black Employees[1]

% black senior managers

% < NQF 1 % NQF 2-4 % NQF 5-8

Hospitality 72% 40% 54% 28% 18%

Travel and Tourism

58% 45% 7% 18% 74%

Conservation and Tourist Guiding

74% 20% 28% 50% 22%

11Source: Theta/ DoE

• Accredited training providers are typically small (<50 employees) and located in Gauteng

• There is limited training provision available outside the major cities

• There are a large number of hospitality training providers (mainly located in the main cities)

Training provider profile

Training Provider Universe

7

28

65

Universities

FETs

THETA/SETA

Universe=432 providers

%

%

%

12

Constraints to effective training provision

Future skill requirements (3 year period)

HOSPITALITY

Cook, Chef 24 100

Waiter/ress 23 500

Cleaner 15 000

Reservations/Operations Director/ Manager/ Assistant Manager/ Supervisor

8 000

Cashier 7 800

Travel and Tourism

Travel Consultant/ Reservation Agent

3 150

Bookkeeper 900

Reservations/ Operations Director

800

Tour Operator 600

Supervisor 450

Criteria for employee recruitment

Hospitality• Junior Staff – Experience• Mid-level staff – Experience• Senior staff - Experience

Travel and Tourism• Junior Staff – Matric• Mid-level Staff – Matric• Senior Staff – Qualification/

diploma

Conservation and Tourist Guiding

• Junior Staff – Experience• Mid-level staff – Experience• Senior staff - Experience

Employers complain that graduates do not have experience

Recommendations

Conclusion

•Skills are not the only challenge facing the sector – there are many others – transportation, safety and security, enterprise development etc•We are a tourist destination at the tip of Africa, and we need to begin to ask ourselves whether skills is in fact a priority and just how important is it for us to get this right?